No Reduction Of Shoe Companies Is Confidence In Future Economic Development

Compared with the rising tide of layoffs in the west, Chinese enterprises are more eye-catching and are "no layoffs and fewer layoffs" initiatives and actions. This is a rare phenomenon in western society where individualism prevails. Compared with the "economic disaster areas" such as the United States, China's economic trend is not so frustrating, but it can not be described with sunshine. According to the data released by the National Bureau of statistics in January this year, the "business climate index" and "entrepreneur confidence index" in the fourth quarter of 2008 were significantly reduced by the financial crisis: the former was 107, approaching the critical index 100; the latter was 94.6, down 29.2 from the previous quarter, and the collapse of the index means that layoffs will inevitably arise. The layoffs did appear, and the scale should not be underestimated. But compared with the wave of layoffs in the west, Chinese enterprises are more eye-catching. They are "no layoffs and fewer layoffs" initiatives and actions. This is a peculiar phenomenon in the western society that is prevalent in individualism and rarely seen in the ownership of the whole people. Analyzing the reasons behind this phenomenon and its influence and Inspiration on enterprises may provide a unique perspective for us to understand the downsizing of enterprises in the downward economic environment. Since the end of last year, various forms of "no layoffs" initiative have been heard almost everywhere in China's enterprises. "We urge the enterprises in the city to shoulder the social responsibility and limit the production to the maximum extent, stop production, not lay off workers, pay wages without pay, and wait for posts without pay." In February 16th, the joint initiative of 116 entrepreneurs in Xiangfan city was quite representative. Thousands of enterprises in Shanghai, Shenyang and Ji'nan also issued "no layoffs". Li Junping, a member of the Shaanxi Provincial Committee of the Chinese people's Political Consultative Conference (CPPCC), was a high-profile member who said he would bring the two sides to the two sessions. It is only possible to bring the initiative to the two sessions, which is only possible in the socialist China with the ownership of the whole people as the main body. To a certain extent, it reflects the superiority of the Chinese system. But in the economic downturn, Chinese enterprises have shouted "no layoffs". Where do they come from? Professor Wang Chunhui, director of the China Law and Commerce Research Institute and director of the law department of the China Development Strategy Institute, said in an interview that "the non layoff initiative of some Chinese enterprises is mainly put forward under the guidance of our country's macroeconomic policy. If our country's macroeconomic policies are very bad, such an initiative without redundancies is impossible even if it is said. " The leaders of the non layoffs initiative are state-owned enterprises. The SASAC of the State Council specially issued relevant notices and documents requiring state-owned enterprises, especially large state-owned enterprises, to take the lead in undertaking not to lay off workers. Wang Chunhui believes that commitment is not a layoff is the first confidence, and leading the Chinese economy of state-owned enterprises to take the lead, not to lay off, no doubt at the same time increased the confidence of private enterprises in the face of crisis. He pointed out that this confidence is not generated from nothing, but has strong backing: on the one hand, the state's macroeconomic fundamentals are better, China's foreign exchange reserves are close to two trillion dollars, the sum of foreign debts is less than sixty percent of GDP, and financial supervision is very strict; on the other hand, the central government has implemented a proactive fiscal policy and moderately easy monetary policy, and at the same time, it also has the following advantages. 4 trillion of the investment plan has been set up, which is especially effective for stimulating domestic demand and employment, and has achieved remarkable results now. Wang Chunhui thought that the greatest benefit was that in the third Plenary Session of the 17th CPC Central Committee, the meeting changed the dual system of urban and rural areas, and established the land transfer system. The peasants' land could not only be leased, subcontracted, transferred, but also shareholding cooperation, which could cooperate with the agriculture oriented industry and develop various forms of appropriate economies of scale. Based on China's macroeconomic outlook, Wang Chunhui believes that there will be no financial crisis in China. At the very least, there will be some impact on traditional manufacturing industries, especially labor-intensive manufacturing industries, so now there are more redundancies in foreign-funded enterprises and export-oriented factories. He also predicted that the downward trend of China's economy should be bottomed out in October this year. Why not lay off workers? In addition to the confidence of the state on the macro side, there is another important reason why corporate social responsibility plays an important role. Outside, enterprises do not lay off workers to shoulder more responsibilities to ensure social employment. For enterprises, they also seize the best time to establish a good image and establish staff loyalty to enterprises. But as Wang Chunhui said, the responsibility of enterprises to society is a long-term and sustainable responsibility. It is definitely not an armchair strategist. Commitment not to lay off employees must be practiced with real guns and guns. In order to gain fame or pressure, it is not worth losing. Imagine that an enterprise has 50 workers in its original assembly line, and now it has been shut down. As long as five people take care of it, what consequences can be produced without layoffs? Although China AOKANG group has not joined the ranks of "no layoffs initiative", it has implemented the practice of not laying off workers. In 2008, the company not only did not lay off employees, but also raised wages for employees. This year, the company continued to open recruitment activities. AOKANG is located in East China with the lowest confidence index of entrepreneurs, and the main industry is the most severely affected manufacturing industry. Even so, AOKANG has the commitment to make no layoffs or even raise wages. Why? China's AOKANG group talent resource center senior director, AOKANG group strategy and control project committee secretary, Changxing Xinghua told the "legal person" reporter, from the perspective of AOKANG strategy, currently the main market is domestic, the consumption potential of the one billion and three hundred million people is very huge, AOKANG has not yet failed to start work, but production has been discharged beyond this year's June and July. Strength, such as AOKANG, still needs to work hard to reduce costs, which will create a precondition for no layoffs and no pay cuts. On the first day of construction this year, AOKANG successfully implemented the labor hour reform. Workers used to work