Shoe Enterprises Seriously Use Labor Shortage To Refract Enterprise Defects

October 8th news for many Shoe enterprises In particular, the processing trade shoe factories in the Pearl River Delta region suffered serious problems this year. Labor shortage The root of the disaster was buried two years ago. In 2010, more than 2 million workers were left short in the PRD, and factories were worried about hiring workers. In 2008, it was also in the Pearl River Delta that the financial crisis struck the order of shoe factories, and factories cut down the cost of workers in order to save costs. At that time, some shoe factories laid off more than 50%. Workers are not a simple commodity. They are just being pushed away. Even though the layoffs in the financial crisis are not the root cause of the shortage, they reflect the huge defects of Chinese factories. An enterprise can fire 50% of its employees at any time, and the basic interests and benefits of employees are not guaranteed. This reflects that enterprises have long regarded workers as inertia thinking with low cost and lack of humanistic concern.

This year's hubbub " Foxconn It is precisely this kind of defect that has been concentrated to the extreme performance. The brutal fact of "Thirteen linked jumping" has made the survival state of the workers become the focus of attention from all walks of life. In this social discussion, the footwear industry should have seen many familiar words and familiar viewpoints, and should also reflect on and take precautions. Although the footwear industry has not yet seen such large-scale excesses, problems such as labor conflicts, low sense of belonging and mobility have been in the footwear industry for a long time, which is the main reason for the difficulty of recruitment.

As we all know, the migrant workers who are now working in cities are new human beings born in the 80s and 90s of last century. The implementation of family planning has made the absolute quantity of this population unable to match the "working force" in the 90s of last century. The improvement of education level, the improvement of rural living conditions and the acceleration of urbanization have greatly dispersed the employment of rural labor force. The goal of these young people to work in cities has changed from their "basic survival" to their "decent life". Their desire is no longer working hard and working hard all year, sending money home to support their families and no longer satisfied with selling their cheap labor mechanically and repeatedly. This is also the inevitable result of the awakening of human consciousness and the progress of thinking after social development. Migrant workers are eager to integrate into the city and change their own destiny. It is in this era background that the daily work of the streamlined work in the shoe factory is much more attractive to the current migrant workers. {page_break}

Is it a good way to raise salaries and move inland?

The first measure taken by Foxconn for jumping out of buildings is raising wages. It is reported that the maximum salary increase is as high as 66%! Foxconn is used as a means of crisis public relations, hoping to pacify the staff of panic. It is also before and after the move of Foxconn that several cities in the Pearl River Delta region have announced the raising of minimum wage standards, for example, Guangzhou has been transferred from 860 yuan to 1030 yuan per month, and Dongguan has been transferred from 770 yuan to 920 yuan a month. Shenzhen has been transferred from the special zone within 1000 yuan / month to 900 yuan / month outside the special zone to 1100 yuan / month. Next, it triggered a nationwide wage increase. Since then, more than a dozen provinces and municipalities have raised the minimum wage in China, increasing by an average of more than 10%.

Salary increase is also the best way to attract employees in the shoe factories. The increase in interest is undoubtedly the most intuitive and attractive. In Wenzhou's private shoe enterprises, in recent years, after the Spring Festival, employees will be awarded bonuses to employees who have returned to the factory early. As early as this year, the government adjusted the minimum wage standard. In Guangdong, Fujian, Zhejiang and other places, shoe enterprises had already mentioned their wages in order to solve the difficulty of recruiting workers, but how effective they were, and they knew all about the shoemaking industry. The fundamental problem of China's labor shortage now is that there has been a clear contradiction between China's labor costs and the enterprise's profit model. Even if the enterprises raise their salaries within the scope of their ability, hundreds of dollars per month can not solve the practical problems in their lives. The average remuneration per hour of Chinese manufacturing workers is still only 6% of the US hourly wage. The welfare benefits of the elderly, housing, children's education, medical care and so on, which are urgently needed to be solved by Chinese workers, are still unreachable. Hundreds of dollars in monthly wages can not catch up with the soaring housing prices in China, which can only offset the soaring prices of Chinese rice and oil. Chinese shoes still can not afford the cheap labor force to produce cheap goods and make the most profitable profits.

The second measure taken by Foxconn is to move inland, transfer the production line of Shenzhen to the inland provinces, reduce the cost of labor and relieve the pressure of employment. This move is no longer a novelty in the shoe industry. A few years ago, "East shoes moved westward" has become a hot topic in the industry. Industry follows the migration of the cost of land, manpower, resources and so on. This is the behavior determined by economic laws. However, what we do not want to see is simply following the low cost of enterprise migration, continuing to replicate the low profit processing mode in the inland provinces, and then facing the same embarrassment after a few years. The process of economic integration in China is accelerating, and the difference between urban and rural areas is shrinking rapidly. How many years can the cost gap between Sichuan and Guangdong maintain? How many years can Henan's low-cost labor resources be used for the relocation of enterprises? What is doubtful is that Chinese shoe factories can continue to move to the middle and continue to rely on low labor costs to survive. {page_break}

Transformation must be transformed

The slogan of "transformation is imperative". Many slogans have been shouting for N.

The workers are hard, but the factories are very hard. Behind the repeated wage raising measures, many enterprises have paid 20% higher wage costs on the critical point of survival and collapse, and their meager profits have been cut off. During the financial crisis, the economic circles even had a view that the labor contract law should be abolished shortly after the financial crisis. It is considered that this law is not in line with China's national conditions and should be abolished to save many enterprises that are on the verge of collapse. Although this view sounds ridiculous, it can be seen that the low profit margins of China's manufacturing industry have reached the point where they can not afford to take any trouble.

Chinese shoes are now facing huge doubts about "where profits are going" both in the domestic market and in the international market. At home, on the one hand, shoe factories are struggling to get all kinds of rising costs. On the other hand, the prices of shoes in the shopping malls are still high. So, where are the profits of the shoes sold at high prices? The reason is that the operating cost of China's domestic shoe market is high, and the enterprises can never find a breakthrough to reduce the marketing cost. The profit distribution of the terminal sales channel to manufacturers is huge. The high tax policy and the industrial and commercial environment which are prevalent in corruption, the high deduction point and the hidden rules cost caused by the fierce competition in the market, and so on, lead to the high operating cost of the domestic market, and the shoe factories and consumers can not enjoy the benefits, and profits are exploited by layers. In the export market, the Chinese shoe industry has been doing foundry for a long time, regardless of sales, so as to avoid operating risks. The Chinese factory has earned $5 to provide us $100 Nike shoes for the US market, and the middle 95 has been taken away by the buyers and distributors. How can such enterprises benefit from the distribution of profits? How can enterprises earn 5 dollars to raise their salaries and salaries for employees, not to mention deeper welfare concerns?

Therefore, what we are calling, hoping to see, is not news that a certain shoe company raises 10% or 20%. It is not the good news that the cost of a shoe factory has been reduced and the production can continue, but the Chinese shoe industry and the Chinese manufacturing industry can take practical measures on the road of transformation. Labor shortage is a signal that the market forces the industry to transform, and it is the turning point that "made in China" must face. The old saying goes, "poverty changes" and "change rules". When Chinese shoe factories really realize transformation, they are the real solution to the shortage of labor. We hope this day will not be too far.