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    Footwear Companies In The Pearl River Delta Have Been Affected By The Pay Surge, Claiming That Businesses Are Becoming More And More Difficult To Do.

    2010/7/23 9:54:00 30

    Pearl River Delta Salary Increase Foxconn

    On July 23rd, Mr. Xu from Taiwan opened a factory in Dongguan, Guangdong for 14 years, mainly producing christmas colored balls, Christmas ornaments and so on. Almost all products were sold to Europe and America.

    He said frankly, "business is becoming more and more difficult."


    "Shenzhen

    Foxconn

    Pay rise and

    Foshan Honda

    After the strike, the workers' mentality changed.

    Now the workers are hard to recruit, and the wages demanded are high. The enterprises around me are very badly off.

    He said.


      

    Pearl River Delta

    Because of its huge manufacturing capacity, it is known as the "world factory", and Hong Kong funded and Taiwan funded enterprises are the first to enter the Pearl River Delta and to drive the rapid development of local manufacturing industry.

    But after the financial crisis, the changes in the operation environment of the Pearl River Delta have doubled the pressure of Hong Kong and Taiwan enterprises.


    A recent survey by the Chinese manufacturers' Association of Hongkong on 222 member enterprises operating in the Pearl River Delta shows that the rise in labor costs ranks first in the most disturbing factors for Hong Kong enterprises.

    In addition, the rising prices of raw materials, additional costs and risks caused by labor regulations, and the risk of RMB exchange rate changes have brought heavy pressure to the operation of enterprises.


    The survey shows that 60% to 80% of Hong Kong funded enterprises believe that the above factors have caused "serious" or even "very serious" effects.

    The low labor force was once a magic weapon for attracting foreign investment. At the moment, more than 90% of the respondents said they were troubled by lack of jobs.


    At the same time, the local government's requirements for improving workers' treatment are more clear.

    In May this year, Guangdong began to implement the new minimum wage standard, with an average wage increase of over 21.1%.

    Under the impetus of the trade union, the collective wage consultation system is also being pushed forward in the whole province.


    "In fact, in recent years, some enterprises are preparing to move out of the Pearl River Delta, but the Foxconn incident has intensified the process.

    Now many Taiwanese enterprises are waiting to see the subsequent impact of this matter and reassess the living environment of enterprises.

    Cheng Fengyuan, President of Guangzhou Taiwan Funded Enterprises Association, said.


    Cheng Fengyuan has his own industrial Jiaxing decoration materials Co., Ltd. he had not considered relocation before, but recently he decided to build a new factory in Chaohu, Anhui Province, and then move some of the production lines after completion.


    "The cost there will be much lower.

    In terms of wages, the average wage of factory workers in Guangzhou has reached 2500 yuan to 3000 yuan, but it is estimated to be only about 1500 yuan over there.

    Of course, I will not move all the industries, because the Pearl River Delta has very complete industrial support and very convenient traffic conditions.


    Liang Yaohua, a Hongkong based Guangzhou Tian Chong shoe industry Co., Ltd. has been expanding rapidly in recent years, but it is also facing the pressure of recruitment difficulties.

    "Since the Spring Festival this year, 1200 people have been recruited, but 998 have also left.

    We plan to raise staff salaries by 18% or so in the near future.

    wages

    There will be a substantial increase. "

    Liang Yaohua said.

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