Dongguan Assists Smes In The Winter To Postpone The New Labour Law

In November 6th, Jiang Ling, vice mayor of Dongguan, said that in order to help SMEs get through the "cold winter", the Dongguan municipal government recommended to the central government and the Guangdong provincial government to slow down the implementation of the labor contract law and the minimum wage increase.

This newspaper also learned that, on the afternoon of 12 July, Donald Tsang, chief executive of Hongkong, held a meeting with representatives of Hong Kong funded enterprises in the Pearl River Delta, and said that the SAR government has made specific recommendations to the mainland authorities to help Dongguan businesses tide over difficulties, including the proposal to revise the labour contract law in the mainland to enhance the flexibility of human resources mobilization.

On the 17 day, the Ministry of human resources and social security further issued a notice that, according to the current economic situation and the actual situation of enterprises, the recent adjustment of the minimum wage standard for enterprises was postponed.

"It is a top priority to help enterprises through difficulties and stabilize the employment situation."

According to the notice of the Ministry of human resources, the Ministry of human resources and social security requires that a unified scale of urban employees' basic medical insurance and industrial injury insurance fund balances should be adopted, and a one-off measure can be adopted to reduce the rate of premium payment in a certain period.

Under the global financial crisis, how to implement the labor contract law has become the focus of controversy.

This is a blowout of labor disputes. A newspaper reporter from Guangdong Provincial High Court has suggested that the new labour dispute case this year has been "blowout".

The document shows that as of June 30th, 39767 new labour dispute cases in the first half of the Guangdong Provincial High Court increased by 24338 compared with the previous year, an increase of 157.7%. Among them, the Pearl River Delta region received 38381 new revenue in the first half of this year, an increase of 160.1% over the previous year, accounting for 96.5% of the total number of cases in the province.

Besides, this newspaper also learned that the first 5 months of this year, only one city in Shenzhen accepted 19784 cases of labor dispute arbitration, an increase of 250% over the same period last year, exceeding the total number of cases accepted in the whole province last year.

With the implementation of this year's labor contract law and labor dispute mediation and Arbitration Law in January and May, the litigation cases of labor disputes have also increased significantly.

The Guangdong Provincial High Court insider also told this newspaper that after the implementation of the new labor law, labor relations began to seek normal ways and pparent channels to coordinate, and the labor contract law has become a social stabilizer for the employment problem.

The Guangdong provincial high court official said that the information disclosed by the data was all the same.

The employment problem needs an automatic stabilizer.

At least before the new labor law, labor disputes have not been solved as a compulsory and pparent channel.

A new labor law of a textile enterprise has been called "MISSION IMPOSSIBLE (an impossible task") by Ma Junmiu, a general manager of Fu Yi Si textile (a pseudonym).

In November, the order of textile enterprises in Houjie Town, Dongguan, with a total import and export volume of 400 million yuan in 2007, was reduced to six months ago. The reduction of 80%. orders directly led to surplus labor force. Ma Jun made a decision to lay off 5%.

5% of the companies that employ more than 5000 workers are laid off to 300.

Ma Ma Miu introduced to this newspaper that the average worker of their company was about 1500 yuan per month.

In accordance with the provisions of the new labor law, enterprises should also provide each worker with a total social insurance of 300 yuan and three gold (i.e. endowment insurance, medical insurance, unemployment insurance), and maternity insurance and industrial injury insurance.

At the same time, there are still many subsidies to be paid, Ma Jun Mu said. Their business allowance increased from 39 yuan in 2007 to 100 yuan per person.

According to the provisions of the new labor law, Ma said that the average labor cost per worker was increased to 2000 yuan / month, and the cost of labor increased by 33%.

The other part of the job is social security linked to workers.

However, the current social security payment system is not satisfactory for enterprises and workers.

Ma Ma Miu explained to reporters that factories pay three gold for workers, but most of them are foreign and mobile.

When they leave the city, they can only take a very small portion of the money, and most of them can not take it away.

Ma told reporters that when the new labor law was being implemented, the actual situation was that the enterprises were tacitly allowed to use some "legal skills", while the relevant departments were relatively relaxed when they implemented them.

"Even in the Pearl River Delta region, the participation rate of social security can only be around 50%."

An official of the Guangdong Provincial Department of labor told our reporter that the labor department "basically acquiesced in the factory to pay only part of the staff three gold, and each region is different."

The rapid reduction of orders since September is the direct cause of Ma Jun's decision to lay off workers. However, Ma believes that the main reason for the large number of factories closing down and the large number of foreign enterprises being evacuated is the implementation of the new labor law.

"It is very simple that the cost of labor rises by more than 30%, and it is spread to clothing about 3%."

