The New Labor Law Implements The Cost Pfer Chain.

The new labor contract law, which was implemented in January 1st, broke the traditional labor employment relationship and broke the balance of the market.

Some enterprises say that "the new labor contract law brings the cost increase, the product raises the price", also has the enterprise to shift the staff to the labor dispatch company -- as more and more people and the enterprise are involved, a cost pfer chain is forming.

The new law carries out the powerful shock waves brought by the new law of labor contract, which is brought into effect by the new law of labor contract, which has touched the nerves of business owners in the fields of medicine, retail, oil and construction.

A person in charge of a large state-owned enterprise in Sichuan said that the original company asked a labor worker to pay only 20 yuan and one hour's salary. If it was formally compiled, it would pay at least fifty or sixty yuan an hour, which would greatly increase the cost of employment for the enterprise.

In January 10th, Miss Li, director of human resources at a trading company in Chengdu, told reporters that her company had just "solved" a group of people.

"Just recruited before the end of the year, taking into account the cost control, all dismissal."

This trade company's approach is not "maverick". "You have to understand that since it's business, making money is the end."

In fact, for the enterprises with irregular employment system, the labor cost will be greatly increased after the implementation of the labor contract law.

For example, if an enterprise breaks the law or terminates the labor contract, it will pay two times to the worker according to the standard of the economic compensation.

In addition, the labor contract law takes the social insurance clause as the essential clause of the labor contract, which is undoubtedly a huge expenditure for the enterprises who did not pay social insurance premiums for their employees before.

Public information shows that 40% of our private enterprises have not signed labor contracts with enterprises, and their employees are in a state of insecurity.

Miss Li believes that even a very standardized enterprise will consider "risk shifting and profit maximization".

Wang Yiming, director of the personnel management research center of the China Talent Research Association, believes that for many domestic enterprises, low cost has always been the only competitive advantage.

According to the survey of the footwear association of Asia, about 500 shoe making enterprises in Guangdong have been closed down in the past 3 months, and some weaker shoe companies have chosen to go out of business before the end of December.

It is reported that the average net profit of footwear industry is 5% to 8%, and the implementation of the labor contract law and other factors bring more than 20% of the cost to enterprises.

In addition, for many industries including the textile and garment industry with an average profit margin of not more than 5%, will the implementation of the labor contract law become the last straw to crush them?

The cost of product upgrading has shifted to the consumer market. Some enterprises have considered and acted on the cost pfer.

A simple proof: at the beginning of this month, some SIEMENS refrigerators and washing machines in Chengdu market have begun to raise their prices quietly.

An original price of 13 thousand and 900 yuan SIEMENS refrigerator price rose to 14 thousand and 900 yuan, the other SIEMENS washing machine from 1800 yuan to 1990 yuan.

Liu Ke, general manager of SIEMENS Sichuan branch, said that because of the increase in electrical manufacturing costs and the increase in labor costs brought about by the implementation of the new labor contract law, the increase in fuel costs and the increase in pportation costs, prices had to be raised.

The turnover of salesmen is frequent. Before signing the formal labor contract with the promoters, the appliance companies usually sign temporary employment agreements. The company will need to sign formal labor contracts with the promoters, which will increase the risk reserve and other costs. The cost pressure of the enterprises will increase, but the pressure can be pferred to the consumer market through the way of raising prices.

In the home decoration industry, some people have shouted, "the implementation of the new labor contract law will make the home decoration industry bid farewell to the era of cheap labor."

Enterprises control costs, on the one hand, through pfer, and on the other hand, internal control.

The new labor contract law adds some provisions that are more conducive to protecting the interests of fresh graduates. In the future, employers can no longer abuse the "probationary period", but the news from enterprises shows that they are more cautious in recruiting fresh graduates.

In January 3rd, the Chinese Academy of Social Sciences released the blue book on social situation analysis and prediction in 2008, pointing out that nearly 5 million of the university students graduated in 2007, but up to now 1 million have not found jobs.

At the end of 2007, at the "2007 China enterprise leaders annual meeting", Liu Chuanzhi, President of Legend Holdings Limited, pointed out that the new labor contract law made enterprises nervous and paid too much attention to the interests of employees in the existing enterprises. In fact, it was not conducive to the development of enterprises.

For example, the signing of a permanent contract agreement, or the expiration of the contract agreement to compensate for this problem, will make the enterprise too heavy in human resources.

The new labor contract law was "the first snow in 2008" for some enterprises. However, some people found business opportunities, and the dispatch companies suddenly sprung up like mushrooms because there was a large number of enterprises' attitude of "not asking for everything but using it".

In January 8th, Sun Yuan received a similar fax. A food company in Sichuan hopes to pfer more than 500 employees to her labor dispatch company.

Hu Lanping, general manager of Sichuan Zhongsheng Talent Service Co., Ltd.

Recently, he received frequent phone calls from enterprise consulting services.

"I felt that this industry had to run out of business, but now it's too busy to do business."

