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    Labor Shortage Will Trigger A New Round Of Business Shutdown

    2010/5/6 17:18:00 37

    Staff

    When it comes to recruitment, Humen Bo, Dongguan.

    Industry

    Liao Fei, the boss of Li Xin garment factory, is at a loss.

    Seeing that half of the machines in the factory are empty, even if he holds the order in hand, he can only look at the "single" sigh.


    "The factory needs 100 workers, from the end of the year to now, less than 50 people, wages have risen by 30%, how do you say we survive?"

    When Liao Feiyi opened his mouth, he complained to our newspaper reporters.


    In Dongguan, it is not uncommon for enterprises like Li Xin garment factory to encounter employment problems.

    Beginning in April 5th, the China Times reporter had multiple townships in Guangzhou and Dongguan.

    Industry

    Dozens of enterprises in the district visited and felt the urgency of "world factory" craving for employment.


    Take Humen town of Dongguan as an example.

    clothing

    The town, known as the capital, has more than 50 thousand business licenses, including 44121 self-employed households, 5083 domestic and private enterprises, 1142 foreign investment and processing enterprises.

    Conservatively estimated that the town lacks 50 thousand workers, and Dongguan has 28 such townships.


    The situation in the Pearl River Delta is also not optimistic.

    This reporter found through in-depth enterprise visits, the vast majority of enterprises lack of work in three or four people, of which less than half of the work accounted for 1/3.


    Tan Bingcai, director of the Guangdong provincial government development research center, said that on the face of it, the economic rebound and the pick-up of orders were the fuse for recruitment. But the underlying reason is that the era of cheap labor is gone forever.


    However, hidden in "

    Labor shortage

    "The contradictions behind the appearance make people even more worried.

    The sharp rise in labor costs has left the small profits of foreign trade enterprises on the steel wire, and any wind and grass will lead to the rapid collapse of enterprises.

    Many of the bosses surveyed believe that by the end of the second half of the season, there will probably be a new round of closure.


    In the peak season, it loses one hundred and fifty thousand in one month.


    Last year some people had no orders, but there were no orders this year.


    Walking on the streets of Dongguan, there are large and small recruitment notices everywhere.

    On the Changping Road in Dalang Town, a woolen spinning factory called Ollie, a vertical hanging advertisement, especially attracted people's attention. The 6 floors of the "red carpet" with a large number of recruited male and female general practitioners is particularly eye-catching, but the door is cold and clear.

    At the gate of a factory opposite the factory, there is also a recruitment card, which promises to "wrap up and pay regularly."


    Luo Wenmin, the boss of the beautiful computer embroidery factory, told our reporter that due to the accumulation of orders, they started work in the first ten years of the new year.

    The factory needs about 1000 workers, but at that time there were only two working lines, which had been recruited from the new year, and 3 months later, the factory still lacks more than 100 workers.

    "How much can it be?"

    Luo Wenmin said.


    Chen Liang Chang, Guangzhou new bright clothing Development Co., Ltd. told this reporter that every year is the peak season for production. At this time, enterprises can make a profit of fifty thousand or sixty thousand. But this year, because of the rising cost, the factory was not profitable in March. Instead, it dropped 150 thousand, and the living space of enterprises was getting smaller and smaller.


    Statistics from Dongguan Labor Bureau show that since the second half of 2009, recruitment difficulties have been widespread in Dongguan, especially in the electronics and footwear industries.

    clothing

    At present, there are about 150 thousand local jobs.

    The present "

    Labor shortage

    "It's not just a cold in Dongguan. The whole Pearl River Delta is shaking."

    According to the sample survey conducted by the Labor Department of the four cities in Guangzhou and Shenzhen, the labor gap of the four cities is up to 1 million 200 thousand.


    But "outsourcing".


    In the face of "single unmanned" situation, some enterprises began to pfer part of their orders to factories in the mainland.


    Luo Wenmin has realized that the era of recruitment difficulties in Dongguan has arrived, and it will still be difficult for many companies to raise salaries.

    Exit

    The impact of enterprises is also great, so the best way is to outsource the remaining orders.


    Luo Wenmin gave the reporter an account. At present, a worker in Dongguan has a salary of 2000 yuan a month, while the salary of a worker in the mainland is only 1300 yuan.

    From the knitting factories in Dalang, if the processing fee is 12 yuan a dozen, the price of 7 yuan to the mainland can be completed, and some commission can be earned from it.


    Reporter survey found that in Dongguan, many factories can not find workers and continue to rush orders, will order to those who have a large number of workers but lack of orders, including factories in Guangxi, Hunan and other places.


    There are also some powerful enterprises that simply take into account the operation of factories in the mainland, or simply remove factories from Dongguan to solve the problem of "raising wages is still difficult to recruit".


    "Tomorrow I will fly to Cenxi, Guangxi to attend the Establishment Ceremony of a branch factory there."

    Ceng Tianren, chief executive officer of Maoming group, told our reporter that in addition to Dongguan Ying Qi Industrial Co., Ltd., located in Dalang Town, Maoming group has set up 4 branches in Guigang, Pingnan and Cenxi in Guangxi, so as to divert the production pressure of Dongguan base.


    Since last year,

    financial crisis

    More than 600 thousand migrant workers left Dongguan due to factory closures or difficulties in starting businesses.

    The closure of factories and relocation also made some migrant workers no longer choose to return to Dongguan, which is also the cause of Dongguan.

    Labor shortage

    One of the important reasons.


    The second half or the closing tide


    In recent days, our reporter has conducted a thorough investigation of several towns and streets in Dongguan, such as Houjie, Changan, Humen, Dalang, Fenggang and Nancheng.

    Labor shortage

    An intuitive feeling is that in addition to the obvious increase in wages of enterprises, matching living conditions have also improved significantly.

    This, to a certain extent, marks the end of a long period of cheap labor in Dongguan and Guangdong province.


    For a long time, the Pearl River Delta processing trade enterprises have maintained a very fragile ecological chain, many small and medium-sized enterprises.

    Exit

    The processing enterprises rely on the upstream large processing enterprises to survive at different levels. Whether they are raw materials processing or contract making, the profit distribution has reached the thinnest link.


    And the rise in labor costs is likely to become the last straw in the camels.



    After 10 years of processing plants, Luo Wenmin called this year the most difficult year.

    The cost of labor has risen by 30%-40%, and the price of raw materials has not dropped. The profit of the processing industry has been very thin.


    Liao Fei told reporters that Dongguan's economy began to pick up in the second half of last year, but the bankruptcy of factories and staff's pay were frequent.

    A South Korean boss has suddenly disappeared, arrears of more than 80 employees total wages of about one hundred thousand yuan, but also owed the landlord five or six months of rent.


    It is understood that Dongguan factory owners will be able to give workers a month's wages.

    Liao Fei said that although most factories are under construction, many factories are losing money.

    6, in July, if the off-season is coming, orders will be reduced. Once the funds are not working properly, the boss can only choose to disappear.

    Therefore, by the second half of this year, all kinds of contradictions will erupt.

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