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Riding the Wave of Globalization: The Boundaryless and Borderless Careers of Chinese Seafarers
Jonathan Morris and Bin Wu Economic and Industrial Democracy 2009 30: 429 DOI: 10.1177/0143831X09336564 The online version of this article can be found at: http://eid.sagepub.com/content/30/3/429

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Department of Economic History, Uppsala University, Sweden

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Riding the Wave of Globalization: The Boundaryless and Borderless Careers of Chinese Seafarers
Jonathan Morris
University of Nottingham Cardiff University

Bin Wu

This article explores the emergence of new career patterns for Chinese workers in the context of the emergence of a global labour market. An empirical survey of 49 ships moored in Hong Kong Harbour and primarily crewed by Chinese seafarers is reported on, drawn from ships owned by Chinese state-owned companies, foreign-owned China-based ships or foreign-owned ships. Replacing the centralized, politicized job-allocation and promotion system, Chinese seafarers can be distinguished into three groups; traditional seafarers (employed by state-owned companies), transgrants (employed by state-owned companies or crewing agencies but mainly working on foreign-owned ships) and freemen (self-employed, working for both national and foreign-owned ships.

Keywords: careers, China, globalization, seafarers

Introduction The US-based human resource management literature has, over the past decade, become replete with articles heralding the new career. Premised on the slightly earlier notion of the new organizational form (downsized, delayered and concentrating on core activities), the old career of organizational man (long-term employment, stability and rising with seniority) has been replaced by the new career individualized, intra-organizational, interorganizational and disrupted. The concept of the new career has increasingly been critiqued and criticized, as has its antecedent and context, the new organizational form. Moreover, the new

Economic and Industrial Democracy 2009 Department of Economic History, Uppsala University, Sweden, Vol. 30(3): 429453. DOI:10.1177/014383109336564 www.sagepublications.com

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career is situationally specific, that is, a US-based phenomenon. The growing non-US-based empirical literature has not, thus far, included developing economies. Our research setting, China, is not only a (fast) developing economy, but one which is in transition, as are its organizations and the employment relationship. This article explores the changing career pattern of Chinese workers by concentrating on one occupational group, seafarers. The article argues that seafarers do represent broader shifts in career patterns in China. We indicate that several new career paths are opening up to them, with positive and negative consequences, and further explore Chinese seafarers attitudes to their new world of work. The article is divided into five further sections and a concluding section. The next section critically examines the notion of the new career. The third section provides the Chinese context detailing the broad changes occurring in work and organization. We then review the literature on careers in China, on the Chinese shipping industry and on Chinese seafarers. The main section follows, reporting on a survey of seafarers in ships moored in Hong Kong, both Chinese and foreign-owned vessels, with Chinese-only and multinational crew patterns. The research is distinctive from much of that carried out on work and organization in China, which primarily relies on data from managers.

The New Career Concept The past decade has witnessed a renewed interest in the concept of the career. Arthur and Rousseaus (1996) influential collection, The Boundaryless Career, stimulated a widespread debate on the changing nature of careers, spawning a variety of terms including portfolio, free agent, protean and capitalist careers. Osterman (1996) titled this phenomenon Broken Ladders. These approaches stress that the new career arrangements are more independent than traditional organizational career arrangements. Careers are less predictable, less organizationally dependent and thus more boundaryless (Dany et al., 2003). This debate was premised upon a wider debate on new organizational forms (Child and McGrath, 2001) and their employment relationship implications. A growing scepticism emerged with regard to the notion of the new careers. First, there were criticisms that major claims were being made based on very little empirical data (Dany et al., 2003). Second, the empirical evidence was carried out in industries that were, possibly, prototypical, but certainly not representative of the economy at large,

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such as high technology sectors. For example, while acknowledging changes, contributors in Osterman (1996) argued that transformation was not as extensive as some of the claims made and that the extent and motives for change differ markedly between industries. In general, however, Osterman et al. argued there were clear trends, including fewer layers and fewer jobs, increased job insecurity, a seniormiddle manager divide, increased performance pay, less promotion and a need for broader, more generalist skills and less functional specialisms. Indeed, while few authors contest that marked changes are occurring in organizations, several contest the transformational nature of the change (Child and McGrath, 2001). Osterman (1996) argues that two different organizational models are emerging. First, a centralizing/cost cutting model, which represents an effort to perfect existing, traditional models; and second, a decentralizing/empowerment model, which represents a new version of the firm. A third criticism has been played out at the macro level. In the UK, for example, Doogan (2001) notes that while surveys and opinion polls point to major increases in feelings of job insecurity, job tenures remained very stable in the 1990s and that long-term employment (10 years plus) grew markedly, especially for females and in high technology sectors for part-time workers. This insecurity paradox is explained by growing merger and acquisition activities and the marketization of public services. In the US, researchers are sceptical about the extent of workplace change, pointing to fairly stable tenure rates and long-term job attachment (Cappelli, 1999). Jacoby (1999) notes that while temporary work has increased it still represents a small percentage of the workforce and that part-time work is stable, is largely voluntary and long term. Cappellis (1999) interpretation differs, however, in that he argues that the new business environment has created instability, and hence unstable careers. A fourth criticism is that the new career model reifies the older one. Certain industries, sectors and groups have never had stable, long-term careers. For example, women often had discontinuous and boundaryless careers. Thus, the increased evidence for the boundaryless career may be attributed, in part, to the growing participation rates of females in western economies. The final criticism, and one pertinent to this article, is that the new career may be essentially a US-centred phenomenon. Certainly, there is evidence of changing career paths in other, largely developed, economies. Research in France (Dany et al., 2003), the UK (Guest and MacKenzie Davey, 1996) and Japan (Lincoln and Nakata, 1997) points to incremental