On the eve of the implementation of the new labor contract law, labor dispatching companies suddenly received unprecedented attention, and even a large number of labor dispatch companies suddenly emerged.

Labor dispatch is the dispatch of labor dispatch companies according to the short-term needs of the employing units, dispatching personnel to employment enterprises.

The employing unit "uses only people, but does not hire people". The sending organization "employs only people, not people".

This method has been widely used internationally and has become an important way to reduce labor costs.

It is reported that the sending agencies charge certain management fees to the enterprises. At present, the management fees paid by the Chengdu market enterprises to the sending companies are charged by dozens of yuan per month according to the personnel size.

For example, the number of workers dispatched to enterprises is between 200 and 300, and enterprises generally pay a management fee of about 80 yuan per person per month.

It is reported that since last October, some companies in Chengdu began to consult and understand the rules of labor dispatching.

At present, the demand for labor dispatch in the Chengdu market is mainly concentrated in service industries, Property Management Company and other industries.

Recently, a company responsible for the pfer of 12 new employees to labor dispatch companies told reporters: "we can reasonably reduce some costs, avoid possible risks, and how much costs can be directly reduced, but the risks are controlled."

Reporters in the subsequent investigation found that construction site workers, sales promotion personnel, logistics distribution system workers have become the target of labor dispatch companies.

An average migrant worker with a monthly salary of only about 700 yuan can increase his monthly income to 1100 yuan after the pre job training of labor dispatching companies, plus social security, and so on.

In addition to the monthly management fee for labor dispatch companies who pay 80~100 yuan for labor dispatching companies, other additional costs are not much.

The related link labor dispatch needs to be standardized. Since last October, the number of labor dispatching companies all over the country showed an upward trend.

The introduction of the new labor contract law has intensified the development of the labor dispatch market, and driven by interests to set up smaller companies with a smaller risk tolerance.

However, the operation of these small dispatching companies is not standardized, resulting in a disorderly competition in the market. "These companies are reluctant to take orders in pursuit of profits, which is not conducive to the development of the industry itself, nor is it conducive to establishing good relations between workers, enterprises and sending companies, and easily producing unnecessary labor disputes."

The industry suggested that "relevant departments can introduce a series of industry norms, such as the size of labor dispatching companies, the qualification requirements of employees, self-discipline awareness, professional experience and so on, so as to standardize the labor dispatch market fundamentally."

The interests of enterprises and employees are not winners. "Rising prices due to rising labor costs is just an excuse for enterprises.

The fluctuation of the price chain is not decided by a single link. The increase of raw material price and pportation cost is the most real reason for the price increase of enterprises.

Since the beginning of last year, a wave of price surges has started in various product fields, which is not very relevant to the formal entry into force of the new labor contract law in January.

Liu Chang, a human resource expert at the Sichuan Academy of Social Sciences, said.

Liu Chang believes that the original intention of the state to introduce the new labor contract law is to protect more workers' legitimate rights and interests. The relationship between workers and enterprises is fixed in the form of contracts. It is a humane initiative. However, in practice, some enterprises' interests have been lost.

For example, an enterprise is faced with the pformation from traditional industry to modern high technology, and it needs to eliminate some skilled workers, but this violates the provisions of the new labor contract law, and the cost and burden of pformation will increase.

For example, the new labor contract law stipulates that ten years' continuous work will become a life-long employee of the unit, which will make the interests of some employees unable to protect, and the contract of employees will be more short-term.

After all, in the eyes of enterprises, the choice of the contract binding system will be some high tech and backbone talents, and some of them are unwilling to sign long-term contract relationship with the units. Another part of the employees with relatively low technical content and simple operation can not satisfy their demands for long-term work in the enterprise.

Liu Chang explained that many enterprises will take various measures to circumvent some of the provisions of the new labor contract law.

For example, in accordance with the new standard, employees' salaries can be improved, so enterprises will increase the intensity and workload of employees and abolish the salary which originally belonged to the employees' welfare and then be put into the wages in batches.

In addition, some enterprises evade the system of permanent staff after ten years, and sign short term contracts with employees or avoid contracts after a certain period of time.

Therefore, in this game, enterprises and employees are not the ultimate winners, and the interests of both sides will be more or less damaged.

With regard to some deficiencies in the implementation of the new labor contract law, Liu Chang said: "we can take several measures to solve this problem.

First, enterprises can link part of the profits with the wages of employees, which will increase the enthusiasm of employees while promoting the healthy development of enterprises.

Two, strengthen professional social organizations to regulate the employment behavior of some enterprises.

In Canada, whether blue collar or white collar, the first thing to find a job is to find a lawyer who is suitable for him, and then to talk about the related rights and interests with the enterprise by lawyers. Once employees and enterprises have disputes, they will be resolved by lawyers, so that the benefits and benefits of enterprises and employees can be guaranteed.

In China, the labor department is only an arbitral body. It is very difficult for many employees to safeguard their rights when problems arise.

Three, strengthen the awareness of employees' rights protection and enterprise's conscious maintenance of employees' interests, but this is really difficult to implement.