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    How Should Enterprises Cope With Artificial Rise?

    2010/6/4 9:32:00 40

    Artificial Rise

    At present, enterprises in many places are faced with the problem of rising wages.

    Economists believe that local governments and manufacturing enterprises should take precautions against them and respond positively to artificial rises in a variety of ways to better adapt to the trend of industrial upgrading.


    The front-line production workers of enterprises are ushering in a wave of pay rise, which will bring cost pressure to China's manufacturing industry in pition.

    Yesterday, our reporter interviewed several manufacturing executives, who said they had prepared for a pay rise.

    The regional economic experts interviewed said that this is the inevitable result of China's economic development to a certain extent. Local governments and manufacturing enterprises should take precautions against them and actively respond to the artificial rise by various means.


    Cai Xiaomei, senior manager of Guangdong Zhitong talent chain Limited by Share Ltd, said that the company's salary increase mainly depends on two factors, one is the salary standard of the whole industry, and the two is the enterprise's own salary adjustment plan.



    Li Xiongwen, general manager of Yuexiu human resources consultant, said that the general peers will see the action of leading enterprises, and the industry's leading salary increase will play a leading role in the whole industry's wages.

    For example, the leader of electronic enterprises has recently announced a 30% increase in wages. If the peers do not follow the promotion, they will not be able to recruit people.

    Industry experts predict that the wave of wage increases in the manufacturing industry may start with the electronics or automobile industry. Workers can see clearly that wages will not come if wages are low.


    Yesterday, Guangdong Dafu Motorcycle Co., Ltd., responsible person told this reporter that their company is also raising salaries for employees.

    "You can't get people without a raise.

    The minimum wage for front-line workers has risen from 1200 yuan to 1300 to 1500 yuan, with an average increase of 10% to 20%.

    Now the front-line workers get more than 1800 yuan a month.

    He told reporters that in the Changhong Ridge Industrial Park, Dali, Foshan, where the company was located, "even the worst companies were paid more."


    Enterprise response


    One way


    Take precautions and actively cater for industrial pformation


    Zhang Ming, a regional economic planning expert, told our reporter that raising salary is a stage that must be experienced by the economic development to a certain extent. The pains and opportunities brought by enterprises are also present at the same time. Enterprises should take the initiative to cater for this pformation so as to gain more room for development.

    Professor Yang Ying, School of economics, Jinan University, said that the increase in wages is bound to increase the cost of business, but it is also an opportunity for China's manufacturing industry, and perhaps to a certain extent, to promote industrial upgrading.


    CHIGO company told reporters that although wages are an important factor for workers to choose their boss, it is not a necessary factor. Whether they can give employees humane care and whether they give employees a broader stage? These are becoming more and more attractive conditions for the new generation of migrant workers.


    Method two


    Introducing technology to reduce dependence on labor


    Zhang Ming said that in the Pearl River Delta and the Yangtze River Delta region, the labor quality is high, the industrial chain is highly coordinated, the information is developed, and the pportation is convenient. Of course, the cost of labor is also higher than that of the mainland. Enterprises can put their information, research and development, sales and other centers in these places, and their production plants can move to the periphery or to the mainland.


    In addition, technological upgrading is also one of the ways for enterprises to reduce dependence on manpower by introducing high technology production lines.

    More importantly, enterprises should move from low-end industries to high-end industries with high added value and pform from producers of manufacturing products to creators of products.


    Dongguan Ying Qi, an export oriented garment enterprise, has recently begun to invest in hundreds of computer looms in a huge amount, which is equivalent to 2.5 times the working efficiency of a handloom, and one worker can operate 8 machines at the same time, and each computer loom may save 30 workers.

    Textile quality has also been greatly improved.


    Method three


    Build your own brand


    Zhang Ming also said that many enterprises in China's manufacturing industry are purely OEM and earn cheap processing fees by cheap labor costs. At this time, enterprises should consider creating their own brand and sales network.

    Otherwise, labor costs will increase and enterprises will be difficult to survive.


    It is reported that at present, some foundry enterprises in the Pearl River Delta have begun to build their own brands. Most of the enterprises in Dongguan's Dalong Town, the world's wool weaving village, operate on a labor-intensive, purely OEM mode. However, more than 90% of the enterprises are ready to set up their own R & D design department. Some enterprises have begun to open stores and develop franchisees in major cities across the country, so as to make marketing plans for their own brands and expand the domestic market.


    Some experts also said that at present, some labor-intensive enterprises really have small profit margins, and the possibility of pformation and upgrading in the short term is not large. The government can allow enterprises to increase their salary space by reducing taxes for enterprises and create conditions for the pformation of enterprises.

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