Abstract
Industrial upgrading in China is rapidly increasing the competence requirements for employees on the shop floor. The institutional environment in China, however, does not seem very supportive: the quality of vocational education is often low and Chinese labor law provides strong incentives for companies to use temporary labor. This paper examines the competence development practices for blue-collar workers in automobile companies in China. Against expectations, automobile companies in China do not pursue ‘low road’ strategies but have designed intensive internal training programs and long-term career paths for blue-collar workers. Different theoretical explanations for the competence development approaches are discussed: human capital theory, high-commitment work systems theory, production systems theories, industrial relations and institutionalist theories. The paper is based on qualitative case studies of German, Japanese and domestic automobile manufacturers in China.
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