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changes in careers. A prime aim of this article is to add to the empirical stock with a survey of career trajectories of one occupational group, seafarers, in a developing economy, China. Thus, the next section presents an overview of major changes to work organization in China.

The Reform of Work and Organizations in China The economic reform process in China and resultant changes to work and organization are now well rehearsed (Nolan, 2001). Three main trends and issues are important. 1. Following the open door policy post-1979, from a base of no direct foreign investment in China in 1980, by 2001 investment totalled US$60 billion (NBS, 2005). Investment activity, allied to labour market reforms and changes in human resource management (HRM) practices and enterprise reform, has provoked considerable changes in career patterns in China. 2. State-owned enterprises (SOEs) accounted for the majority of industrial output (in 1978 they produced nearly 80 percent) but now account for a small share (20 percent). Nevertheless, they employed 65 million workers in the 2006 (NBS, 2006), although this will decrease further by 2010, due to mergers, downsizing and closures (Cooke, 2008; Hassard et al., 2007, 2008). A twin track policy has been applied to the SOEs. First, the 15th Party Congress in 1997 decided to concentrate efforts on 500 of the largest SOEs and many faced bankruptcy or merger (Morris et al., 2001). These 500 SOEs would be subject to organizational and managerial reform through two reform measures, the modern enterprise system and the group company system entailing the introduction of modern, market-based, managerial systems into the SOEs, including innovative HRM practices. Under the group company system, the SOEs were to be split into a number of different companies in a group company. Sheehan et al. (2000), for example, describe a steel-producing SOE where steel production was at the core of the group but where the in-house construction division was designated as a separate company and expected to seek external business such as retail and housing projects. It was anticipated that the new companies would absorb surplus labour from the groups core activities, as these large, high profile SOEs have been anxious to avoid redundancies. In the case of Chinese shipping enterprises,

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for example, the companies have formed crewing agencies, which offer labour to the Chinese non-state-owned shipping companies and to the international market. 3. The third reform area has been in the HRM and the employment relationship arenas (Benson et al., 2000; Cooke, 2005; Ding et al., 2000; Gamble et al., 2004; Hassard et al., 2006; Morris et al., 2004; Sheehan et al., 2006). Essentially, China has moved from an urban employment relationship system of the iron rice bowl, including centralized state job allocations, lifetime employment, seniority-based wages (but with a fairly flat wage hierarchy), extensive cradle to the grave benefits and extensive unionization, to a more market-based system with open labour market job allocations, fixed labour contracts, pay increasingly tied to performance, employee contribution-based welfare benefits and declining union coverage and power. While foreign-owned enterprises are more likely to have a more market-based employment relationship, the broad trajectory has been towards market-based systems, which has, in turn, implications for careers in China.

Careers in China Nee and Cao (2005: 25) have developed a framework of market transition comprised of three elements: the higher marginal productivity of private enterprises relative to state-owned ones; labour market competition by firms for skilled workers following the demise of the state in labour allocation; and the expansion of merit-based reward systems in firms in response to increased competition between firms for market share and profit. How has such a transition impacted on careers for Chinese employees? Walder and colleagues (Li and Walder, 2001; Walder, 1995, 2004; Walder et al., 2000) conducted pioneering work on dual-track careers in China, noting that within the public bureaucratic administrations and SOEs there was a dual-track promotional ladder. This comprised, first, of an administrative lane that was overtly political and was responsible for implementing state policies and administrative directives. Second, there was a professional and technical career ladder, which was confined to the management of technical matters and production processes in Chinese industrial organizations. Party membership was almost obligatory for promotional opportunities on the first ladder, but not the second,

