The continuous high level of domestic CPI and the implementation of the "Labor Contract Law" have led to a significant increase in the cost of labor in China, and the existence of a large number of low-cost labor forces was an important reason for the rise of the fastener "Made in China". When the labor force no longer equates to low prices today, “Made in China†clearly welcomes its “growing painsâ€.
A Ningbo fastener company boss calculated a sum of money for the reporter. Now, in addition to wages for employees, the factory also pays pension insurance, work-related injury insurance, etc., with an average of 300 yuan per person per month, and a 600-person company. The annual fee of this year is as high as nearly 200,000 yuan. Before the implementation of the Labor Contract Law, this fee was basically saved.
In fact, in addition to the implementation of the "Labor Contract Law," the increase in employee welfare expenditures, and the increase in the level of labor wages are also important factors for many enterprises to attach importance to unprecedented importance because of the "labour force" as a production factor. Fastener manufacturing is most typical for labor-intensive companies. Take Shanghai as an example. Last year, the minimum wage for workers was 840 yuan per month, and in April this year, it increased to 960 yuan per month. The large increase in wages has caused some people's worries. Industry insiders worry that if labor costs increase by 30%-50%, how many Chinese fastener companies can survive?
Three years ago, before the establishment of the Wenzhou Fastener Industry Association, a survey was conducted on the entire industry. The survey resulted in a total of more than 3,000 companies in the industry with an annual gross output value of more than 10 billion yuan, and the recent survey of companies in the industry It was found that there were only 2,000 companies in the entire industry, and the number of companies declined rapidly, which surprised the entire industry.
The reasons for this period, in addition to changes in the exchange rate of the renminbi, raw materials rose too fast, there is a very important one is the implementation of the "Labor Contract Law," so that companies pay to improve the salaries and benefits of workers. For fasteners "Made in China", whether it is a local company or a foreign-funded enterprise, the "labour force" can no longer concise the word "low price" before it. Being accustomed to many years of "low-cost labor" thinking in the manufacture of China, it is clear that it has encountered its own labor force.
For fastener companies that rely heavily on labor costs, the most pressing issue is whether they can transform the formerly extensive labor management into refined management, thus transforming the labor force into competitiveness.
China's fastener companies are facing the challenge of competing with multinational fastener companies. In addition to such concerns as marketing, branding, products, and technology, such competition requires advanced thinking. .
Among the domestic top 10 fastener companies, one thing worth pondering is that the more companies that maintain market leadership, the higher their degree of concern for workforce management and the control of the turnover rate of employees. Within 3%-5%.
In fact, as the most active and most dynamic factor in the production process, it is very necessary for the management of the company to combine the characteristics of the new era, strengthen the use and management of the labor force, and pay attention to examining the needs of the employers and employees in order to obtain a highly efficient workforce system. For fastener companies, how to transform the labor force into a competitive one will be the key to whether “Made in China†can maintain a large fastener country and a strong fastener production country.
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