Ma Jun Mu said, "but this number of the vast majority of enterprises are simply unable to bear.

If it is to be implemented, there is no doubt that it will be closed. "

Ma Jun Miu told reporters that "if there is a corresponding profit to ensure that enterprises are willing to accept (New Labor Law), because in the long run, this is actually conducive to the development of enterprises.

But today, enterprises need to survive or develop. Do I want to survive first? "

Ma Junmiu told our reporter that after the Spring Festival, if the situation did not change, it would have to increase the number of layoffs.

The employment research in Zhujiang Delta is about to start. Our newspaper reporter was informed that the labor security system in Guangdong is about to launch a comprehensive survey of employment problems in the Pearl River Delta region.

In this survey, enterprises with difficulties in production and operation, arrears of wages for more than 1 months (including 1 months) or signs of failure will be monitored.

Among them, export-oriented manufacturing enterprises and labor-intensive enterprises were listed on the key list.

An official who participated in the survey told reporters that "the implementation of the new labor law is indeed a good thing for the state to take into account the interests of the workers. It is indeed necessary to protect workers. But under such a global financial crisis, enterprises are in a particularly difficult period. We should take into account the difficulties of enterprises."

"In the current situation, the general small businesses have been precarious. As long as there are workers in trouble, if they are strictly enforced according to the provisions of the new labor law, they will basically be closed."

The officials involved in the survey said, "now that the economy is experiencing problems, enterprises can only cut costs through layoffs.

Instead of pushing workers into the community to get unemployment benefits, or more appropriate, they can be put in the enterprise first, so that enterprises can share this part of the surplus labor force.

In view of this view, there are different opinions among enterprises.

Chen Jiawen, the head of a large footwear company who is the five largest sneakers in the world, and a toy foundry company from the South China Sea official kiln, told reporters that even if the state relaxes the enforcement of the new labor law, they will not reduce the layoff plan. "Instead, they will take the opportunity to pform and increase the profit share of the domestic market in order to cope with the long-term cost increase problem." Chen Jiawen, a leading shoe manufacturer in the South China Sea.

Their reason is that in the toy industry as an example, the average profit of the OEM in the industry is only 3%-5%, while the domestic profit is 7%-10%, and the profit of the self owned brand enterprises is more than 20%.

In the view of the survival of enterprises and the rights of laborers, it is argued that the implementation of the "labor contract law" triggered the collapse of enterprises. Zhang Qijun, a lawyer from Guangdong Jin Yue law firm, expressed different views to reporters. "To be precise, most of the labor-intensive enterprises have not standardized to a large span of norms, causing enterprises' discomfort."

Zhang stressed that "the significant increase in the so-called labor cost caused by the new labor law is only an excuse for the poor operation of the enterprise."

Huang Qiaoyan, a senior lecturer at Zhongshan University law school and a lawyer from Guangdong Minnan office, hold the same view. She stressed that "from the legal terms, the new labor law has very little impact on enterprises. If the labor law brings great cost impact to the enterprise, it can only be said that the enterprise had violating too many rules, and now it needs to be filled."

For example, she did not buy the social security before January 1, 2008, and the law could not manage it. After that date, it must be completely bought.

But in fact, the general situation is that enterprises will buy part of the social security.

In view of this, Liu Kai Ming, director of the Shenzhen contemporary social observation Institute, who has done a lot of labor research in the Yangtze River Delta and the Pearl River Delta, also told this newspaper that "I hope that the government should understand the actual situation of the front-line staff when doing business research. In terms of labor and capital, the increase in enterprise costs is not mainly due to the implementation of the labor contract law, but on the one hand, the labor dispute mediation and arbitration law reduces the cost of labor rights protection. In addition, the labor contract law has detailed punishment measures, which makes the implementation of the labor law has practical significance.

Liu Kaiming objected to postpone the adjustment of the minimum wage standard for enterprises. "This standard is used by enterprises to pay social security standards. The income of migrant workers is much higher than that of the Yangtze River Delta and the Pearl River Delta.

Based on this, enterprises should not blame the labor contract law. Since the law has been promulgated, why not enforce it strictly? Even if the labor contract law has something that can not be practically operated, such as social security can not be pferred to the domestic authorities as a whole, we can amend the law instead of enacting the law instead of implementing it.

Yan Zhiqiang, a sociology professor at Zhongshan University, who has long been concerned about labor relations and labor social security, said: "in fact, in the long term social security and short-term business survival problems, the government is more inclined to short-term business survival."

Hu Xiaoyi, deputy director of the Ministry of human resources and social security, said shortly before the social security forum, "the labor contract law is a law passed by the NPC, and must be resolutely implemented throughout the country."