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although a degree of redness and network ties assisted (Bian, 1977; Morris et al., 2001). Typically state-owned factories were run by someone who had climbed the administrative ladder, with a deputy who had come from the professional/technical ladder. While useful, Walders analysis tells us little about the position of those lower down the ladders in non-managerial positions, or what has changed through the transition. Cao (2001), Nee and Cao (2005) and Nee (1996) chart the growing stratification of urban China through the transition period, noting growing inequalities based on market skills, investments in human capital and private entrepreneurship. Unsurprisingly, private and hybrid capital forms are adopting market-based human resource practices, while public sector administrative functions are more reminiscent of pre-reform practices. However, where the public sector is open to market competition, organizations are adopting more marketbased recruitment, selection and promotion practices in order to recruit and retain staff in a context where skills are, paradoxically, in short supply and competitive. Zhao and Zhou (2004), nevertheless, note that the state still has a major influence on the internal workings of organizations, and hence careers, despite decentralization and growing autonomy (see also Chen et al., 2004; Hui et al., 2004; Zhou, 2001; Zhou et al., 1997). Much of the HRM literature deals with careers in the context of the emergence of more market-based labour allocation in foreign-invested enterprises and, more slowly, in SOEs. This points to, perhaps, more boundaryless careers or, at least, more broken ladders. There are, however, few organization-based studies on careers. Ke and Morris (2002) studied career development in four financial services firms, two stateowned and two foreign-owned. The foreign-owned firms recruited on more open-market principles, and employees in these firms were far more likely to judge the recruitment and selection process as systematic and fair, with greater rewards in the foreign firms. However, state-owned employees reported a greater feeling of job security and much shorter working hours.

The Changing Employment Relationship of the Chinese Seafarer The career development of Chinese seafarers needs to be set within a context of a broader, internationalized, indeed even globalized, labour market for such workers, which has been evolving since the 1970s (Alderton and Winchester, 2002). Broadly, relatively high wage seafarers from traditional maritime nations in Western European and North

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American countries have been replaced by low wage seafarers from Asian and Eastern European countries. Thus, while the developed economies control approximately 75 percent of the world fleet, 85 percent of seafarers come from developing and transitional economies (Lane et al., 2002; LRF, 2002), with China a major supplier. While China has the fourth largest shipping fleet (after Greece, Japan and Germany), it ranks as second largest nation in terms of the number of seafarers (after the Philippines), and fourth in terms of the supply of seafarers to the global labour market (Wu and Sampson, 2005). At the same time as the development of a global labour market for seafarers, the Chinese national labour market for seafarers has changed dramatically due to institutional changes in Chinas international shipping operations (and which mirror those broader changes outlined in the last section). Prior to the 1980s, all of the seafarers in Chinas ocean-going sector were permanently employed in the SOE sector, with those seafarers enjoying the advantages of the iron rice bowl outlined earlier. Since 1980, however, economic reform and an open door policy to international investors have ended the Chinese state monopoly of both the sea freight market and of seafaring resources (i.e. labour). By 2000, for example, there were over 300 shipping companies registered in China for international transport, with the majority non-state-owned and a significant number foreign-owned (MOC, 2001). Unlike their state-owned counterparts, the non-state-owned companies do not have a pool of permanently employed seafarers but rather employ workers on a voyage-by-voyage basis by tapping into the labour market. This has resulted in a flow of seafarers from the state-owned to the non-state-owned segments that has been beneficial to state-owned companies as they all suffer from overstaffing to some extent (Gu, 1999; Sheehan et al., 2000; Zhai and Wang, 2002; Zhao, 2002; Zhu and Dowling, 2002). Despite the absorption of SOE seafarer labour into the non-state-owned sector, a surplus labour problem remains. This had led both the Chinese state-owned employers and the seafarers themselves to seek employment opportunities in the global labour market. Consequently, a number of intermediate crewing agencies have been established, owned by stateowned shipping companies, government authorized foreign-trade companies or local (Chinese) labour bureaus (generally municipally run). By 2002, for example, 45 agencies had been registered by the recently formed China Seafarers Export Coordination Unit, which offers an institutional base to deal with seafarer export affairs (Wu, 2004). Thus driven by changes in both the domestic Chinese and global labour markets, Chinese seafarers have, in employment relations terms, changed

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from a fairly homogeneous group to one increasingly heterogeneous in terms of, for example, employment status, recruitment channels, working conditions, pay and welfare. Even within the state-owned fleets marked changes are taking place, involving a shift from a relatively flat, ship-based organizational hierarchy to a more marked occupational one similar to those found on western ships; labour intensification on board with certain occupations being phased out and the numbers of ratings per ship being cut; a reduction in wage bills by cutting on-shore and on-leave wages; and a casualization of employment contracts with fixed-term ones replacing permanent ones (Zhao, 2002). Moreover, while the numbers of female seafarers is increasing (alongside global trends), females are being occupationally segregated into traditional female roles. In the past, Chinese ships included all-female-officer crews and even all-female crews, but females are now confined to the ships in the growing passenger market in roles such as waitresses, stewardesses, nurses, childcarers and so on. Cosco, Chinas largest shipping owner (state run), for example, employs 47,000 seafarers, only 200 of whom are female and all of whom are employed on four passenger ships (Zhao, 2002). Outside the SOE sector, which offered (and still does, to some extent) a fairly steady and secure career route, there are now alternative routes for Chinese seafarers, working on foreign-owned ships, either hired out by state-owned companies or crewing agencies. The career and work trajectory of Chinese seafarers has thus been fragmented from the sole lifelong, immobile state-owned enterprise one into three broad categories, largely based on recruitment and labour market participation (Wu, 2004). First, there is a traditional career, that is, those who work permanently (albeit on contracts) and continuously for SOE shipping companies. Second, there are transgrant workers, who are either SOE employees or have signed a long-term contract (usually three to five years) with a crewing agency, and who mainly work for either the non-state-owned Chinese sector or for foreign shipping companies. Although transgrants may share certain characteristics with traditional seafarers, such as their employment title, wage or welfare, their recruitment is mainly dependent upon the labour market domestically or globally, which is different from the latter, who concentrate on their own company fleets. The third group are freemen, essentially self-employed seafarers who are neither tied to an enterprise or a crewing agency.1 Similar to transgrants, freemen also rely upon open labour markets and typically sign a short-term contract (usually eight to 12 months) with a SOE company or crewing agency to work on a foreign ship. The fundamental difference between them and the other two groups is that freemen do not

