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    Footwear And Other Labor-Intensive Enterprises Profit Fell By 10%

    2008/7/15 15:43:00 2

    Footwear And Other Labor-Intensive Enterprises Profit Fell By 10%

    The labor contract law has been implemented since January 1st this year. How much is the cost of labor?

    How does this change affect the competitiveness and production and operation of enterprises?

    According to the requirements of the Guangdong investigation team of the National Bureau of statistics, the Huizhou investigation team went deep into the 9 representative labor-intensive enterprises in Huicheng, Boluo and Huidong counties, and interviewed with the main executives of the enterprises, and conducted a quick survey in the form of questionnaires.

    Of the 9 enterprises surveyed, 5 were foreign-invested enterprises, 2 were limited liability companies, and 1 were state-owned and private enterprises. Among them, 6 were industrial enterprises, 2 were business, 1 were accommodation and catering.

    According to the survey data, in the 1~5 month of this year, the main business revenue of 9 enterprises was 1 billion 590 million yuan, an increase of 5.6% over the same period last year, and the main business cost was 1 billion 450 million yuan, an increase of 13.4% over the same period last year. The total profit was 87 million 510 thousand yuan, a decrease of 9.1% over the same period last year.


    Labor costs increased by 10% to 30%.


    According to the survey data, the average number of employees employed by 9 enterprises in the 1~5 months was 12070, an increase of 3% over the same period last year, and the average labor remuneration of the enterprises increased by 22.4% over the same period last year.

    The social insurance premium paid by enterprises is 11 million 160 thousand yuan, an increase of 70.9% over the same period last year.

    The labor contract signing rate and social security coverage rate of the investigated enterprises were 70% and 61.3% respectively.

    The labor cost of enterprises increased by 23.1% compared with the same period last year, and the ratio of labor costs to operating income increased from 6.1% in the same period last year to 7.2% in this period.

    If strictly implemented according to the requirements of the labor contract law, the labor cost of enterprises will increase even more.


    It is understood that a large increase in labor costs is a factor, first of all, the adjustment of staff salaries.

    In 2008, the minimum wage of enterprises in Huizhou was 670 yuan, an increase of 70 yuan over the previous year, and the corresponding improvement of counties and districts.

    It is understood that: at present, general workers can get a monthly wage of 1000~1500 yuan, technicians can get 1800 yuan / month.


    Secondly, in terms of social insurance, according to the provisions of Huizhou, the minimum social security payment base for employees is 888 yuan per month (adjusted from July to 982 yuan). The total amount of five insurance contributions for pension, unemployment, childbirth, work-related injury and medical insurance is 271.14 yuan per person per month, of which 97.68 yuan is borne by individuals.

    There are also regulations on mandatory paid vacation and overtime and overtime hours. Employees must be paid for 5 days in the enterprise for more than 1 years or less than 10 years, otherwise they will have to pay overtime according to three times wage standard.

    According to the minimum wage standard of 670 yuan, the wage per worker day is 32.17 yuan. If employees are not allowed to take paid leave, the enterprise should pay 482.5 yuan to employees every year, and 3 times the overtime of statutory holidays and the adjustment of overtime pay method.

    In addition, the increased cost of employee dismissal, increased recruitment pressure and increased employment risk will increase the cost of labor to a certain extent.


    The change of labor cost.

    According to the interviews and interviews with the heads of enterprises, the rise in labor costs is a general trend, with an increase of 10% to 30%. However, the difference between enterprises is quite different, and the degree of influence is different after the implementation of the labor contract law.


    Cost of material is high and profit is reduced.


    In addition to the cost of labor, the other costs of enterprises have also increased to varying degrees.

    Among them, the continued appreciation of the RMB exchange rate has a greater impact on export oriented enterprises. Among the 5 foreign-invested enterprises surveyed, 3 of the 100% enterprises accounted for 100%, accounting for 70% of the total, accounting for 1 of the 15%.

    According to the enterprise, the profit of the company decreased by 10% last year because of the appreciation of the RMB, and it is expected to exceed 10% this year.


    The adjustment of export tax rebate policy and the continuous rise of raw material prices are all important reasons leading to the decline of corporate profits.

    Since last year, the proportion of export tax rebates in the processing enterprises has been reduced from 17% to 13%, to 11% this year. At the same time, the land use has been adjusted from the original "fee" to the current "tax". The head of a company told reporters that the "fee" is more flexible. "Tax" is a statutory system, which is strictly regulated and can not be negotiable, and the enterprise must pay in accordance with the amount stipulated in the tax law.


    In addition, the prices of raw materials for industrial production continued to rise this year due to the rising prices of raw materials such as iron ore, coal and other related factors, such as higher prices of international related commodities, increased pportation costs and snow disasters at the beginning of the year.

    According to 6 industrial enterprises, in 1~5 months, the cost of raw materials increased generally from 10% to 40%.

    A low carbon steel as the main raw material reflects the price of raw materials increased by 40% this year. The price of low carbon steel rose from 3800 yuan / ton in the same period last year to 6000 yuan / ton now, the highest price was 6400 yuan / ton, while the factory price rose by only about 10%, and the production of the enterprise was very passive.


    Small businesses are hit harder.


    According to the investigation team, the implementation of the labor contract law has made great impact on many labor-intensive enterprises which are not standardized, small in scale and low in added value of products. Some enterprises are considering moving the company to the mainland with lower labor costs.

    A person in charge of a company said, "when we visited a city in Jiangxi, we gave many preferential policies, but because of the increased pportation cost and the inconvenience of pportation, we had to find another way out."


    In addition, the footwear industry and the toy industry will also suffer from lack of work while increasing the cost of employment.

    The mobility of workers is relatively large, and the working hours of these enterprises are too long, and the loss of skilled workers is serious.

    Many enterprises in order to attract workers, improve food standards, extend the rest time, but the phenomenon of lack of work is still difficult to ease.

    For example, the order that has been received by a company in Huidong is too high because of the shortage of labor and employment costs.

    There are also enterprises reflect: "ordinary employees are not well recruited, skilled workers are hard to stay, there has been a staff gap, the production and operation of enterprises is more difficult".

    At the same time, some enterprises said: "the staff overtime control is too dead, the overtime time of one month can not exceed 36 hours, which not only dampens the enthusiasm of employees, but also causes enterprise orders to be postponed, causing great distress to enterprises".


    At present, small businesses are greatly influenced by the implementation of new laws. They can only think of ways to deal with them positively, such as minimizing overtime, saving labor costs, strengthening staff training, improving their work efficiency from quality and skills, introducing new equipment and new technologies, improving automation, and controlling costs from the perspective of energy saving, labor cost saving and safety.

    A person in charge of an enterprise said, "we can strive to use machinery instead of people, instead of labor by automation, so as to save manpower and material resources".


    In the survey, enterprises are improving the quality of products, controlling the materials used for auxiliary materials, and reducing the strength of inferior products.

    At the same time, the energy cycle is used several times, such as a production screw company, when cleaning products, improve the utilization rate of diesel oil, save costs and reduce waste.

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