Foxconn'S Salary Increase Event "Catalyzes" The Evolution Of Enterprises In The Pearl River Delta

　　 Mr. Xu from Taiwan has opened a factory in Dongguan, Guangdong Province for 14 years, mainly producing Christmas colored balls, Christmas pendants, etc. Almost all products are sold to Europe and the United States. "Business is getting harder and harder," he said frankly

"Shenzhen Foxconn pay increase event After the strike with Foshan Honda, I felt that the mentality of the workers had changed. Now it is difficult to recruit workers, and the required wages are high. The enterprises around me are seriously short of workers. " He said.

The Pearl River Delta is famous for its huge manufacturing capacity“ World Factory ”Hong Kong funded and Taiwan funded enterprises are the first to enter the Pearl River Delta and drive the rapid development of local manufacturing. However, after the financial crisis, the changes in the operating environment in the Pearl River Delta have doubled the pressure on Hong Kong and Taiwan enterprises.

The recent survey report of the Chinese Manufacturers Association of Hong Kong on 222 member enterprises operating in the Pearl River Delta shows that among the factors that most perplex Hong Kong funded enterprises, rising labor costs rank first. In addition, the rise in the price of raw materials, the additional costs and risks caused by labor laws and regulations, and the risk of changes in the RMB exchange rate have also brought heavy pressure on enterprise operations.

The survey shows that 60% to 80% of Hong Kong funded enterprises believe that the above factors have caused a "serious" or even "very serious" impact. Low labor cost was once the "magic weapon" to attract foreign investment. Now, more than 90% of the interviewed enterprises report that they are short of jobs.

At the same time, the local government's requirements for improving the treatment of workers are also more clear. In May this year, Guangdong Province began to implement the new minimum wage standard, with an average wage increase of more than 21.1%. With the promotion of the trade union, the collective wage negotiation system is also being accelerated throughout the province.

"In fact, in recent years, enterprises have been preparing to move away Pearl River Delta However, the Foxconn incident has intensified this process. Now many Taiwan funded enterprises are waiting to see the subsequent impact of this event and reassess their living environment. " Cheng Fengyuan, president of Guangzhou Taiwan funded Enterprise Association, said.

Cheng Fengyuan has his own Industrial Jiafeng Decoration Materials Co., Ltd. He has not considered moving before, but recently he decided to build a new factory in Chaohu City, Anhui Province, and move part of the production line after completion.

　　 "The cost there will be much lower. In terms of wages, the average wage of factory workers in Guangzhou has reached 2500 to 3000 yuan, but it is estimated that only about 1500 yuan will be paid there. Of course, I will not move all industries there, because the Pearl River Delta has a complete set of industries and convenient transportation conditions."