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have a long-term relation with, or a dependency upon, any SOE company or crewing agency for their job security. Set within this context, and the broader ones of changing career patterns and Chinas economic reform process, four questions are to be addressed in this article: 1. What different characteristics were evident in the three career routes in terms of career development and job security? 2. Why did the seafarers choose their occupation and their current career route in particular? 3. How do seafarers change their career route? 4. What are the implications of the case of Chinese seafarers for the broader reform process of HRM in China and in adaptation to the global labour market?

The Survey Methods and Background In order to answer the questions posed above, a questionnaire-based survey was conducted in late 2002/early 2003 of Chinese seafarers.2 It targeted active Chinese seafarers who were serving aboard international vessels, both Chinese and foreign-owned. For the purposes of this research, both Hong Kong and Taiwanese-owned vessels were regarded as foreign. Hong Kong was chosen for the research site for three principal reasons. First, as one of the worlds largest ports it was anticipated that we would have a greater chance to find international trading vessels there with a Chinese crew. Second, as a hub port in East Asia, we anticipated that we would be able to access ships owned by small and medium-sized shipping companies whose business was largely confined to East Asian regional routes (between Singapore, China, Korea, Japan and Hong Kong). Finally, Hong Kong is a free port in which targeted ships would be relatively easy to access. In practice, ocean-going vessels with a Chinese crew were targeted for the survey throughout the anchorage areas of Hong Kong port where seafarers would have more time to participate in a questionnaire survey rather than in the busy docks. In the sample ships, all of the Chinese seafarers were assembled and invited to fill in the questionnaires. In total, 49 of a possible 55 eligible ships were involved in the survey. The 49 vessels involved in the sample comprised of 23 Chinese- (PRC) owned vessels and the 26 foreign-owned vessels, including ships owned

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by companies in Taiwan, Hong Kong, Malaysia, South Korea, Japan and Singapore. Of the 23 Chinese-owned vessels, five were owned by one of the large SOEs, 13 were owned by local state-owned companies (provincially or municipality owned) and five were non-state-owned companies. Out of a total of 1078 crew working on the sample vessels, 940 (or 87 percent) were Chinese (excluding Hong Kong and Taiwanese). Of the 940 eligible Chinese seafarers, 494 (or 53 percent) participated in the survey. Reasons for non-participation included those on shore leave, those sleeping due to working night shifts and those who were busy on duty (for example, involved in engine repairs or loading and unloading cargo). Statistical tests, including ANOVA and chi square tests were applied to the data (excepting those in Tables 6 and 7, which had multiple responses). In addition to the quantitative data collated, 40 face-to-face interviews were conducted in the Hong Kong Mariners Club in order to draw out a more detailed picture of the experience of job change and careers among Chinese seafarers.3 As the Introduction indicated, the research adds a significant contribution in that it is not reliant on managerial views, unlike much of the HRM research in China to date. The Division of Career Routes Applying the threefold definition, 46 percent of the sample can be categorized as traditional seafarers, 35 percent as transgrant and 20 percent as freemen (see Table 1). Within the transgrant category, 70 percent are SOE employees and the remaining 30 percent have a long-term contract with a crewing agency (so-called agency-tied seafarers). While we are aware of a potential sample bias and we would not claim that this distribution is representative of all Chinese seafarers, it is probably safe to assume that the traditional group is still the largest category of Chinese seafarers, and that the number of freemen is relatively small. Table 1 also indicates that the three different career route categories also display somewhat different demographic characteristics, certainly with regard to their age and seafaring experience. Compared with traditional seafarers, transgrants and freemen are slightly younger and have less seafaring experience. It may be the case that the establishment and development of a more open domestic and global labour market may be more attractive to younger seafarers than traditional routes, but the age differences are relatively small. Perhaps more significant were educational differences between the groups. Fifty-seven percent of the sample had a middle-level education,

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TABLE 1 Profile of Sample of Seafarers by Selected Indicators Status N % Mean age (yrs) Experience (yrs) % with higher education Traditional 224 45.5 37.2 14.6 25.2 Transgrant 173 35.2 35.1 11.2 33.5 Freemen 95 19.3 35.0 11.1 20.0

