How Should Leather Enterprises Cope With "Pay Rise Tide"?

In recent years, prices have risen, oil and gas have risen, prices have risen, and wage increases are spreading.

It is rumoured that this is the most severe "wage surge" in 30 years.

Through the baptism of financial crisis, China's leather industry has gradually entered the recovery channel from the second half of 09 years.

However, the leather industry is ushering in a new challenge.

Coupled with the appreciation of the renminbi, economists from both China and Singapore put forward a clear view.

"In the face of the pressure of RMB appreciation, the way to raise wages is more effective than the appreciation of the local currency to solve this problem. This is the conclusion drawn from our normative mathematical model."

Salary increase

Pearl River Delta leather enterprises under "rising salary tide"

Guangdong is a major manufacturing province in China, and most of the cities have representative industries, such as Guangzhou leather and leather making.

For these labor-intensive industries, the demand for employment is relatively large. Since the 2010 spring, recruitment difficulties have swept the Pearl River Delta.

The occurrence of labor shortage is bound to affect the development of leather enterprises.

At the same time, raising the minimum wage will also increase the cost of enterprises, which is more likely to trigger a shuffle of manufacturing industry. Small businesses are burdened with burdened efforts.

Leather enterprises in Wenzhou under the tide of rising wages

According to statistics from an employment agency in Wenzhou, wages in most factories in 2010 have risen by 20%.

It is understood that in the relatively developed areas of Jiangsu and Zhejiang, the wages of workers are mainly determined by the city.

Judging from the upgrading of industrial structure, the "wage surge" forced Wenzhou leather and other manufacturing industries to face pformation.

China's densely populated structure and labor structure, coupled with low labor costs, has quietly pformed and upgraded enterprises.