Esse Shoes Reasonable Wage Level As A Key Element

In recent years,

Rising costs make many international brands look like Ethiopia.

In Ethiopia, labor costs are low, resources are abundant, the government has no minimum wage, no tax is concerned, and the political environment is stable.

Therefore, not only Chinese enterprises have chosen Ethiopia to build factories, but also brands such as H&M are turning to Ethiopia.

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In 2013, exports of Ethiopia and textiles accounted for 3%, but according to government estimates, the figure is expected to double this year.

Corporate investment, Reuters reported.

First of all, it should be a rich and cheap labor force.

It is reported that Ethiopia's monthly starting salary is between $35 and $40, which is much lower than the average wage of the Chinese manufacturing industry for 629 US dollars per month.

In Bangladesh, textile workers earn at least 68 dollars a month.

After the factory accident, the minimum wage increased.

The government's ambitious pformation and upgrading plan did push the Ethiopia economy to grow by 10.4% a year from 2010 to 2014.

The plan also hopes to bring Ethiopia into middle-income countries by 2025.

As part of the plan, potential industries such as textiles and leather have become a priority industry for foreign investment.

For this reason, the Ethiopian government is reluctant to set up a minimum wage and is afraid of losing foreign investment.

But the Ethiopian trade union will still strive to ensure a reasonable wage level, because only in this way can the industry be more sustainable and avoid any objections from downstream.

Related links:

What are the challenges and opportunities facing the development of global footwear industry? What are the future trends? The international free trade in a fair environment has become the most recent topic in the industry.

Matt Priester, chairman of the FDRA, emphasizes that the United States is the most importing country in the global footwear industry, accounting for about 22.3%. However, the tariff on the footwear imported into the US market is too high, which has many adverse effects.

WTO (WTO) consultant Xiaobing Tang called for tariff reductions to be received by the EU representatives.

According to foreign media reports, the future trend of the global footwear industry will also include demographic changes, the rise of emerging markets, the strength of brands, the vitality of online retailing, and the sustainability of footwear production.