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Total/Average 492 100 36.0 12.7 27.1

Source: Authors Hong Kong survey. Notes: One-way ANOVA for seafarers, age, F = 3.494 (sig. .031) and seafaring experience, F = 10.552 (sig. 000); c 2 for seafarers education profiles, .19 (asymp. sig.).

in that they either graduated from high school at the age of 18 (12 years of basic education) or they had some maritime vocational training (two to three years additional to middle school). However, 27 percent of the sample had gone through higher education, either at a maritime university or higher education college, with the remaining 16 percent only having an elementary education (around nine years in school). With regards to those who have a higher education, there were some marked differences between the three groups (traditional, transgrant, freemen). Over onethird of the transgrants were higher education graduates, compared to one-quarter of the traditionals and one-fifth of the freemen. The proportion of highly educated seafarers in the transgrant group would enhance their adaptability and their competitive position in the global labour market. By contrast, the smaller numbers of higher education graduates in the freemen group may reflect the fact that such highly qualified seafarers often face more constraints when they attempt to transform themselves from SOE companies to freemen. In particular, SOE companies are often very reluctant to let such employees transfer and may place barriers to such a move. As indicated earlier, seafarers have a tradition of a strict hierarchical system, broadly comprised of senior officers, junior officers and ratings. Moreover, a strict seniority system applies, with seafaring experience emphasized alongside (maritime) education in career development. Thus, all new employees, however high their educational level, follow a career route starting at rating through to junior officer, before promotion to senior officer rank. Table 2 presents the correlation between rank and education. This indicates that junior officers are the best educated, reflecting the fact that they are part of a younger, better educated generation of Chinese workers.

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TABLE 2 Rank Composition by Education Level

Education Higher Intermediate Elementary Total

Senior Officer (%) 27.3 24.1 4.9 21.7

Junior Officer (%) 45.5 23.3 2.5 25.9

Ratings (%) 27.3 52.6 92.6 52.4

N 132 270 81 483

Notes: Row as 100%. Higher education: hold an university degree or graduate from a HE institute; intermediate education: graduate from high school or maritime vacation school; elementary education: spending nine years or less in school. c 2 = .000.

Recruitment and Recent Labour Market Experience With respect to their recent employment experiences, the participants were asked to provide detailed information on their last three contracts. As Table 3 indicates, half of the respondents had only worked for the Chinese-owned fleet, while just over a fifth had only worked in foreign fleets. Over a quarter, however, worked in both Chinese and foreignowned fleets. As might be expected, by definition the vast majority of the traditional seafarers (93.3 percent) remained in the Chinese national fleet. But a minority of transgrants and freemen had also worked in the Chinese national fleet (13.1 percent and 16.7 percent respectively). Both the transgrants and freemen were fairly evenly divided between those oscillating between Chinese and foreign fleets (and thus catching employment opportunities in both fleets) and those who only worked in foreign fleets. Freemen were, however, slightly more likely to move between the two than to work only in foreign fleets.

Choice of the Seafaring Vocation and Career Route In general, the survey indicated that seafaring was considered an attractive occupation by the majority, and that the respondents often had often chosen to change career later on in life. The most popular responses to why seafarers chose their job was personal interest (one-third), followed by the influence of social networks, including family, relatives and friends (one-quarter). A relatively high percentage (nearly 20 percent) of seafarers ended up in their jobs by chance, which was particularly true of university and college graduates who often did not plan to become

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TABLE 3 Change of Recruitment Location in the Last Three Contracts Status Traditional Transgrant Freemen Total Stay in PRC Fleet (%) 93.3 13.1 16.7 50.4 Between (%) 6.7 44.3 47.2 27.7 Stay in Foreign Fleet (%) 42.6 36.1 21.8

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N 163 122 72 357

seafarers but were assigned to a maritime discipline during the process of national higher education examination and enrolment.4 Of the four major motivators, pay came last. The various job motivations of seafarers differ considerably, however, between the three career routes. Freemen were far more likely to be motivated by pay and personal interest (70 percent) than the traditional or transgrant seafarers and were much less motivated by network ties or serendipity. It could be argued, therefore, that the freemen had a far clearer vision of a seafarers career than the other groups prior to joining the maritime industry. Given problems of surplus rural labour and urban unemployment (Chang, 1996; Gu, 1999; Solinger, 1999; Xiang, 2003; Zhai and Wang, 2002), a seafaring occupation is still an attractive one for Chinese coastal, rural and even urban residents. Nearly one in 10 respondents (9.4 percent) had moved into ocean shipping from another occupation. They were primarily, but not exclusively (70 percent), employed on ships as ratings and their previous jobs were as cooks, mechanics, carpenters or fishermen. The 30 percent of newcomers who were now officers typically previously had shipping experience, but as officers in either river-based or coastal shipping companies. The survey indicated a career transformation from traditional seafarers via transgrants to freemen. This, for younger educated seafarers, was an attractive proposition, particularly the opportunity to work in foreign fleets. This has led to increased competition for transgrant workers. In one of our interviews, for example, a graduate from Dalian Maritime University, one of the leading ones in China, explained:
Differing from SOE employment in the past, employment through crewing agencies is more popular among new graduates this year because they would like to work aboard foreign ships. As a result, those crewing agencies who came to the university for career fairs have set up tough criteria to be short-listed for interview: their academic scores should be in the top 30 or first 50 of all graduates.

