Guangdong Wage Doubled Shoes Enterprises Can Not Afford To Eat

A research report on the doubling of urban and rural residents' income in Guangdong has pushed Guangdong's wage growth plan again to the cusp of the storm. The government has defined the wage multiplier plan. This year's wage base line is 14%, and the response of the ordinary people is a little anxiety in expectation. Because the wage payer is not the government but the boss. Companies want to raise wages for their employees, but rising prices have also brought cost pressures to them. The voice from the public and experts is that the government should "drain water" to "raise fish": first of all, let the enterprises relax in the tax revenue, and the enterprises will be able to raise their wages.

Wage doubling plan:

At the beginning of this year, Guangzhou announced the wage multiplier plan according to the deployment of the province: from 2008 onwards, the average wage of the city's workers increased by more than 12% every year. By 2012, the average wage level of the workers in the city was quadrupled than that in 2000. Not long ago, Guangzhou issued the annual corporate wage guidance line, the first time the wage doubling plan was written in red tape. Statistics Department data show that in 2000, the average annual wage of the staff in Guangzhou was 18974 yuan, according to the goal of quadrupling, the average annual salary of the employed staff would reach 75896 yuan by 2012.

Han Zhirong, director of the wage Office of Guangzhou labor and Social Security Bureau, explained that 14% of this year's wage growth baseline is a complementary measure for Guangzhou to push ahead with the implementation of the wage multiplier plan. Although the two policy is not mandatory, it also shows that the government wants to be hard in terms of wage growth. Guangzhou has proposed that, starting from 2008, the state-owned and state holding enterprises will record the wage adjustment plan to the labor department within 30 days after the release of the wage guidance line.

The government still has the mace in hand, that is, the minimum wage standard. According to the plan, Guangdong strives to adjust and raise the minimum wage standard for three consecutive years starting from 2008. Once the company fails to execute, you will not discuss the penalty.

No more companies complain: the cost of manufacturing retailing is too low.

A person in charge of the Guangzhou Footwear Industry Association yesterday revealed its own "difficulties". Because of the influence of RMB appreciation and so on, the profit of most shoe making enterprises in Guangdong has dropped by 3 to 5 percentage points. The shoemaking industry itself has a profit of only 10%~15%, and this is even less profitable. "How can we raise wages if we lose so much profit?" Reporters also learned from the relevant private sector Association of Guangzhou City, Guangdong clothing, toys, leather goods and other industries this year has further tasted the taste of reduced profits. Besides, high land prices and taxes also "divide" the profits of enterprises.

"A lot of companies look at workers and run to Wenzhou, but they can't afford to raise wages." Cai Daorong, executive director of Guangzhou private chamber of Commerce, said yesterday that the monthly wage of Guangzhou manufacturing private enterprises was between 130 yuan and 1500 yuan, but Wenzhou and other places were higher than Guangdong's 200 yuan to 300 yuan.

Guangzhou's retail industry is also facing the pressure of "rising wages". A supermarket official said that now Guangzhou retail industry staff "flow is not smaller than the shoe factory". Since March and April this year, many supermarkets have raised their salaries from 50 yuan to 200 yuan. At present, the wages of the supermarket retail industry are almost floating at the level of 1100 yuan to 1300 yuan a month. This has reached the "limit" of many supermarkets, because the industry itself is also a small profit industry.