overtime until 10 p.m., and now the working hours were adjusted from 7 a.m. to 6 p.m., which not only avoided the electricity price of 1.5 times the peak period of electricity from 6 to 9 p.m., but also objectively reduced the overtime payment and increased the work efficiency. Jiang Xinghua also told reporters that for the current Chinese footwear industry, which relies solely on low-cost survival, the western region has the absolute advantages of land, energy, transportation, labor and so on. It is estimated that enterprises in Chongqing and Bishan can save 20% of the cost of producing one pair of shoes compared with the eastern coast. Therefore, AOKANG implemented the western strategy of shoemaking industry, and its cost advantage has begun to emerge. If AOKANG shows us the hardware conditions of non layoffs, Wang Chunhui will tell us that external support is not needed for enterprises to lay off workers. This support comes from the state, on the one hand, from the staff. From the national point of view, when the economic environment deteriorates, the state should create conditions for no layoffs. Wang Chunhui made a figurative analogy: if employees are fish, then enterprises have the responsibility to fish, and the government has the responsibility of releasing water. The government does not drain water. How do businesses raise fish? Therefore, the government should reduce taxes for businesses, and even subsidize employees by purchasing vouchers. As long as the government has released water, the enterprises can certainly raise the fish. From the point of view of employees, if the order is not available, the product is overloaded and the cash flow is broken, it is unrealistic and unreasonable to ask for no pay cuts or even raise wages. The vast majority of enterprises do not want to say goodbye to employees who have been together for many years. When the enterprises are capable of not laying off workers during the crisis, employees, whether executives or general practitioners, should accept a share of responsibility in the form of pay cuts. Wang Chunhui said that under the crisis, employees, enterprises and countries should take responsibility, such as emphasizing only the responsibility of enterprises, which is unfair to enterprises. Despite the strength of not reducing the workforce, AOKANG has also been hit by the current financial crisis that has hit the real economy. Resistance does not mean that we must do this. AOKANG does not lay off workers or there is a deeper reason. Jiang Xinghua, senior director of China AOKANG group Human Resource Center, said that any goal is achieved by human beings. Among all the resources of AOKANG, talent is the most valuable resource, which is AOKANG's concept. In December 1, 2008, when Ruifu global rankings first released the list of "China's most valuable brands" overseas, announced that AOKANG brand value reached 6 billion 119 million, AOKANG firmly strengthened this concept. The concept of AOKANG is also advocated by Wang Chunhui, the chief researcher of China Law and Commerce Research Institute. When giving lectures to entrepreneurs, he always analyzes the term "enterprise": the "enterprise" above the enterprise is "man", and the next is "stop". If there is no one, the business will stop. Wang Chunhui believes that we often say that customers are God, and that employees who serve God are more important than God. No layoffs bring stability and uplift to the enterprises. This is the mainstay of any difficulties and obstacles. Therefore, the IBM boss can give out heroic words: "you can take away my trademark, you can burn down my factory, but as long as you leave my staff, I can rebuild a IBM in second days." Mr. Chang Kai, director of the Institute of labor relations at Renmin University of China and a famous labor law expert, reminded entrepreneurs that workers are not only cost but also capital. For far sighted enterprises, it is a good time to reserve talents. He suggested that enterprises should decide whether to lay off their employees according to their own conditions, and reduce the number of layoffs if possible, such as pay cuts, holidays and training. No layoffs have put pressure on enterprises, but more power is still needed. Because there is no layoffs in the difficult times, the idea of reducing costs by laborers is cut off. In order to survive, enterprises can only find a new way to develop new competitive advantages from management innovation, technological innovation and brand promotion. AOKANG is doing this. Jiang Xinghua told the legal person reporter that AOKANG now regards R & D capability as a magic weapon for enterprises to break through the bottleneck of development and break through smoothly. With the idea of layoffs removed, AOKANG has devoted itself to the industrial transformation strategy centered on innovation. AOKANG's pay has paid off. In recent days, the first batch of innovative enterprises in Zhejiang announced that AOKANG became the only listed enterprise in Wenzhou footwear industry. The revelation that AOKANG does not lay off is that at present, Hunan satellite TV is playing the "ugly woman invincible II". Viewers can find that many fashionable elements have been added to the play, and Male No.1 "Fendan" has put on AOKANG leather shoes. This is the strategic cooperation signed by AOKANG and Hunan satellite TV. AOKANG group provides shoes and package products for the male and female protagonists of the play, and the AOKANG shoe brand is naturally planted in the TV series. The performance of AOKANG gave us an illusion, as if it were not a cold winter. In fact, in the fourth quarter of 2008, China's industrial enterprise sentiment index has dropped to 98.5, indicating that industrial enterprises have already entered a recession. When many companies struggle in the predicament, why can AOKANG implement the strategy of brand promotion and industrial upgrading step by step without the influence of layoffs? The answer lies in the strategic thinking of AOKANG's strategic well-being. 5 years ago, the prosperity of China's footwear industry was booming. At this time, AOKANG chairman Wang Zhentao issued a warning that "winter is not far away" at the internal meeting. "Winter jacket" does not have to be prepared in the winter. It is necessary to establish a complete risk management system and a long-term crisis response system. Development has always been. " Wang Chunhui also pointed out that crisis management should be carried out ahead of schedule. A frog is put in boiling water, it will jump out immediately, and put it in cold water, and then slowly boil the cold water, frog will be late because of the detection, and too late to respond to be scalded inside. The story of warm boiled frog illustrates the importance of risk management for enterprises to deal with crises. He stressed that in the post financial crisis era, global enterprises should focus their attention on risk management and crisis management. An enterprise does not establish a risk management system, and entrepreneurs have no risk and crisis awareness. This is the biggest risk and crisis. Even if the layoffs are rolled out, it will be difficult to recover the losses of the business. 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