The alternative was to hire local workers. Some companies tried subcontracting. But lacking reliable information, they were rarely able to find good deals. When they directly hired local workers, on the other hand, they found it difficult to adjust to Indian culture.
The Indian workers were keen on standing up for their rights and taking advantage of their Chinese bosses' naivety. After arriving at the workplace, they spent an hour drinking tea, taking a break later on because it was too hot. Sometimes they worked as little as five hours a day.
Workers also sometimes took two days off without any notification and still demanded their wages. The normal response in China would be "no work, no pay." However, the Indian workers might start a strike as a result, sometimes with Indian labor law backing them up.
In order to solve these problems, Chinese companies should learn the local cultural and legal landscape. For instance, different states of India have different festival days, depending on local religious tradition. Workers have the legal right to take these days off, and Chinese firms need to be aware of the calendar. Workers are also entitled to 30 days casual and sick leave annually.
Companies also need international legal talent. An interpreter like myself can translate the local laws, but without legal training, he or she can't really navigate complex legal mazes. For instance, Indian labor laws requires contractors to be paid during their leave, but unskilled workers can be employed on a daily basis instead. Knowing this could give a company a critical cost advantage.
Chinese companies should use local talent to manage and organize workers. Indian managers are better at dealing with the usual work place tricks that might leave a Chinese manager baffled.
The exploration of Chinese companies in India has just started. It is strategically important for them to handle the human resource problems as early as possible.
The author is a Chinese interpreter working in India. forum@ globaltimes.com.cn