Guangdong Dongguan Manufacturing Enterprises Broke Down

After a toy factory in Dongguan collapsed, employees packed their bags and left the factory.

Some small and medium-sized enterprises are facing some pressure.

A few days ago, the veteran toy enterprise "Su Yi" and the textile enterprise "Ding Jia" suddenly collapsed.

Recently, this newspaper received many complaints that the factory owner had no choice but to pay wages.

The industry said the toy industry textile industry "cost hit and shut down" the "worst hit".

The two cold wave is coming?

Part One

With the senior toy company "vegetarian" and Textile enterprises The sudden collapse of "Ding Jia" has caused the worry of a "cold wave of manufacturing industry" once again attacking the whole manufacturing industry in Dongguan. In the past half a month, the news of Dongguan's news hotline has increased more than twice as much as the bankruptcy of enterprises or workers' wages. Textile Industry Association said that this round of manufacturing difficulties led to 10% of Dongguan's textile enterprises overwhelmed, and even in a short time to see signs of cloud and moon. Whether SMEs will repeat the 2008 cold snap? Manufacturing industry is alarmed and expects the situation to improve.

The boss takes the salary of the employee.

prominent Manufacturing industry dilemma

Character one

Du Dade: Senior Manager of Dalang Hong Shi Da Furniture Co., Ltd.

Du Dade is a senior manager of a furniture factory. At present, he has lost his job, and he and his staff of more than 30 have not been paid. In charge of factory production, he complained to this newspaper, hoping to help him and his workers to safeguard their rights. At least get the salary you should get.

Du Dade said that his furniture factory is a relatively large factory, with an area of more than 8000 square meters and a staff of nearly 100 people, usually maintained at around 60 people. It is the most common export oriented small business in Dongguan. It mainly receives orders from the United States and supplies some small furniture stores to the interior.

"It has been in arrears for more than 3 months." Du Dade told reporters that he himself was the vice president of the factory's chief executive and was regarded as a senior management. But even so, on the issue of arrears of wages, he and ordinary employees encountered the same.

Du Dade, a Nanchong native in Sichuan, has been working in furniture production for some years. Du Dade as Dalang The chief executive of Hong Shi Da furniture company was paid 2 yuan in arrears in three months, and other employees were defaulted for more than 13 yuan.

"This time, the boss walked, the factory closed down, I was a bit unexpected." He said that although he had prepared for negotiations with his boss for a long time, he did not expect his boss to do so. "Let's wait for him to pay his wages, but at the end of the day, he walks away." He said that in July 11th, the boss sold the factory to others and fled.

He said that he and other middle managers did not expect that the boss said he ran away and didn't have a harbinger of forewarning.

Yesterday, he and his staff came to the village committee meeting where the factory was located, hoping to solve the problem as soon as possible. The local village committee has also stepped in and has come up with a set of solutions.

"The wages of ordinary employees have been paid by the villagers committee, but the salaries of our middle managers and others have not yet been paid." Du Dade said, "the furniture industry this year's market is not very good, the profit space is compressed at least 10%, if the boss is not well managed, it is easy to have problems." He said, according to the current situation of his factory, there is still a profit, but why did the boss walk the guy, in arrears of wages, he also a bit hard to understand. {page_break}

Character two

Mr. Tian: staff of Liaobu Ling Tong paint company.

And Du Dade almost simultaneously encountered business failure to join the payroll industry, and Mr. Liaobu Tian Ling paint company. Mr. Tian worked in the paint company for 8 years, but Mr. Tian found that Mr. Lu, a factory owner, was "missing" last Monday. He had not paid more than 2 months with himself and 10 other workers.

Mr. Tian is from Hubei. She came to Dongguan in 2003 to work in a factory called "Ling Tong paint company" in Liaobu Town, Xia Bian village. The factory was mainly made of advanced paint, and had more than 40 employees. It has been doing well for several years, and every month Mr. Tian can get two thousand or three thousand yuan salary. So a few years ago, he sent his wife and children to Dongguan. But just a few days ago, the factory suddenly collapsed and he lost his job.

Mr. Tian, who had worked for 8 years, had never expected that the factory that had made a good profit has been laying off workers for the past two years. Last Monday, Mr. Tian found that even Lu, the factory owner, was "missing". He had not paid more than 2 months with himself and other 10 workers. More than 10 workers are beginning to be as anxious as ants on a hot pot. They do not believe that their boss will suddenly disappear after 8 years.

In desperation, the workers found the village committee, and the reply was the boss. Under the intervention of the labor department, the village committee finally found Lu boss. He borrowed about 100000 yuan from his friends and family to settle the wages of over 10 employees. However, what is dramatic is that when Mr. Tian went to the labor department to reflect the situation, he ran into a group of Hubei townships. They also had to be sent to the labour bureau because they were in arrears with their wages. "They are all small factories that make knitted fabrics and make toys. I didn't expect a fellow villager to know him. Mr. Tian said with some self mockery.

The day before yesterday, Mr. Tian had left Dongguan for home in Hubei. He told reporters on the phone that last week, Lu boss had sold the factory to the current boss Wang because he could not manage. Because of fear of the old creditors going home to collect debts, Wang boss dismissed all the workers and stopped working for three months. "After all, I've been feeling for 8 years." Mr. Tian said that he would return to Dongguan after a rest, but there was no hope of returning to the original factory.

