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    Analysis Of Disputes In Yucheng Shoe Factory Of Huang Jiang Town, Dongguan

    2011/11/23 10:46:00 45

    Dongguan Shoe Industry Layoffs Lining Nike

    Possession of "system"

    footwear industry

    Foxconn, known as Taiwan Baocheng group, has experienced a storm recently.

    On the morning of November 17, 2011, nearly 2000 workers of Yucheng shoe factory in Dongguan City, Baocheng group, refused to go to work because they were not satisfied with the new factory rules of the factory.

    The local government dispatched personnel to mediate quickly. At 10 o'clock that day, all the workers in the factory returned to the factory, and the once closed Lane resumed traffic.


    It is understood that the Yucheng shoe factory is a new foundry factory which belongs to Yuyuan Industrial (Group) Co., Ltd., which is called Baocheng group in Taiwan.

    Baocheng group acts as agent Nike.


    Adidas, TIMBERLAND, CONVERSE and Lining.

    Anta

    More than 60 famous domestic and overseas

    brand

    It is the largest manufacturer of shoes and casual shoes in the world.


    New factory regulations lead employee dissatisfaction


    At 8 o'clock in November 17, 2011, it was originally a normal time to go to work, but nearly 2000 workers in Yucheng shoemaking factory did not enter the workshop, but gathered at the gate of the factory.


    According to witnesses at the scene, thousands of workers were pferred from Yuyuan Industrial Zone and moved along the direction of Chang Mei Road to the town government to express their feelings.

    Yucheng plant sent representatives of staff to negotiate and negotiate, and the government departments dispatched personnel to mediate quickly. The employees did not return to the factory until 10, and the temporarily closed Lane also resumed traffic.


    After the incident, an official publication said: "after receiving the report, Huang Jiang attaches great importance to the rapid appeal to the staff.

    Dongguan City Human Resources Bureau responsible person, Huang Jiang Town Human Resources Bureau, judicial branch, letters and visits office, public security sub Bureau and other departments, the first time to go to the scene to guide the disposal work.

    In response to the situation of the petitioners moving along the direction of the government in the direction of Chang Mei Road, the public security departments ordered the exhortation in order to avoid any chaotic incidents and maintain order along the route, and successfully discouraged all the staff on the road at about 10 o'clock that day.

    The government of Huang Jiang Street contacted the high level of the factory and asked for personal handling of petitions. At present, the old system has been restored and the mood of workers has been stabilized.


    "The fire line is the new rule in the factory", said Li Fang, representing the Baocheng group of Taiwan.


    According to Li Xieli, in the economic downturn, in order to improve the management efficiency of the factory, the management requirements are indeed stricter, such as wearing factory cards, responsible for throwing shoes and so on. In addition, the workers are very interested in the performance bonus and the profits and losses in the factory. "We also want employees to share the responsibilities of the factory, and this provision is only in the discussion, not really implemented."


    Our reporter has learned that the new rules of workers' dissatisfaction include: each employee works 5 days a week and works 8 hours a day.

    No more overtime, and only this one, the average monthly salary of employees will be reduced by more than 1000-2000 yuan.


    A surnamed female worker told reporters that she and her husband both worked in the factory. They used to work 11 hours a day, and they would work overtime on weekends. They could get 1800 yuan to 1900 yuan a month, and now they worked 8 hours a day, without performance bonus, leaving only 1100 yuan a month. The cost of living expenses, social security and renting is only a few hundred yuan, and children are still living.


    According to the new factory regulation, as long as the profit and loss account is lost, even if the employee's performance reaches 1.5 or even 1.8 times, the performance bonus is all zero, so that the original 2000 yuan income minus the performance award will be left behind.


    After the incident, Yucheng shoe factory issued a circular: the revision and complements of the new system such as factory card control in the previous factory began to stop in November 17th.


    Since November 18th, the factory resumed the old system, and said that the follow-up, if there was a new system, will be stipulated in the labor laws and regulations to ensure the contents and procedures of the new system, which are in accordance with the law.


    18, the manager was fired.


    Before the gathering of "petitioning" incident, on October 27th, at 4 p.m., Yucheng shoe factory of Yuyuan Industrial Zone, Huang Jiang Town, suddenly informed 18 heads of staff to attend a meeting at the education center of the factory district. At the meeting, they announced the termination of the 18 chief labor contract and the next day's departure procedures.


    The 18 heads of staff did not know that they were dismissed until they entered the conference room.

    There are more than 50 chief executives in the Yucheng shoemaking factory, and 18 of them have been raised for more than 10 years, and each person manages 200 or so on-site production teams, which are the core components of Yucheng shoe factory production line.


    On the same day, a notice of rescission of the labor contract was posted at the entrance of Yucheng shoe factory. The announcement said: "because of the sharp reduction in factory orders, the business has been severely shrunk, and there has been serious difficulties in production and operation. In this sense, the factory decided to lay off workers. Since October 28, 2011, the factory has terminated the 18 Party's labor contract."

