The impact of wage increase on OEM shoe enterprises in the Pearl River Delta

in the investigation, the reporter found that Foxconn’s substantial salary increase directly affected the OEM enterprises in the Pearl River Delta

in Dongguan Houjie 1ndustrial Park, Yang Jin, HR Director of Haocheng Shoes Co., Ltd., told China Economic Times: “no matter whether Foxconn increases the salary or not, other OEM enterprises have to increase the salary. Because of the lack of workers, they have to recruit workers by increasing the salary

take Yang Jin’s shoemaking enterprise as an example, in order to recruit workers, the salary of general workers reached 1200 yuan and that of technical workers reached 2000 yuan last year. Yang Jin said: “from the second half of last year to now, enterprises are constantly raising wages. Now the wages of technical workers have reached about 2500 yuan, and there are 3000 yuan, but they are still underemployed.”

according to a recent survey of Hong Kong enterprises in the Pearl River Delta conducted by the Chinese manufacturers’ Federation of Hong Kong and the Hong Kong Trade and Development Council, 150 of the 160 Hong Kong enterprises surveyed, or more than 90% of them, are facing the problem of labor shortage. According to the estimation of the shortage rate, the overall number of employees is 29517, accounting for 20.8% of the total number of employees of 160 Hong Kong enterprises in the Pearl River Delta, which means that each enterprise is short of 197 workers on average

industry insiders said that at present, the supply and demand pattern of China’s labor market is undergoing fundamental changes: the rural surplus labor force has changed from unlimited supply to Limited surplus, and the era of continuously obtaining labor supply from rural areas without increasing wages has passed

Back to list