The question is, would you pay 100 GBP for your e-cig?
Most would say no, but in order to give Chinese workers a fair deal, that would be the price. So we are faced with a moral and financial dilemma. Business means making profit from goods or services and competing in a free enterprise market. If I were to take the moral high ground and insist that our factory pay better wages then we would probably not sell many e-cigs, meaning we would go out of business and the factory would have to find another benefactor, close or go back to average wages. China will no doubt catch up eventually but at the moment they are going through childhood in their industrial, technological and economic development - production line means a long row of tables with workers hand assembling everything.
Around 8 years ago many companies started moving into China as there were a lot of grants for setting up factories - they wanted our know how and were offering cheap labour. At that time a major shoe manufacturer from the UK moved the bulk of production over there and shed half of the UK workforce just before Christmas, around 350 people on the dole with many having little prospect of finding jobs in an area that had relied on shoe factories for a long time. The average European wage in the industry was 1200 GBP per month, the average in China was around 60 GBP per month, which meant it was a no-brainer to manufacturers. They could afford to reject up to 30% of imported stock and still make more profit.
So do we stay in business and be accused of profiteering at the expense of Chinese workers or do we agree with all other suppliers to multiply our prices x 5, pay the Chinese workers more money and risk losing customers back to the cheaper tobacco alternative?
Anyone can make a documentary highlighting the plight of people all over the world (and I agree that there are some horrendous situations), but do they offer solutions that will satisfy everyone?
£3 a cartridge anyone?
Cheers.
John.