The New Labor Law Will Be Implemented And The World Shoe Market Is Going On Thin Ice?

One of the ten pairs of new shoes produced in the world is produced in Dongguan.

Recently, Guangdong media reported that there are hundreds of shoe factories in Dongguan this year because of the increased operating costs in the Pearl River Delta region, plus the appreciation of the renminbi and the continuous tightening of processing trade policies by the government, and the choice of closures or relocation, more than 1000 shoe manufacturers in Guangdong province have gone bankrupt.

Some analysts point out that the Guangdong provincial government wants to speed up the adjustment of industrial structure and hope that the labor-intensive manufacturing industry will be pferred from the Pearl River Delta.

It is also pointed out in the industry that the labor contract law, which is about to begin on New Year's day next year, is the last straw to crush the camel (shoe factory).

Guangdong shoe manufacturers are mainly concentrated in cities such as Dongguan, Huizhou, Guangzhou, Heshan and Zhongshan, with a total of 5000 to 6000.

In the first three quarters of this year, 1000 shoe factories and supporting enterprises in Guangdong have been shut down by various factors or actively closed down, or have been sealed up by the courts or moved to other areas, Yangcheng Evening News reported.

The minimum monthly salary for shoemaker workers in Dongguan in 2002 was 450 yuan (RMB, the same time, about 90 new yuan), and now it is 690 yuan, an increase of more than 50% in five years.

In fact, the average salary in the Pearl River Delta is between 1000 yuan and 1500 yuan, but it is still difficult for enterprises to hire people.

The "cheap labor force" in the Pearl River Delta is past tense.

Zhu Weiping, Executive Deputy Secretary General of the footwear association of Asia, pointed out: "the average monthly wage cost in Jiangxi, Anhui and Hunan is about 200 yuan cheaper than that in Guangdong, so the factory of 1000 people in Guangdong only recruited 35 hundred people, limiting the production of shoemaking."

At the same time, Jiangxi, Sichuan, Hunan, Jiangsu and Zhejiang and other places, the rise of the footwear industry, shunting the skilled footwear workers and field workers, some of the factories that Guangdong can not support can only be closed down.

Zhang Huarong, chairman of the Asia Footwear Association and chairman of Dongguan Huajian International Group, revealed that the company had earned meager profits for foreign brand foundries, and a pair of shoes could only earn 1 or 2 dollars (1.44 to 2.88 new yuan), while the average export price was about 14 dollars.

Raw material prices, water and electricity charges and factory rents continue to rise, but the cost of processing and products has not risen, making many factories unsustainable.

Zhu Weiping said that the Chinese government announced that since August 1st this year, the catalogue of processing trade restricted commodities has been expanded. The processing trade enterprises in the eastern region must give the deposit to the bank management. The central and western regions are not subject to this restriction, so that the capital contribution of enterprises in the eastern region has increased by more than 10%.

In addition, last October, the European Union announced a 16.5% anti-dumping duty on Chinese leather shoes enterprises for a period of two years.

In June this year, Taiwan also imposed a 43.5% anti-dumping duty on 6 types of footwear products on the mainland.

Some people in the industry think: "if it weren't for the rapid appreciation of the euro this year, China's shoe enterprises could suffer from the disaster."

Guo Weiwen, managing director of Dongguan Melvin shoe industry Co., Ltd., and Qingyuan Wan Bang Shoe Association, told the newspaper that the RMB appreciation factor offset the impact of the price rise of raw materials to some extent, and shook the confidence of some enterprises to continue to operate.

The new law requires employers to pay workers two times a month's wages if they hire workers for more than a month without signing a labor contract with the employee.

The same employer can only try a worker for a maximum period of not more than six months, and sign a fixed term labor contract for more than three years.

If a worker is employed for ten years or has two consecutive term labor contracts, the employer must sign an unfixed term labor contract with the worker.

Chen Yongzhong, a lawyer in Guangdong, estimates that the new law will increase the cost of employee employment by more than 8%.

Bai Zaijun, chairman of Dongguan Houjie Songjiang shoe material factory, believes that the new law makes the labor-intensive small and medium-sized enterprises face enormous pressure to survive, and the shoe industry is the first to bear the brunt.

"In accordance with the regulations, at least 2000 yuan per worker per month."

"There is no way to go out of business, or to go bankrupt, and to make low-end products." I estimate that at least 40% of Houjie shoe factories can not adapt.

This is definitely a revolution. "

The labor law increased business costs and enterprise legal risks. In October 24th this year, the shoe industry (Taiwan capital), a representative enterprise in Dongguan footwear industry and 4000 workers, announced that it was closed down and paid more than about 40000000 yuan of economic compensation stipulated in the labor law.

Guo Weiwen believes that the labor contract law has increased the operating costs and legal risks of enterprises. Some enterprises feel that their business prospects are bleak. Like the frequent shoe industry, they choose to close their business when the cost of economic compensation is low.

Some people in the industry believe that the fundamental reason for the suspension of shoe making enterprises is the reduction of profits.

In general, the profit for international brand foundry is between 5% and 8%, and the new law is "adding insult to injury" for enterprises.

According to the statistics of the footwear association of Asia, about 25% of shoe manufacturers in Guangdong have set up factories in Vietnam, India and Burma, and 50% have set up factories in Hunan, Jiangxi, Guangxi, Henan and other provinces, and only 25% are still on the sidelines.

Although the cost of Guangdong has been rising and even higher than that of many other countries in Southeast Asia, the manufacturers who have moved abroad have to face the problem of inadequate matching of other industrial chains and increasing traffic costs.

Long Yongtu, the former Vice Minister of China's Ministry of Commerce and Secretary General of the Boao forum for Asia, said that Dongguan should develop high-end industries in the future and become a manufacturing base based on R & D and design to create a Chinese brand.

Gong Leun said, "how to make the brand into a famous brand is a question of how to get quality leap.

The development of high value-added products is the inevitable development direction for every enterprise, and now the enterprise is facing a painful process of reshuffling.