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    The High Cost Payment Of Shoes And Clothing Industry Has Become An Established Fact.

    2011/11/16 14:30:00 17

    Shoes And Clothing Extra High Cost

    A few days ago, the Ministry of human resources and Social Security announced that as of early November, 21 provinces, including Beijing, Tianjin and Shanxi, had raised the minimum wage standard, with an average increase of 21.7%.

    Up to now, 25 provinces have issued the 2011 annual salary guidance line, with a baseline of more than 14%.


    For ordinary people,

    Salary increase

    The news is no doubt a good news, but for enterprises, raising the minimum wage standard is undoubtedly a big challenge.

    This is particularly evident in small and medium-sized enterprises and some low income industries. They have been greatly affected by the rising wage trend.


    In recent years, OEM enterprises in coastal areas have managed to survive the financial crisis.

    Labor shortage

    And the continued fluctuation of exchange rate.

    The business life is really bad.

    The news released by the Ministry of human resources reflects the survival situation of a number of enterprises from the side. For those enterprises that make foreign trade export orders, it is difficult for them to cope with the weak global market demand.


    This situation is particularly prominent in the footwear industry.

    Faced with a series of pressure, the owners are afraid to take care of others. They are thinking about how to keep their profits. Even if they do their best, they should use various ways to digest the cost.


    According to the common sense of economics, the appropriate salary increase in the processing and manufacturing industries such as shoes and clothing can stabilize a group of skilled skilled workers, and the orders taken by enterprises can also be pferred from the middle to low grade in the past.

    medium and high grades

    Products, so that the profits of enterprises can grow synchronously.

    In the long run, the biggest advantage of rising labor prices is to promote enterprises to move towards a higher level of pformation, or to raise production levels, or to integrate and extend existing industrial chains. In any case, the purpose is to urge enterprises to rely more on technological progress and technological innovation to enhance their competitiveness, so as to realize the upgrading of the whole industry and eventually pform China's existing economic growth mode.


    This is probably true in the fact that the footwear industry in China is at a relatively low level.

    Decision maker

    A major factor in the affirmative attitude towards rising salaries.

    But raising the minimum wage also has another effect.

    At present, when the supply of domestic labor exceeds demand, wage increases will probably result in the fact that a part of the labour force can not get employment, thus causing the actual unemployment rate to rise.

    Therefore, it is also different from the perspective of salary increase.


    As far as the current situation is concerned, it is a fact that enterprises pay higher cost for labor force.

    We can only appeal again: after the minimum wage adjustment, we hope that the government can appropriately reduce some of the tax burden on those small and medium-sized manufacturing enterprises in distress, at least should enable them to operate normally and not bankrupt.


     
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