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    Shoe Factory Owner "Run The Road" Local Government Becomes "Scapegoat"

    2008/11/15 0:00:00 71

    In the recently closed family

    A shoe factory

    Outside the gate, two migrant workers launched a heated discussion on the social contractual relationship between the rapid development and change of government and labor in the hinterland of China's manufacturing industry.

    Xu Miao asked, "I have worked here for 6 years, and the others have worked for more than 10 years.

    Who will compensate us? "

    Xu Miao turned out to be Wei Xu in Dongguan, a large manufacturing center in southern Guangdong province.

    footwear industry

    (Weixu Shoe Factory) work.

    According to the law, Xu Miao can get 1 months' compensation every 1 years.

    Xu Miao's boss fled in November 1st, leaving more than 4000 employees who did not get paid for at least two months and suppliers demanding repayment of 100 million yuan in debt.

    "This is not a state-owned enterprise."

    Taxi driver Gao Shen GUI retorted, "you should not trouble the government.

    This is a problem between you and the private sector. "

    In the face of the impact of the global economic slowdown on factories that flooded the world with cheap Chinese goods, Guangdong's local governments in the Pearl River Delta region increasingly accepted Xu Miao's view.

    When the economy is active, the government of the Pearl River Delta, which accounts for 1/3 of China's total exports, often takes a laissez faire attitude towards industrial disputes.

    But now they find themselves at the forefront of China's economic slowdown, and have adopted a more aggressive stance to prevent possible social unrest in the backyard.

    The emergency pay fund for wages owed to employees is being set up, and government officials are actively monitoring the factory so as to find the factory before bankruptcy.

    Qiu Quandong, a spokesman for the Shenzhen Special Administrative Region government, said: "some factory owners have gone away and local governments have to repay their debts."

    In addition to the Shenzhen government's 50 million yuan emergency wage protection fund for arrears of wages, each district government has set up a 5 million yuan wage arrears fund.

    Despite the increasingly desperate measures taken by the government, there is still widespread debate over the true size of the problem and how much responsibility the global economy should take.

    Over the past year, the number of factory failures in the Pearl River Delta has been increasing.

    The initial fuse included the steady appreciation of the renminbi against the US dollar and the rising cost of labor and raw materials.

    Guangdong's exports are still growing, though the growth rate is lower than last year's 22.3%.

    In the first three quarters of this year, the export volume of Guangdong increased by 13.5% to 301 billion US dollars.

    clothing

    The smaller factories in the field of plastic products and toys were hit most.

    Local government officials acknowledge that in recent months, with the global financial crisis beginning to affect the demand of overseas consumers, and then the order of Chinese made products, the bad situation has become worse.

    Xiong Xiaoping, deputy district head of Longgang District, Shenzhen, said: "every year, factory owners who do not pay to workers and suppliers intentionally abscond each year, but the number of factory closures this year has increased by about 20%, most of which are small and medium-sized enterprises without independent brands or core technologies."

    Xiong Xiaoping's Longgang district has 4 million migrant workers, accounting for more than 90% of the local population.

    In the past two months, the district government has paid 20 million yuan in compensation for emergency workers.

    However, the assistance provided by local governments is limited.

    Although government officials quickly paid their wages in the budget, they were unwilling to accept overtime or dismissal costs.

      

    Wei Xu shoe industry

    Fan Tianhua, an old employee who has worked for 20 years, said: "we can only wait for the equipment and land of the government auction companies."

    Now he and other workers spend time in the park opposite the town government office, waiting for news from government officials who supervise the liquidation of factories.

    "Finding jobs elsewhere is no problem."

    Fan Tianhua said, "we just want to get back the money that Wei owes us."

    He pointed out that other factories are still looking for manpower.

    Xiong Xiaoping said that workers had priority claims for liquidation income, followed by local tax arrears.

    The last ones are banks and other creditors, some of whom are taking over the problem themselves.

    In Dongguan,

    Wei Xu shoe industry

    The supplier stayed at the factory gate all night, worried that the company's assets might be stolen.

    Cheng Dafa's plastic products company is

    Wei Xu shoe industry

    One of the 100 suppliers who owed their debts.

    "There are 2 million yuan worth in the factory," he said.

    Finished shoes

    We are very concerned about their problems. "

    "We stay in front of the factory at night because we believe that someone may want to steal them.

    Government officials have been trying to evacuate us, but we will come back to take care of them. "


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