Imbalance Between Supply And Demand Of Labor Force

Korea Youngone

Trading company recently

A protest uprising by local workers demanding a pay rise has occurred in factories. The situation has eased slightly and some factories have started work again, but the local business people are still very upset because they do not know when they will break out again.

Another family in Hu Zhiming, Vietnam.

Not long ago, the average salary of local staff was raised by about 20% in line with the local government's minimum salary increase. However, due to the close to the end of the year, the local consumer price index has risen by nearly 11%. Employees have raised the requirement of raising wages according to the price increase, and the number of newly added foreign enterprises has increased recently. The demand for labor will increase significantly.

Recently, South Korean enterprises stationed in Southeast Asia are facing the difficulties of local workers in raising manpower, demonstrating and protesting.

At present, factories are set up in Southeast Asian countries.

There are more than 40 in Burma, more than 30 in Philippines, more than 120 in Vietnam, and 30 in Kampuchea.

Another basis

The Federation pointed out that more than 700 illegal strikes took place in Vietnam in 2008, and the Vietnamese government was usually in a passive position against the foreign labour disputes faced by the local factories.

Since 1990s, operators have set up factories in Southeast Asian countries.

Because of the cheap labor, Korean enterprises that originally set up factories in China moved to factories.

In recent years, it has turned to Burma and Bangladesh, but even in Asia, the lowest wage level in Bangladesh has also led to a protest uprising demanding salary adjustment, so that factories in Southeast Asia are facing the threat of losing the "last bastion" and have no idea where to go.

South Korea's Korea trade and Investment Promotion Agency (KOTRA) analyzed that the main reason for the recent wage increase in cheap labor countries is the imbalance between labor supply and demand.

The price increases in major metropolises, such as the increase of prices in major metropolises, made it impossible for the workers in counties and cities to go back to the nest because of their expectation of going to cities for jobs, resulting in a serious shortage of labour. In addition, enterprises such as China, Hongkong and Taiwan went to Southeast Asia to set up factories and scraped up a lot of labour. If the industry was eager to catch up, they would delay the delivery if they did not cooperate with the requirements, which had greatly weakened the bargaining power of the industry.