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14 12
No. cases

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10 8 6 4 2 0 1980 1985 1995 2000 Year FIGURE 1 Starting Year of Freemen (N = 90) 1990 2005

As well as transgrant seafarers, there has also been a steady growth of freemen, some of whom had formerly worked for SOEs, including those that had downsized their staff due to a decline in the company fleet size. Figure 1 illustrates the growth of freemen post-1985.

The Dynamics of Career Route Changes With regards to the dynamic forces behind changes of career routes, many traditional seafarers claimed in the interviews that they had not had enough opportunities to work on ships in the traditional sector. One possible explanation, therefore, of the move to transgrant and freeman status is that they may offer greater opportunities for employment. In order to measure this, a probability of onboard ship (POS) was introduced, which indicates the likelihood of seafarers signing an onboard contract per year with a shipping company or crewing agency. Figure 2 indicates that freemen had greater opportunities to be recruited than the other groups, with traditional seafarers the least likely. These increased onboard opportunities would seem to be an important driver of change in the move towards transgrant and freeman career routes. By contrast, traditional seafarers were more likely to be promoted, and particularly compared to freemen than whom they were twice as likely to be promoted (see Table 4). Thus while the change of career route from traditional to freeman may offer greater job opportunities, it has a negative impact on promotion. Transgrants were closer to traditional seafarers in terms of their promotion opportunities, largely because they often have the same employers (i.e. SOEs).

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0.9
POS (contract/year)

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0.8 0.7 0.6 0.5 0.4 0.3

Freemen Transgrant FIGURE 2 Probability of Onboard Ship (POS) Assignments by Group Notes: N = 188. One-way ANOVA F = 16.840 (sig. .000). Traditional TABLE 4 Change of Seafarers Rank in Last Three Contracts Status Traditional Transgrant Freemen Total Downgraded (%) 1.8 9.1 4.2 4.8 Unchanged (%) 68.8 65.9 79.2 69.8 Promoted (%) 29.5 25.0 16.7 25.4 N 112 88 48 248

Notes: Cases were selected only if they had at least an intermediate education and were aged 45 years or under. c 2 = .076.

Despite poorer promotion opportunities, freemen were far better paid, on average, than either of the other career route groups. While the difference was marginal at ratings level, it was marked at junior officer level and even more pronounced at senior officer level, where incomes were 60 percent higher in the freeman groups than in the traditional and transgrant groups (see Figure 3). This may explain the previous quote from the Dalian Maritime University graduate. Similarly, another freeman seafarer interviewed observed that:
Before I left an SOE company three years ago, I was a 3rd officer with only $300/month excluding welfare [pension and insurance]. Dissatisfied with the poor income and few chances of promotion, I selected the route of freemen after a long time deliberating. It might have been more difficult to do so without the recent reform of Chinas maritime administrative systems in which individual seafarers can gain their seamen books and certificates by themselves if they can show their contract with the SOE has been sorted out. Now I am working for a Taiwanese company through a crewing agency. As 3rd officer, the company pay me US$1200 monthly and I can receive US$850, or 70 percent of my salary. The rest is taken out by the

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1800 1600 1400 1200 1000 800 600 400 200 0
Senior

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US$ per month

Junior

Ratings

Rank division

Trad.

Tied

Freem

FIGURE 3 Seafarers Full Pay by Group

agency every month. Besides the wage . . . I can get overtime payments or sometimes a bonus from the company directly, which is quite different from most Chinese seafarers in foreign ships. As a result, the my total income is about US$1000 monthly.

Seafarers Job Satisfaction Despite concerns from seafarers over issues such as labour rights, wages and regulation of the labour market, the majority of seafarers were broadly satisfied with their career (see Table 5). However, over one-third were dissatisfied. There were, moreover, major differences in satisfaction levels between different groups based on education level, age and rank. Education level, for example, was a major influence on career satisfaction, with those educated over two-and-a-half times as satisfied as those with an elementary education. Similarly, age had a major influence on career satisfaction. Those seafarers over 40 years of age, for example, were far more likely to be satisfied than those under 40. Rank had some influence on career satisfaction, with the highest levels of satisfaction among ratings and the lowest level among junior officers. This was confirmed by interviews with junior offers where they, and particularly those in state-owned companies, raised concerns about wage differentials between themselves and senior officers. Moreover, junior officers in SOEs complained that there was a surplus of officers at this level and hence limited promotion opportunities. It may also be that younger, highly educated seafarers, particularly those in state-owned ships, who have entered the labour market during the economic reform

