Labor Cost Is The Biggest Burden Of Manufacturing Industry.

The increase in labor costs is domestic. Processing and manufacturing In recent years, the enormous challenges faced by the industry, no matter how effective the enterprise is, is to ensure that the treatment of employees is significantly improved every year. Otherwise, labor shortage may be faced. The enterprises interviewed told reporters how to stabilize employees and ensure the treatment of their employees has become a top priority for the survival of enterprises. Faced with raising labor costs by at least 10% per year, manufacturing companies regard labor cost pressures as the first difficult problem.

　　 Labor costs increase by at least 10% a year.

"The cost of labor has been increasing at least 10% per year." The data provided by Lv Mingyi, general manager of Jiangsu Kunshan Ming Ming Machinery Co., Ltd., is very representative in the manufacturing industry.

The enterprises interviewed basically indicated that the annual labor cost increased by no less than 10%. For example, Sun Min, general manager of Suzhou Wei Lin shelf Manufacturing Co., Ltd. told reporters that the cost of employing enterprises grew steadily by more than 10% per year. Shen Xuyu, manager of Kunshan Shuo precision mould Co., Ltd., told reporters that the employment cost of enterprises increased by 10% in 2013 than in 2012.

According to the survey results of small and micro enterprises conducted by the Zhejiang investigation team of the National Bureau of statistics in the second half of this year in Hangzhou, Quzhou, Zhoushan and other cities, the salaries of small and micro enterprises in Zhejiang now increase by 10% to 20% a year, and the difficulty of recruiting workers and rising labor costs is the most difficult problem this year, the proportion of which is as high as 41.6%.

In fact, labor costs not only make SMEs "pressure mountain", even multinational companies seem to be unable to bear. Last year, Adidas closed its factory in Huawei, Suzhou, and transferred the production line to Southeast Asia, which is interpreted by the industry as being driven by the cost of labor.

It is understood that, like ADI, Nike, Puma and other international garment processing enterprises are more sensitive to labor costs, ordinary enterprises will control labor costs between 20% and 30%.

However, international market It is not just China that has higher labor costs. For example, although the average labor cost in Africa is lower than that in China, the analysis of the Wall Street journal shows that in 2010 and 2011, the manufacturing cost in Ethiopia increased by 18%, while in the same period it increased by only 7.7% in China. It is estimated that the cost of production in Africa will be higher than that in China in 2019.

In this sense, as long as Chinese enterprises actively respond to the problem of labor cost, the competitiveness of overseas rivals will gradually weaken in the long run.

　　 Coping in many ways

In the face of increasing labor costs, small and medium-sized manufacturing industries often rely on expanding orders.

Hu Rongjun, the business Commissioner of Kunshan Lihong (ultrasonic) Industrial Co., Ltd., told reporters that the cost of labor has been rising. The average wage of workers in the first half of the year has increased by more than 200 yuan over last year. No matter how the business is, every year, some employees must be raised, and the cost of employment is higher and higher. This year, the skilled workers in his factory do not pay overtime, and the monthly salary can be more than 5000 yuan. If the peak season is paid overtime, it can get six thousand or seven thousand yuan a month.

Faced with the high wages of small businesses, journalists want to know whether the high wages of such ordinary workers are individual phenomena, or is a common phenomenon. Hu Rongjun said that workers in Kunshan usually have a minimum wage of three thousand or four thousand yuan a month as long as they work normally, regardless of age or technology. Even if they just get out of work, they have to pay about three thousand or four thousand yuan in monthly wages, so that enterprises can retain people.

The government is also doing something about raising the cost of employment. policy Adjustment in order to better support enterprise development. For example, in October this year, Shanghai adjusted the proportion of urban employees' social insurance contributions through the adjustment of the city's overall social insurance contribution rate, and overall raised the proportion of enterprises' payment, so as to lighten the burden of enterprises. This is considered to be a reduction in the cost of enterprise employment and has been welcomed by enterprises. For example, the proportion of contributions paid by the basic old-age insurance for urban workers is adjusted from 22% to 21%, and the proportion of basic medical insurance premiums paid by units has been adjusted from 9% to 9%.

When asked what measures their enterprises should take to raise the cost of labor at present, Hu Rongjun replied, "fortunately, the order of enterprises is going up quite well."

Sun Min, general manager of Suzhou Wei Lin shelf Manufacturing Co., Ltd., told reporters that the burden of taxes and fees is heavy, export orders are hard to win, and annual labor costs increase steadily. These are all problems that may be faced by export-oriented manufacturing industries. But he believes that the biggest burden is in the cost of labor. In terms of employment, one is the improvement of the per capita treatment of employees, the other is recruitment difficulties, and the third is the relatively large turnover of employees. Combining the three aspects makes the employment problem a key problem for all enterprises to solve.

To retain employees, enterprises must first of all have good benefits, and secondly, leaders need to give employees some kind care.

Shen Xuyu, manager of Kunshan Shuo precision mould Co., Ltd., told reporters that he could only rely on selling more and more products, and small profits and quick turnover to deal with the increase of wages. If you do not pay attention to improving employee benefits, recruit new employees not only need to spend money on training, but also affect the efficiency and quality of production, and greater losses.