Failure of "vegetarian art"

The boss walks.

"Ding Jia" closes

Journalist survey

Two industries, senior business failures lead to pessimism

Su Yi: once survived the industry crisis in 2008

In July 13th, the Dongguan arts and Crafts Co., Ltd., located in the yoshan Sichuan Hongsheng Industrial Zone, Dongcheng, was affixed to a seal by the court. At this point, thousands of employees waiting to return to work and pay are completely desperate. The news of "failure of vegetarian art" and "we lost our job" quickly passed among workers. As the world's second largest toy brand foundry, "Su Yi" officially terminated its mission.

The reporter understands that "Su Yi" is a plush toy manufacturing enterprise run by a Korean boss. At its peak, there are nearly 2000 workers, whose products are sold to Europe and the United States. The history of running a factory is about the same as that of a handsome toy that went bankrupt in 2008. But what people did not expect was that "Jun Jun" survived when "Jun Jun" went bankrupt, but it did not survive in this crisis. "The factory has been doing well in the past, and the workers are paying too well. The boss also wanted to open factories elsewhere. " The middle management of the factory told reporters.

Workers said that on the day the factory collapsed, the Chinese executives would not want to go to work, and the South Korean boss ran away. Everyone was ignorant for a while and didn't know what to do. Later, a lot of suppliers came to discuss the payment. The fact that the factory is closed has no doubt. For a time, the workers left home with their belongings, while more people waited at the door to wait for the labor department to solve the wage problem.

A supplier said he supplied fabric and the two sides worked together for nearly 10 years. Since the beginning of this year, factories have no longer been faithful to their commitments. The settlement accounts are not so punctual. Until April, they did not receive a single cent of the about one hundred thousand yuan they owed. "Nothing like this has happened before." The supplier said he had guessed whether the company would go bankrupt, but finally preferred to believe in the strength of the medium-sized enterprise.

Ding Jia: famous textile enterprises have flourished for a while.

In recent years, the failure of medium-sized enterprises is not the only one.

In mid June, the Liaobu based textile company, Ding Hao, also shut down. The textile enterprise, with more than two thousand workers, suddenly closed the door on the day, startled by the same industry boss. Mr. Shaw, the head of the toy of the first generation, seems to be a very familiar textile industry, which has always been normal, but the prosperity of the surface eventually exposes its fragile side. Suddenly, the capital chain broke down and went bankrupt.

"I have already left" Ding Jia "and worked in a garment factory in Humen. I am sorry to say that "Ding Jia" went bankrupt. I have worked there for eight years. Mr. Zhang, a Sichuan resident who was in the warehouse custody of "Ding Jia", told reporters on the phone that he felt that the collapse of the textile industry such as "Ding Jia" has shown that many enterprises in the same industry are having a hard time.

"Because of the tight banking market, coupled with frequent changes in the market environment, many small and medium enterprises have been unhappy recently." A textile business owner, who did not want to be named, told reporters that many small business owners were hard to support and simply shut down to avoid the limelight.

Industry: in this cold spell, the toy industry is the first to bear the brunt of the textile industry.

Speaking of the cold spell of the company, Mr. LAN, senior manager of [0.49 1.03%], Dongguan's famous toy enterprise, said that compared with 2008, the pressure of this time's business is somewhat similar. Xiao Lin, the toy boss of the Hon generation, thinks that the pressure is worse than 2008. "There are still three problems: RMB appreciation, wage rise and raw materials rising." He said that these three factors will not disappear for a short time.

In the current cold wave of manufacturing industry, the toy industry and the textile industry bear the brunt. In this regard, Chen Yaohua, President of the Dongguan textile and garment industry association, said that the total failure or closure would not exceed 10%. But this is already a great pressure. The reason is that since May, demand for the European Union and North American market has begun to decrease significantly, while domestic financing ring has increased difficulty, wage increase has increased, raw material cost has increased, RMB appreciation has increased, and the profits of small and medium-sized enterprises have been largely suppressed.

Chen Yaohua said, there are two things that may happen next, and the good thing is that the market will get better in the second half of the year, and there will be a good market before Christmas in the West. However, there is another possibility that domestic financing environment, wage level increase and price control can not be controlled, resulting in a single failure. Then the days of SMEs will be worse and worse, and the way to repeat the 2008 financial tsunami is not impossible. {page_break}

Chen Yaohua believes that Dongguan enterprises, like the Yangtze River Delta enterprises, are indeed the most dangerous period since 2008. If the situation is worse, any pressure will become the last straw, and many enterprises will collapse at once.

A sound of crisis

Shoe companies are in good condition.

In the face of many companies' panic, only Dongguan's shoe manufacturers are under a bit of pressure. Zhang Hong, Secretary General of Dongguan Leather Footwear Association, said in an interview that compared with the toy industry and textile industry, the leather shoes industry in Dongguan is not that heavy. The main reason is that in April this year, the EU lifted the punitive tariffs on Chinese leather shoes. The tariff has returned to normal level, which has greatly reduced the tariff burden on leather shoes manufacturing and reduced the operating cost. "However, the difficulties of financing and RMB appreciation and lack of employment remain a sharp edge."