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TABLE 5 Assessment on Seafaring Career by Selected Category Category Education Status Elementary Intermediate Higher <30 3039 4049 50 Ratings Junior Senior Total Satisfied (%) 86.7 52.6 33.3 43.6 49.2 62.3 72.7 61.6 36.0 54.4 53.6 Dissatisfied (%) 11.1 34.2 50.0 38.2 42.6 17.0 24.2 29.0 50.0 29.9 34.2 Dont Know (%) 2.2 13.2 16.7 18.2 8.2 20.8 3.0 9.4 14.1 15.8 12.2

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N 45 152 66 55 122 53 33 138 64 57 263

Age

Rank

Note: Multiple logistics regression (likelihood ratio test) significant by equation .000, by age .022.

era have higher levels of expectation than older, less educated seafarers with first hand experience of the pre-reform era. An alternative way of analysing the satisfaction levels is to divide seafarers along the three career routes. As Figure 4 indicates, nearly 70 percent of freemen were satisfied with their careers, 14 percent and 21 percent higher, respectively, than transgrant and traditional seafarers. Given the factors outlined earlier, such as pay, onboard interests and personal interests, this is perhaps unsurprising. It is evident that freemen had selected a career route that is very different than the traditional route in state-owned companies. The differing perspectives on seafaring careers can be further explored by recourse to a multiple choice of important factors influencing seafarer career development, involving job security, pay levels, chances of promotion, health and safety, working environment and family life. As Table 6 indicates, the major career issue for seafarers was the salary, across all groups. The second most important characteristic was the working environment, more so than family life. Job security, promotion and safety were also prominent. Working hours were the given the least importance, despite the fact that they often had to work overtime unpaid. Table 6 also highlights some fairly marked differences in responses between the three groups. In this question, seafarers were asked to mention which factors were important in their working lives (with no order of preference). For traditional seafarers, for example, salary was far more important than for freemen, which is perhaps understandable given the

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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

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Don't know Dissatisfied Satisfied

Traditional

Transgrant Seafarers division

Freemen

FIGURE 4 Assessment on Seafaring Career by Respondents (N = 262)

TABLE 6 Multiple Responses to Selected Factors by Seafarer Groups (in percentages) Issues Salary Working environment Family life Job security Promotion Safety Working hours N Total 71.2 66.1 59.6 55.2 51.8 40.0 31.3 469 Traditional 75.0 70.8 65.7 60.6 57.4 44.0 32.4 216 Transgrant 71.5 66.1 57.6 55.8 53.9 42.4 28.5 165 Freemen 61.4 54.5 47.7 40.9 34.1 25.0 34.1 88

wage differentials between the two groups outlined earlier (and particularly for officers). This was true of all of the factors, however, with traditional seafarers rating all of the factors as far more important than freemen, with the exception of working hours. Some of these were again unsurprising given earlier results. Given the lack of onboard opportunities indicated in Figure 3 earlier, for example, it was unsurprising again that over 60 percent of traditional seafarers were concerned about job security, a figure some 20 percent above freemen. Similarly, family life, promotion and safety all scored around 20 percent higher for traditional seafarers than for freemen. The transgrant group, meanwhile, were in between the traditional and freemen seafarers on all of these scores, although they were closer to the traditional group, reflecting, perhaps, the fact that many were still employees of state-owned companies.

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TABLE 7 Multiple Responses of Traditional Seafarers by Age Groups (in percentages) Age Salary Working environment Family life Job security Promotion N 35 and under 82.9 73.3 72.4 68.6 69.1 105 3645 79.4 79.4 74.6 60.3 56.3 63 46+ 52.1 54.2 39.6 29.2 27.1 48

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Limited to traditional seafarers, Table 7 further divides those responses by age. Issues such as salary, job security and promotion were major concerns for the under-35 age group, while the working environment and family life were more important for the 3645 age group. All of the factors drop in importance, quite dramatically in the cases of job security and promotion, for the over-46 age group. This, in all probability, reflects the life cycle.

Conclusions This article has set out to explore the applicability of the new career concept in the context of a developing, transitional economy. For a variety of reasons, the notion of a new, or boundaryless, career has become increasingly contested in the US and western world more generally. Various authors, while broadly agreeing that careers have changed, have contested whether such changes are of a transformative or more incremental nature. To an extent this echoes the wider debate on new organizational forms. Within a Chinese context, arguably, organizational change has been transformational with a relative and absolute shift from state ownership of industry to private, including foreign, ownership. Even within the state-owned sector there has been major change, as part of a modernization and marketization agenda, although organizational inertia and continued political interference have, in reality, acted as a check. As a consequence of such ownership and organizational changes, a new form of employment relationship has emerged in Chinese enterprises, as have new ways of managing human resources. The latter has implications for careers in China with, inter alia, the demise of jobs-for-life employment contracts and the growth of fixed-term contracts; the decline in importance of seniority-based pay, increases in performance-based

