China'S Manufacturing Industry: Dual Suffering Of "Employment Panic" And "Revaluation Panic"

As Asia's largest Spin Fabric production and trading center, Shaoxing, Zhejiang, requires 1 million migrant workers from abroad every year. But this year, Shaoxing exported large and remote labor force to the poor mainland. Recruitment But for the first time, it was officially rejected.

"This is the first time in history." Zhang Hao, deputy director of Shaoxing Employment Management Bureau, said, "they used to ask us to recruit people, but now they do not welcome us."

Zhang Hao said that the Employment Authority will require enterprises to report employment demand every year, and then provide recruitment information to the employment management departments in Sichuan and Chongqing, and organize workers by the other side. Over the years, the work of exporting workers and importing places has served as a service for the government and enterprises.

The Shaoxing Employment Management Bureau is more upset that Sichuan and other employment management departments also sent people to the Yangtze River Delta region to visit migrant workers in this province. "The purpose of the visit is to mobilize the migrant workers to go back to work because local people are also beginning to lack employment." Zhang Hao said.

Coastal manufacturing base and western region began to compete for labor force. "Of course, would you like to go back or look at the migrant workers?" wages The game of treatment. Zhang Hao said.

In 2010, a sample survey was conducted by the labor and Social Security Department of Shaoxing. More than 75% of migrant workers expected to earn more than 1800 yuan per month. They should eat and live at least one day a week and pay in full and on time.

"Most enterprises in Shaoxing can not meet this requirement." Zhang Hao said.

In Yiwu, the world's largest small commodity distribution center, business owners are also beginning to worry about how many employees will come back after the Spring Festival. Huang Yunlong, director of the Employment Administration of the Voluntary City, believes that the key is that the gap between the wages offered by the enterprises and the ideal level of the workers is too large, causing the workers to change jobs frequently or go back to their hometown to find another way out.

"Take less than four hundred or five hundred yuan a month, and I would rather go back to my hometown, because all kinds of expenses are left behind." At the Hangzhou Railway Station, Liu Xiangdong of Jiangxi clearly stated that he would not work again next year. "Unless it can earn three to four years, this is certainly not possible."

Zhuji, Zhejiang, is the largest stocking production base in the world, producing 4/5 of the world's socks. Luo Fang, chairman of Zhuji Xin run socks Co., Ltd., said he understood the workers' ideas, but the profits of textile enterprises were already on the margins of the profits and losses, and there was little room for raising wages.

"In 2010, the foreign trade situation is very good, orders are 30% more than that of last year, but no money has been earned, cotton yarn prices doubled, and RMB appreciation increased by 3%. Where is the profit raised to employees?" Luo said, "cotton prices are stabilizing now, but the renminbi is still appreciating. We are all waiting to see and do not dare to let go."

In January 14th, the central parity rate of RMB against the US dollar was 6.5896, and it was 101 basis points on the basis of the previous trading day. In 2010, the RMB had appreciated by 3%. In 2011, less than half a month later, the renminbi went through a continuous appreciation.

Geithner, the US Treasury Secretary, pressed China again on a recent speech at a famous American university to demand a rapid appreciation of the renminbi, saying it would decide the US response to many of China's demands.

"Export orders generally have a settlement period, and now the appreciation is too frequent. At the time of settlement, the reserved profit space has been digested by appreciation, and the enterprise has no money at all." Luo Fang said.

Zhou Xiumei, chairman of Zhejiang step man socks Company Limited, said that large enterprises with the right to speak can find ways to lock in the exchange rate or settle in Renminbi, but the survival of small businesses is very difficult.

"Many small businesses here have been scared and shut down." He Jiantao, vice president of Zhuji socks industry association, said, but big enterprises are still supporting, because the profits of the textile industry are between 3% and 5%, and now it is basically a state of no profits or losses.

Zhou Xiumei said that enterprises can only give more mental benefits and emotional benefits to employees, and the space for wage increases has been very small. In order to enhance her feelings with employees, her way is to organize corporate employees' meals and sing to KTV every month.

Instead of cash benefits, mental welfare is another way to retain employees. On January 3rd, the first working day of the new year, Orans Limited by Share Ltd in Taizhou Luqiao District led the company's senior leaders to bow at the gate 90 degrees to greet frontline staff.

This video has been widely circulated online, causing netizens to watch. But most netizens believe that bowing is not as good as raising wages.

Zhuo Yongliang, director of the Zhejiang development and Reform Institute, believes that Zhejiang has always been regarded as the best place to treat employees. But when the business owners are unable to retain their employees on their own strength, and when the profit margins of enterprises are becoming increasingly narrow, the capital will consider leaving the manufacturing industry.

Yang Ping, who manages the craft curtain in Yiwu Small Commodity City, said that the appreciation of the renminbi has become a foregone conclusion. Whether the rapid appreciation is in place or the slow pace is going on, the enterprise has to undergo painful torment.

A previous survey by the Zhejiang provincial private enterprise promotion committee showed that the local private enterprises have obviously shown a "33 system" distribution in terms of capital investment: 1/3 of capital in industry, 1/3 in the stock market, and 1/3 in real estate.

"A lot of small and medium business owners are not thinking about how to develop in the future, but whether factories are closed or open." Zheng Yumin, President of the Zhejiang Provincial Association for promoting private enterprises, said that this is a dangerous signal, because the manufacturing industry bears most of the employment, and once the capital loses interest in industry, it is still the migrant workers who suffer the last.