It Has Been Shown that Labor Costs in China Are Increasing

This also can be seen from the increasingly serious of the recent "shortage of migrant workers". There was shortage of the front line workers. This also shown that the new generation of labors have more and more higher wage expectations and life hopes, which make them do not want to go to labor-intensive factories or foundry enterprises. From Fox Conn's wide and continuous recruitment coverage, it is obvious. As for resting places for settling of Adidas, Cambodia or Thailand of Asia are possibilities. We can learn from the recent break of Adidas Cambodia "sweatshop" scandal away from happening.By report, licensed merchandises should be produced aiming to the London Olympic Games, and garment factory workers in Cambodian are the sole people group who can earn fifteen dollars weekly from Adidas. Weekly, workers have to go to work six days, and they are going to work ten hours per day for maximum. It was said by these workers that the condition where they worked was severe. The salary per month is 61 dollars supposing they work six days a weekly and work eight hours per day, what's more, there will be five dollars for the payment of health insurance. But it was recently responded by Adidas that the salary per month for its Burma factory workers was 130 dollars (about 828 Yuan RMB) . By comparison, workers in Suzhou can earn more than 3000 Yuan per month averagely, and this salary level is Burma workers' 3.6 times.As a matter of fact, Adidas was not the only one who has aware of China's rise on labor costs and its compress on earning spaces. In the early March 2009, Nike that is the number one sports brand all over the world closed its only footwear production facilities' Taicang plant. Its footwear production business under the management of the Winterthur Group were transferred to other parts of Asia that belonged to Winterthur. These large multinationals, however, all reserve for skills and are not going to retreat totally without reservation. For example, Adidas emphasized just shut down the affiliated factories, and will not close the OEM factories. It was said by Hainer that in China, the production proportion has been lessened, but China's foundry production number is not going to decline, and no Chinese markets are going to be shut down.In fact, this action was to transform the rising pressure of labor costs to local foundry enterprises. The reason was that Adidas only needed to place orders to OEM factories, but do not need to consider the labor costs. In order to consider orders, only OEM factories' profits will be compressed. What's more, other transnational corporations usually took this practice as well. The First Agricultural Economy commented that Adidas, Nike and other multinational companies gradually moved from mainland plants, and this indicated that China's labor costs are increasing step by step. Normal 0 7.8 Å 0 2 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:nh<; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

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