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pay and a growing pay divide; and the replacement of centralized, and politicized, job allocations with more market-based mechanisms. Chinese seafarers are a microcosm of the broader reform of HRM in China, and their employment relationships have similarly changed. Those that have remained employed within the state-owned sector have, like their SOE counterparts in other sectors, seen a marked change, with the end of the iron rice bowl heralding the emergence of a more heterogeneous group in terms of the employment relationship. Differing from other industrial sectors, a global labour market has been established for international shipping since the late 1970s, which has offered opportunities for developing, and transitional, economies including China to use and develop their seafaring resources. Responding to such opportunities, a series of organizational changes or innovations has occurred in China. On the one hand, most of the SOEs have developed a new business in labour supply in order to alleviate the pressure of a seafarer surplus. On the other hand, many crewing agencies have been established, which are involved in labour brokerage to meet the demand both of seafarers themselves, who want to transfer from SOE companies, and of foreign shipping companies. As a result, we have witnessed an increasing competition between SOE companies and crewing agencies in domestic and, in particular, in international labour markets. In the face of the labour market environment (both national and international) and of institutional changes (both SOE reconstruction and the emergence of crewing agencies), how have Chinese seafarers adjusted themselves in terms of employment type and career route? And what are the rationale or dynamics behind their choice and adjustment of their career routes? These questions were addressed through the empirical survey at Hong Kong port. The main findings can be summarized as follows: 1. Reflecting the complexity and diversity of employment types and working locations, Chinese seafarers career can be distinguished into three categories: traditional workers, who are both employed by, and work for, the SOEs; transgrants, who are employed (or tied) by the SOE companies (or crewing agencies) but work for other companies (including non-state-owned for foreign shipping companies; and freemen, who are self-employed and work for shipping companies (domestic or foreign), through a crewing agency (or SOE company). 2. The traditional career route remains the predominant one but the freemen are a new and growing group. Transgrants represent an intermediary type, which provides a channel and step, and the conditions to

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adapt to the environment of the new labour markets, and to improve their knowledge, skills and networks before they become independent (i.e. self-employed) and free (no long-term commitments but just one voyage contract with a crewing agency or SOE company) seafarers. Furthermore, our survey indicates a trend of career transformation from traditional seafarers via transgrants to freemen. 3. The rationale behind the division and transformation of career routes among Chinese seafarers, according to our survey, is related to many factors. The characterization, motivation and career satisfaction of the three groups differ markedly. The freemen are, for example, slightly younger than the traditional seafarers. They are far more driven in their career choices by salary and freedom of choice (interests). While they are less likely to be promoted than traditional seafarers, they receive significantly higher levels of pay, particularly at officer level and, especially, at senior officer level. This may suggest that a class of opportunistic and entrepreneurial seafarers is emerging, both as freemen, but also as transgrants, who are more cautious about losing totally the benefits of state-owned employment (particularly job stability) but who are also attracted by the possibilities of the free market sector. Nevertheless, the survey also indicates some constraints against the transformation from traditional or transgrants to freemen (for example, the control of seafarers books and certificates by the state-owned companies, promotion opportunities and social welfare), which are particularly true for those young and highly educated officers. To conclude, the case of Chinese seafarers seems to indicate that current debates on the new career do not reflect the complexity of career development in transitional economies. Alongside the boundaryless perspective, we may need a borderless approach in order to take into account the development and impacts of the global labour markets, not only on the organizational or institutional environments, but also on the choice or redirection of career development among a new generation of professionals there.

Notes
1. We use the gender-specic term freeman because this is the term used by the Chinese seafarers (in Chinese Zhi Yu Ren). 2. A full copy of the questionnaire can be obtained from the authors (emails: MorrisJL@ cardiff.ac.uk, Bin.Wu@nottingham.ac.uk). We would like to acknowledge the considerable

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assistance of the Hong Kong Maritime Department in facilitating the study, and to Ke Lili for her constructive discussions on the changing nature of careers in China. 3. Interviews were conducted by one of the authors in both Cantonese and Mandarin, where appropriate. 4. In China, higher education institutions recruit new students based on the results of the applicants national higher education examination. When a qualied student (whose scores are above the minimum enrolment score set by the provincial government) fails to get an offer from the universities applied to, she or he will have a chance to consider an available place recommended by the government.

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Jonathan Morris
is Professor of Organizational Analysis and HRM Section Head at Cardiff Universitys Business School. His research interests are in management and organization in East Asia, enterprise reform in China and management and new organizational forms. He is currently working on two funded projects, first a large ESRC-funded project critically evaluating the management of the UK Labour governments modernization agenda and second, a UK Department of Health project evaluating the changing role of middle and junior managers in the NHS.
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Bin Wu
is a senior research fellow in the School of Contemporary Chinese Studies at the University of Nottingham. He has a wide range of research interests in globalization, labour mobility and migration. Before moving to Nottingham, he had spent seven years in studies on the global labour market for seafarers.

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