New Labor Law Stirs Up Changes In Recruitment Of Private Shoe Companies

"Recently, many companies have asked me to talk about the legal issues of employment, and some employees have called for overtime wages.

This is not a phenomenon in the past.

Liu Zongwei, lawyer of Fujian Tianheng joint law firm, told reporters.

The People's Republic of China labor contract law, which has attracted much attention, has been implemented since January 1st this year. Recently, reporters in Quanzhou, Xiamen and other places in Fujian coastal private enterprises found that the impact of the new law on the traditional employment mechanism of private enterprises began to appear.

According to the insiders, the labor cost of the new law has been greatly improved, and the development mode of private enterprises relying too much on cheap labor has been difficult to sustain.

Quanzhou, where Liu Zongwei is located, is the most developed area of Fujian's private economy. The city has more than 130 thousand main market players, of which nearly 5000 are enterprises of above scale.

The prosperity of traditional industries such as textile shoes, clothing, building materials, food and beverages has absorbed nearly 3 million migrant workers in Quanzhou, and become the largest gathering place for migrant workers in Fujian province.

In February 22nd, the reporter came to the largest sports shoes production base in Jinjiang, Chen Dai Town, where advertising advertisements everywhere and roadside recruitment stalls showed that the situation of shortage of employment was still maintained.

In the newly completed labor force service center of the town, there are nearly 300 recruitment stalls on the two and third floors. Perhaps the peak period of migrant workers returning to the city is still coming, and there are not many migrant workers who come to find jobs.

Liu Jin, director of recruitment at a shoe factory, joking, "there are not many workers looking for jobs."

Long time overtime and no overtime pay, which is very common in private enterprises, but according to the provisions of the labor contract law on overtime, enterprises must pay overtime wages to workers.

The reporter interviewed found that the employment enterprises had come up with the countermeasures to increase the manpower cost and not to break the law.

"We lowered the unit price, and then paid the overtime fee according to the statutory amount of the state, but the total wages did not increase."

The head of the human resources department of an enterprise gave the reporter an account: in the past, an hour earned six yuan, and earned 10 yuan a day for 10 hours. Now we set the price for an hour of five yuan, five yuan in eight hours, an hour overtime, a double wage of 10 yuan, 10 hours a day or 60 yuan a day.

Since the minimum wage standards are far below the general wage level, there will be no conflict with the minimum wage.

Although the reporter found on the information release screen of Jinjiang labor force service center, the monthly wages of the recruitment companies were generally between 1000 and 2500 yuan, and the senior lathe workers even reached 3000 yuan, and the age was also relaxed to 20 to 45 years old.

But according to the latest statistics of Quanzhou, there are still 182 thousand workers in the city this year, and the competition among enterprises will be fierce.

"We went up in December last year to raise labour prices by more than 10%, in order to attract old workers to come back after the holidays," said Peng Jing, director of Human Resources Department of seasonally wind technology company in Tongan Industrial Park, Xiamen.

In addition to the rigid wage increase, the labor contract law also forces enterprises to bear more expenses for workers in terms of insurance and so on.

According to regulations, enterprises must employ five major insurers, such as work-related injuries, medical care, pension, unemployment and childbirth. In Fujian Province, the insurance premiums of these five insurers account for 39% of the total wages of workers, of which 29% are paid by employers.

That is to say, if a worker's monthly salary is 1000 yuan, the enterprise will have to pay nearly 300 yuan of insurance premiums.

But reporters learned that in addition to a relatively high proportion of management personnel, the proportion of various types of insurance for the first tier workers is very low.

"Although the new legal provisions can not be carried out strictly at once, the general trend is getting tighter and tighter. In the past year and a half, wages have not been paid now, and the enterprises with good conditions have invested heavily in improving the welfare of their employees and making insurance for their employees. The workers suddenly attracted the past, and the small competitive enterprises had to go out."

Lin Shunong, the boss of a business in Chen Dai Town, said.

Reporters learned that before the Spring Festival, many enterprises in Quanzhou had lost their wages due to financial difficulties, and ultimately, the local governments had not compensated for the bigger problems.

Some enterprises regard it as a turning point when there is a sharp rise in operating costs brought by the labor contract law as a crisis.

Xiao Qingjiang, the head of seasonally wind technology company, said that workers are the creators of corporate profits, and that through legal means to enhance the treatment of workers, it will bring impact to many enterprises in a short time, but it will be a good thing for a long time.

"If we do not adapt, we will get bigger opportunities for development, and the market will be more standardized."

As a new law to promote harmonious employment relations, the labor contract law brings benefits and constraints to workers.

Huang Zongbing, a migrant worker from Dazu County, Chongqing, said that many workers in private enterprises had a weak sense of contract and wanted to go, so they would have a headache.

"Enterprises should abide by the law, and workers should also abide by the law. Although they think it is difficult to carry out the work in an all-round way, this law is of great significance."