Analysis Of Series Of Arrears Of Wages After The Reduction Of Labor Costs In Shoe Factories

On New Year's day in 2012, when everyone was sending messages to bless New Year's day, there was a shoe making business in Liucheng street, Nanan.

"It's closed."

Seeing the arrival of reporters, Hong said helplessly.

Mr. Hong's shoemaking workshop began operation in 2007. "The best time is in 2009 and 2010. Orders are not lacking, and wages are reasonable."

Mr. Hong said.

Since then, Mr. Hong has been expanding the scale of processing workshops, from the first 8 machines to more than 20 now, and the most recent purchase was in early 2011.

However, since March and April of 2011, Mr. Hong has found that the market has changed.

First of all, it seems that the shoemaking workshop like itself seems to have grown up overnight, "many of the old staff of some factories and even managers themselves."

Mr. Hong said.

Next, worse things happen. Due to the increase in the number of processing shops, the serious stock of sports shoes and the slow growth of orders, the factory starts to keep down the price of workers when outsourcing orders.

Mr. Hong's workshop was engaged in the processing of the shoe upper and the suture of the shoe upper and the sole. "In 2010, the cost of processing a pair of adult sports shoes was about 4 yuan, and it was generally reduced to 3 yuan in 2011, or even lower."

"When the price of labor falls, the workers are the first to protest."

"In general, a worker can process 20 to 30 pairs of shoes a day and 400 to 500 pairs a month," he said.

In 2010, processing a pair of shoes 4 yuan, workers can get around 1800 yuan a month; in 2011, the price of labor dropped to 3 yuan per double, workers can only get 1500 yuan a month.

The more debt goes, the more.

In order to keep the workshop going on, Mr. Hong had to earn some of the money he earned.

"It should be from the second half of 2011 that it will become more and more difficult to collect processing fees from factories."

Mr. Hong's wife told reporters that some of his orders were received from his relatives' factory. Under normal circumstances, he would not be defaulted on processing charges.

But in 2011, because of the fact that "upstream suppliers are no longer on credit, they demand cash payment, and the market is not very prosperous, the factories have not sold hundreds of thousands of goods," so they have been defaulted 90 thousand yuan in processing fees.

"The factory can default on our processing fees, but we can not default on the wages of the workers. If we want to continue to operate, we need to put more capital into it."

Mr. Hong finally had to choose to close the processing workshop.

In fact, the arrears of wages and payments have become the determinants of the survival of workshops.

In 2009, Mr. Zhou, who lives in Lun Cang Town, Nanan, opened a small workshop for plumbing and heating. He bought parts and assembled them, and then distributed them to dealers everywhere to earn the difference.

"For two years, it has earned about two hundred thousand yuan, but has been owed $about three hundred thousand in loans, and is still filling in the money and demolished the east wall to make up for the west wall."

Mr. Zhou hopes to be entrusted to this year's Spring Festival. "I don't know how much money can be recovered, but now I don't want to make money, as long as I don't lose money."