Samsung's Factory Raises New Salary, New And Old New Employees Protest

According to reports, more than 2000 workers' stoppage in Dongguan, Guangdong, is still continuing. The main demands of employees include raising wages and reducing the amount of social security deducted.

Shin Kang is a subsidiary company of SamSung group in China. It is one of Samsung electronics suppliers. That is to say, Shing Kang is Samsung's foundry in China, which has more than 5 thousand employees.

The reporter interviewed an old employee of Shan Kang, he said, in fact, the company has already increased wages, but the old employees have gone up quite a lot, so the new employees are dissatisfied.

Old staff: This is just an increase in the number of old employees. The new employees have gone up a little. The main increase is overtime pay, but the bottom salary is regarded as the overtime pay. Now it is the base salary and benefits plus, overtime pay. The old employees have higher welfare, so overtime pay is much higher. The new employees have indeed gone up. They just feel a little unfair. They do the same thing. The wages of the old workers are very high and the wages of new employees are low.

He told us that only more than 2 thousand new employees were involved in the stoppage, and the old employees had no complaints.

Old employees: new employees also have misunderstandings about social security. New employees just need to deduct 8% of their social security tax a year after entering a year. After entering the market a year later, they need to deduct 8%. For the new employees, there is not much change. For the old employees, because he has already raised their wages a year later, his social security has not been able to pay 8%. Because I have been here for two years, so the old employees' salary increase should be happy for us.

So far, the shutdown has lasted for two days, and the general situation is relatively calm. According to the former employee, the factory has had several stoppages every year. Although almost every worker's demands are related to the wage increase, there are still some more complicated reasons behind it.

Old staff: their department is basically labor dispatching, especially in a place where hundreds of people come. In addition, our factory environment is not good, the sewage discharged directly every night, everyone's mood is different, easy to produce irritable, South Koreans in the field, they manage the people on our side in the way South Korea, Korean people like larynx, like shouting, shouting, shouting and scolding, many do not like, and even hit people.

There are as many as more than 200 Samsung foundries in China. In recent years, the problem of Samsung foundries is endless. In 2012, the Samsung factory broke out a scandal of employing child labor. According to the China Labor Watch report, many factories that produce mobile phones and DVD players for Samsung employ children who are under 16 years old, including Shan Kang.

Although the rise in wages has led to large-scale downtime, it is a reflection of the rising cost of labor in China. This is an important reason why many multinational companies have moved out of China in recent years, moving back to their country or moving to Southeast Asia and Africa.

In recent years, the news of famous foreign enterprises withdrawing part or all of their business in China has been reported repeatedly. Since 2004, lion king group, the second largest brewer in Australia, has made a price of $154 million, which has been packaged and sold to Huarun beer in China. Since then, Holland's Filipino group has announced the end of its dairy production and operation in China, and Nike and Adidas have closed down Chinese factories.

PepsiCo sold its bottled business in China in 2011. Beginning in March 2012, the American consumer giant Gardner withdrew parts of its production line to the United States. In addition, Ford motor has moved 12 thousand jobs from Mexico and China to the United States. Starbucks has also made its ceramic cup from China to the Midwest of the United States.

Capital is always chasing profits. The transfer of international capital shows that the comparative advantage of China's manufacturing industry is fading away. Among them, the sharp rise in human cost is most obvious. It is understood that adidda closed its Suzhou factory, the most direct reason is that human costs rise too fast.

In 2012, the average per capita wage of Suzhou's workers was close to 3000 yuan per month, while the average monthly wage of Adidas's garment factories in Kampuchea was 130 dollars, which was only 828 yuan. Compared with Suzhou, the cost advantage is obvious.

The rising cost in China is not just manpower costs. On taxation, the "super national treatment" of foreign-funded enterprises is also failing. After the implementation of the new enterprise income tax law and its implementing regulations in 2008, the preferential tax policies for reinvestment, tax exemption and periodic tax reduction and exemption from foreign investment enterprises and foreign enterprises were cancelled. In addition, the pressure of RMB appreciation has led to the overall rise in the cost of foreign enterprises in China, and it is also one of the important reasons for foreign companies to withdraw from China.