The Textile Industry In Belgium Faces Multiple Pressures

Belgian textile and furniture industry association Fedustria believes that in order to enhance the competitiveness of the industry, we must re-examine the wage system which is automatically adjusted with prices. The Fedustria association president Fa Quix pointed out that Belgium's textile industry is facing many serious challenges.

In the first quarter of 2010, the output increased slightly by 5%, but this was compared with the first quarter of 2009, when the output fell to the bottom.

2009 the annual output dropped by nearly 20%, and it was reduced by about 8% in 2008.

Fa Quix chairman did not believe that the slight growth in the first quarter would last until the second quarter, because the confidence of consumers and producers was hit by the Greek crisis.

The number of unemployed people in the first quarter did not increase, which was the same as that in 2008 and 2009. However, in the past two years, a total of 5000 people in the textile industry lost their jobs, mainly because of the reorganization of their organizations and personnel.

Fa Quix chairman is moderately optimistic about the future, because Europe's economy has recovered slightly. Europe is a major market for Belgium's textile products, and nearly 85% of its products are exported to Europe.

Second, the decline in the euro exchange rate makes the competitiveness of exports more competitive.

However, it is necessary to reconsider the automatic mechanism of wages rising with the rising price index.

At present, Belgium's wages are 3.5% higher than those of Germany, Holland and France, and the three neighbouring countries are Belgium's major exporters and main competitors.

Fedustria appeals to the employers' Association and the Labour Association to revise the mechanism of automatic pay adjustment in order to increase Belgium's competitiveness.

Fa Quix points out that the biggest threat to the Belgian textile industry comes first from raw material prices and wage increases, followed by a lack of confidence in consumers and a reduction in consumption, affecting the recovery of the European economy.

Finally, we are worried that the global economic recovery will not be tested, and we will have a new economic crisis again.