New Labor Law Implements Shoe Enterprises To Promote Superior And Inferior Products

In the last days of 2007, the topic aroused by the promulgation and implementation of the new labor law attracted wide attention from all walks of life.

In Dongguan, Guangdong, which is known as the "world shoe capital", with the successive closure of shoe factories at the end of the year, people naturally connect it with the promulgation and implementation of the new labor law.

There are even media reports that the new labor law is the last straw to crush camels, and the "world shoe capital" will also be erased from Dongguan's head.

Then, is the new labor law the straw that can crush camels?

The answer is specious.

According to some information published at present, at least thousands of shoe factories failed in the past year in Guangdong.

Especially in October 24th of last year, a well-known company in Dongguan suddenly announced the unilateral rescission of contracts with employees, and produced about 40000000 yuan to compensate nearly 4000 workers, and stopped the production of shoes.

The choice of these bankrupt enterprises is either to go out of business, to move out, or to pform.

The reporters saw that there were also owners in the shoe factories that had failed, or intentionally or unintentionally, the failure of the enterprises and the new labor law.

But they did not directly affirm that there is a causal relationship between the failure of enterprises and the new labor law.

In fact, the collapse of many shoe factories in Guangdong reflects the existence and development of labor-intensive, low tech foundry enterprises, and the inevitable rule of decline.

The fact is that the price of raw materials has gone up, and the EU's anti-dumping and meager foundry fees have already reduced them to no room for survival.

It is said that the enterprises that are preparing to move out are looking for new processing bases. Many enterprises are looking to Vietnam, Indonesia and other places, because their labor costs are lower than China's scores by more than 10 percentage points.

According to reports, UNIQLO, one of Japan's largest clothing retailers, announced that the ratio of products to be produced in China will be reduced from 90% to 60% by 2009, and that the proportion of production in Vietnam and Kampuchea will increase to more than 30%.

Various signs seem to point to the root of the problem in the promulgation and implementation of the new labor law.

But management is not wavering over these signs.

They are more willing to see enterprises upgrading and increasing the added value of products to make profits, rather than relying on selling cheap labor to get meager rewards.

The new labor law is not necessarily the straw that killed camels, but it is an ultimatum to urge enterprises to upgrade.

The promulgation and implementation of the new labor law seems to tell people that the progress of society is not always full of flowers, but has pains of growing up and pains of pformation.

In the new law, the general view is that, in the long run, only those low profit enterprises will be eliminated, the employment will be standardized, the workers' income will really increase and the labor relations can be truly harmonious. At the same time, the survival of the fittest will be accelerated and the industrial upgrading will be promoted faster.