There Shows an Increase on China’s Labor Costs

We can learn from the "out-of-town laborers" that was increasingly serious recently. 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. It is also an evident thing that Fox Conn begin to hire workers widely and uninterruptedly. But Adidas's migration resting places are likely to be Southeast Asia's Cambodia or Thailand. 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. Workers need to work ten hours a day at most, and need to work six days a week. These workers said that their working condition was poor. If they work eight hours a day and last six days a week, the salary monthly is 61 dollars, while the health insurance fee is five dollars. In recent days, however, Adidas made the response that they paid their workers in Burma plant 130 dollars monthly (that is equal to 828 Yuan RMB or so). In contrast, the average wage monthly in Suzhou plant will be no less than 3000 Yuan, which is 3.6 times higher than workers in Burma.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 instance, Adidas stressed to only close its direct plants, but it was not the same picture of foundry plants. 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.As a matter of fact, this meant to shift the workforce costs' rising stress to OEM businesses in the locality. 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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