    He was also asked to leave the factory before noon on October 30th at 12.


    The request to stay at work was rejected, the factory unilaterally terminated the labor contract, and 18 heads were restricted to the factory by the manufacturer.


    Ceng Jinchang, director of Yucheng shoe factory, confirmed the news of layoffs. The reason for the layoffs was "shrinking orders and serious difficulties in production and operation".


    Dongguan City Human Resources Bureau Huang Jiang sub Bureau involved in the investigation of the field staff said, Yu Cheng shoe factory did indeed appear the business atrophy, only the monthly salary of the staff, on the order amount of about 1 million yuan.


    However, the 18 heads of the Department did not agree with the reason for the "reduction in orders, business shrinkage and operational difficulties".


    Song Wenya, who was dismissed, told Ben net reporter that he had been in the factory for 18 years. Although the factory called "order reduction", advertisements around Yuyuan Industrial Park were everywhere.

    Another Li Hua, the resigned director, said there were more than 8000 workers in the factory, and there was not much layoffs.

    {page_break}


    The focus of the dispute between the factory and the resignation chief is the ex post economic compensation. The talks between the two sides broke down in November 2nd.


    On the afternoon of November 3rd, the factory gave a reply that if the negotiations failed within three days, the 18 employees would be forced to move out of the dormitory and the corresponding compensation should be given according to the conversion method of the factory.


    Another Mr. Liao, who was dismissed by the resignation officer, held a hospital identification notice. The hospital identified Liao as a nine grade disability. Liao worked in a shoe factory for 11 years, and the total amount of compensation awarded to him by the factory was 43000 yuan.


    Song Wenya, the dismissal director, said that employees were too abrupt to be fired, and that they were all old employees. Some people were working on the day when the factory was founded. Now many people are here to have children.


    Preparing for moving to Jiangxi


    It is understood that the Baocheng group of Taiwan Yucheng shoe factory, Dongguan, began to pursue cheap production environment in the late 80s of last century, and opened the factory to the mainland.

    Baocheng group currently has factories in Zhuhai, Dongguan, Zhongshan and Heyuan in the Pearl River Delta.


    In the 20 years that entered the Pearl River Delta, Dongguan's "world factory" was established rapidly, and Yucheng shoes factory became a gateway to Dongguan's manufacturing industry.


    In recent years, with the collapse of manufacturing crisis in the Pearl River Delta, the continued downturn in the European and American markets and the rapid rise in costs, the Dongguan footwear industry, which is typically characterized by OEM, has increased the pressure of survival.


    According to the results of the first three quarters of this year, the combined operating margin and net operating profit decreased by 7.7% and 14.6% respectively, compared with the same period last year, due to unfavorable factors such as exchange rate fluctuations, labor costs and rising raw material costs. They reached NT $35 billion 803 million and $9 billion 497 million respectively.


    More of the leaders were blamed for this year's clamour of "moving inland".

    Yu Cheng's internal migration plan has been under external speculation.


    In November 2, 2011, Baocheng group's Yucheng shoe factory announced that Yucheng will actively organize the training core team to join the Yutai shoe factory in Jiangxi.

    Earlier, Yucheng shoe factory official Ceng Jinchang said that Yucheng shoemaking plant had no plans to move inland.


    In November 3rd, the Yucheng shoe factory of Baocheng group issued a notice, pointing out that Yucheng will actively organize the training core team to join the Yutai shoe factory in Jiangxi.


    It was speculated that Yucheng was motivated by internal difficulties in survival, but Yu Cheng did not respond positively.


    Yucheng shoe factory's original purchasing department, Mr. Liao said that Yucheng shoes factory dozens of orders and production lines have begun to pfer to Jiangxi.

    4 months ago, Yucheng shoe factory also had more than 13000 employees, and now less than 9000 people. It is understood that this season is the peak season for shoe production.


    However, Baocheng group said that the construction of a new plant in the mainland is "extension" and will not "move inland" in Dongguan and even the PRD region.

    A person in charge of Li Yuan, who works in the area of Yuyuan Industrial Zone, also confirmed that he had never heard of Yujiang shoe factory.


    Many owners of small and medium-sized enterprises in Huang Jiang told Ben net that the current subcontracting enterprises, which rely on orders, are facing serious pressure to survive because of the economic depression in Europe and America. The more serious consequences may not be fully apparent until the first half of next year.


    While adjusting the management level, Yucheng shoe factory also strengthened its management.

    For example, increase productivity per month, set a monthly goal and try to get rid of the loss situation through internal efforts.


    However, a "strange" situation has emerged.

    The middle managers of Yucheng shoe factory, who had been dismissed, said that although the monthly production efficiency of the factory in the first 10 months of this year is improving, the production target set at the beginning of the month has reached the end of the month, but the result of monthly statistics is still a loss, which is really hard to understand.

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