Rising Labor Cost Has Become The Last Straw To Crush Shoe Companies.

The rising cost of recruiting workers and accelerating the "death" of small and medium-sized shoe enterprises and "recruiting difficulties" become the buzzwords in the footwear industry in 2008, which has become an important factor restricting the development of shoe enterprises.

In some enterprises, advertisements for recruitment are fought every day, but still can not be found.

Due to the shortage of labor force, the delay in delivery of orders caused by the inability of enterprises to keep up, and the situation of customer claims, some enterprises have lost orders or even lost customers.

It is difficult to recruit enough workers to recruit enough workers.

It is difficult to recruit workers in quality, that is, they can not recruit skilled workers, professional technicians and so on.

As a result, many shoe companies, while enjoying their orders, are also suffering from the shortage of workers.

Some experts say that due to the shortage of labor in some areas, shoe companies compete with each other for skilled workers and technical workers, even at the expense of attracting high salaries.

However, because the enterprise is not dedicated to the development of people, it not only increases the burden on enterprises, but also fails to retain talents in the end.

What is particularly noteworthy is that at present, skilled shoemaking workers have become scarce resources in many areas. "Recruitment difficulty" has become an important factor restricting the development of export shoe enterprises.

Due to the shortage of labor force, the delay in delivery of orders caused by the inability of enterprises to keep up, and the situation of customer claims, some enterprises have lost orders or even lost customers.

"Recruitment difficulty" is becoming a bottleneck restricting the development of labor-intensive enterprises, and has aroused widespread concern in the whole society.

In the face of the "shortage of migrant workers", many shoe companies are trying to retain employees through ways such as raising wages and improving the employment environment.

However, due to many factors, such as the rising cost of raw materials and higher freight rates, the profits of shoe companies are sharply reduced.

This leads to the fact that even if some enterprises want to raise wages and benefits for their employees, but because of the limited funds, they are also unable to cope with them.

The introduction of the new labor law has further increased the labor cost of enterprises and reduced the profits of enterprises.

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.

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

Price increases have also contributed to the increase in the cost of labor in shoemaking enterprises.

Since last year, consumer prices rose by 6.6% over the same period last year, of which food prices rose by 13.5%.

As we all know, food expenses account for a large proportion in the living expenses of migrant workers.

In many places, the price of rice has almost doubled, and the cost of living for migrant workers is likely to rise by tens of dollars.

In some enterprises, the income of workers working in normal time can only maintain their living expenses, but to keep the money, they can only work overtime.

Moreover, some of the effects of price increases have been pferred to enterprises through wages and daily expenditures.

These reasons have prompted the rapid increase in the labor cost of small and medium-sized shoe enterprises, and the profit margins have been further compressed.

It caused some enterprises to manage difficulties and went bankrupt.