New Labor Law Greatly Improves Manpower Cost

In the past week, many owners of the home industry chain have been busy with one thing, namely, studying new labor laws, modifying the company system and signing employee contracts, because the legal environment is different after next January 1st.

In the interview, the reporters found that the implementation of the new labor law seems to be more alarming than the increase in the price of raw materials and labor costs, because the development of the home industry over the years has been dependent on the low labor cost and the end of the cheap labor era. For a less stringent industry and a large number of informal enterprises, it means death without qualitative change.

The new law is poked in the industry

In January 1, 2008, the People's Republic of China labor contract law (hereinafter referred to as the new labor law) will come into effect.

This is not good for home enterprises which are characterized by low cost and labor-intensive development. Even many bosses regard it as a big hole in the year and a real "labor robbery".

"If you manage regularly, you may get a little easier. If business management is always in a mess, you may turn over and even get bigger trouble."

When it comes to the impact of the implementation of the new labor law on the industry, a boss shakes his head and sighs.

Because cheap labor has always been one of the important weights for these enterprises to survive and develop, and the new labor law has just stamped the hole.

Faced with the same regulations, both employers and employees are delighted, but one is gloomy and gloomy.

Insiders told reporters that if the existing labor and capital system was completely adjusted according to the new labor law, "upstream and downstream enterprises such as stores, building materials, home furnishings, furniture and so on could not run, and the cost of manpower and management costs had to go up on a large scale.

The new regulations certainly protect workers, but many provisions do not have judicial explanations or explanations are not detailed enough.

It is very difficult for enterprises to have a loophole, and it is really a headache for enterprises.

It is understood that the emergence and development of the furniture industry in Beijing is less than 20 years, and the history of home furnishings and stores is only ten years old. Even the regular army, it is difficult to equate it with modern enterprises.

In the entire home industry chain, "signing contracts and getting insurance is only two years' experience, and the proportion of people who can get such treatment is very low."

Most people are "hanging". Anyway, everyone is like this. "Love it!"

However, from next year, enterprises can no longer be so arrogant.

Because, in the future, no contract, no insurance, equal pay for work, deduction of wages by various names, and arbitrary dismissal will all be illegal.

These are one of the common problems in the industry.

Substantial increase in manpower costs

Insiders predict that in 2008, the cheap era of China's labor force will be officially terminated.

Because the purpose of formulating the new labor law is "to perfect the labor contract system, clarify the rights and obligations of the parties to the labor contract, protect the legitimate rights and interests of labourers, and build and develop harmonious and stable labor relations".

And its introduction and implementation also blocked many loopholes in employment and enterprises had to act according to law. When the interests of workers were protected, the most direct representation of the implementation of the new labor law to the industry was the sharp rise in labor costs.

Take the home decoration industry in Beijing as an example, many designers did not sign labor contracts.

They take a few hundred yuan a month's basic wage, if can complete the enterprise stipulated quantity of work, then can get the Commission, besides, on them the enterprise's expenditure may be zero.

But in the future, according to the new labor law, the total monthly cash payroll of rural employees in Beijing should not be lower than the current minimum standard of 730 yuan / month in Beijing, and enterprises must provide five insurance for their old age, unemployment, work-related injury, childbirth, and medical treatment, and enterprises will only spend more than 380 yuan per person per month for this type of employees.

If their employees own Beijing's urban household accounts, the insurance withholding base is higher and the company's expenditure is higher. With the increase of the average wage in society, this base is increasing every year.

Apart from these accounts, staff turnover will also become one of the burden of enterprises with the implementation of the new labor law, because they may turn from no expenditure to large compensation.

In addition, the recruitment of enterprises will be more cautious and training will become commonplace, which will increase the manpower cost of enterprises to a certain extent.

It is estimated that enterprises with different types and different formal degrees will have to increase their cost by at least 17% or more.

The rule of law is equal to all.

With regard to the implementation of the new labor law, the enterprises that used to operate normally have welcomed their hands. They think that they have finally waited for a fair market environment. "Those who do not abide by the law and do not abide by the rules can no longer compete at low prices by drilling loopholes and irregularities."

At the same time, the high expenditure will also make some enterprises that earn small profits entirely from cheap labor hang around the edge of life and death.

A boss said, "despite the fact that in the past few years, we began to implement full contract system and bought insurance for most employees, but after the new law was put forward as a hard target, I was really under a lot of pressure."

His strategy is to use modern equipment to realize process reengineering, so as to reduce the amount of labor and effectively control costs.

In addition to controlling the number of employees, enterprises also say that they will outsource some businesses, such as advertising, supervision, and even "design can also go out alone".

Although the policy is fair to all enterprises, the industry is not worried about the fairness and intensity of law enforcement.

After the implementation of the new labor law, Brand Company will surely become the benchmark of regulation, and for small companies and guerrillas, supervision is very difficult. If the industry regulation is not balanced, the huge cost difference will have a great impact on the brand enterprises.

Chen Hui, chairman of the East Yi yrisheng & Yide legalist school, put forward his own confusion.

The industry generally believes that the increase in the cost of the industry will accelerate the industry shuffle, the extensive mode of operation of the company will be out, and the pressure of the low and middle end companies will increase.

Wang Yiming, director of the personnel management research center of the China Talent Research Association, said that enterprises should face the new law with a positive attitude rather than avoid it.

For many enterprises, low cost has always been the only competitive advantage, but there will be no other advantages in the future, so it is difficult for enterprises to make further development.

He believes that in the future, the employment of enterprises must be pformed from low cost, low quality to high cost and high quality, and human resources management should be more advanced.

Postscript

Recently, reporters interviewed a large number of business executives, but unfortunately there are few people who can tell the doorway.

Although it has not been implemented for several days from the new labor law, many people have not done in-depth research on the new law, so there are no specific measures to deal with it.

Is the protection of workers from other places turned over to the original nationality through labor export? Or is it settled locally?

At present, there are no good ways to recognize it.

More sad is that industrial workers themselves have little knowledge of contracts and social security.

Some enterprises have proposed to buy insurance for their employees, but they have been opposed to it because they are understood to be "deducting money and not paying benefits".

There are also outspoken enterprises that the implementation of the new law will cause difficulties for the operation of the enterprise, because "it can not be casually dismissed."

In fact, a big law that is beneficial to people's livelihood will inevitably have some shortcomings.

If we want to put the law into practice, truly protect workers, and enable enterprises to provide labor opportunities to accept, reasonable refinement is what everyone wants to see.