Textile Industry: Looking for sweetness in rising wages

Business News Agency August 9th At the joint launch of the 2010 China Textile and Apparel Corporate Social Responsibility Report, Du Yuzhou, President of the China Textile Industry Association, introduced that in the first five months of this year, the number of workers in China’s textile industry increased by more than 1.3% year-on-year. The total amount has increased by about 14%. At the same time, the industry’s sales revenue has also increased by 27%, and profits have increased by about 60%. "On the surface, 'recruitment difficulties' and 'wage increase' may be a constraint factor in the future development of the industry, but it can also be a factor in the promotion of industrial upgrading."

Management and upgrade technology can absorb the cost of incremental <br> <br> the first half of this year, above-scale textile enterprises pay rise of up to 14%, companies mention salary increases Pearl River Delta, Yangtze River Delta and even reached 20%, but the scale In the unit cost of the above companies, the proportion of wages actually decreased by 9.1%.

Du Yuzhou believes that such gratifying changes reflect the thinking of the textile industry in transforming its development approach. The core content is to further promote people-oriented development. Textile powers do not rely on low labor costs, but rely on improving people’s creativity in science and technology, branding, and other aspects. “If we do not attach importance to the creativity of workers and do not create sustainable development conditions for them, we will at most buy some advanced equipment and we will not be able to achieve independent research and development capabilities. Our industry will also lose its main driving force.”

The textile industry is the single most-used industry in China. As early as 2007, the entire industry has already felt the pressure of rising labor prices. Since then, more and more companies have begun to try to use equipment, processes, and technology upgrades to absorb the incremental costs of rising labor costs.

Take China's knitting industry leader Changzhou Xurong Knitting Printing and Dyeing Co., Ltd. as an example. In 2009, the working time of Changzhou Xurong workers was 85.7% in 2007, and the salaries increased by 41.2% compared with 2007. However, the total profit of the company increased by 381.13%, relying mainly on the R&D investment and the development of employee execution.

Each year, Xurong Company uses more than 3% of its sales revenue for R&D. It takes only 3 to 6 months for new products to start production, and thousands of new fabrics are being developed each year. Such a high update rate not only adapts to changes in the market and can satisfy more market demands, but also has low energy consumption, low emissions, lower costs, and higher prices, so it is entirely possible to double profits.

"In the international textile market, 'Made in China' is not synonymous with low prices. Everyone thinks that it is medium-to-high-end goods." Chang Zhuang Rong Wing Knitting & Printing Co., Ltd. Chairman Huang Zhuang Fang Rong introduced, now, like whitening milk fiber, Nano-fabrics that can cool off heat, degradable garments that are entirely derived from waste plastics, and other environmentally-friendly functional high-end textile products are becoming the main products of Chinese textile companies.

Harmonious labor relations but also the competitiveness of enterprises <br> <br> From another perspective, rising wages is the inevitable result of social development, but also an important part of corporate social responsibility, participation in international competition, the harmonious labor relations is also often competing One of the important manifestations of force.

Huang Zhuang Fang Rong introduced that "factory inspection" is the past that China's textile and garment processing enterprises won the export orders must pass, the process of factory inspection will generally experience more than a year, and the procedures are cumbersome. Now, with the certification of CSC9000T, the social responsibility management system of the Textile Industry Association, foreign customers have very much recognized the reputation of the company, and the orders are more happy, the cycle of receiving orders is shortened, and the troubles of factory inspection are avoided. In fact, it is creating profits.

China's textile industry has been promoting the construction of the social responsibility management system CSC9000T for five consecutive years. The system covers 12 inspection factors, and there are nine related to labor relations, such as wages and benefits, labor time and intensity. This work was originally started on the basis of cracking off foreign trade barriers and accusing the Chinese textile enterprises of being “sweatshops”.

In the process of building corporate social responsibility, many companies have also found that the increase in labor costs is not a scourge, and can be completely digested by improving processes and processes.

“Emphasis on compensation and benefits will increase costs, but it can absorb the increase in costs by improving management and improving efficiency.” Ye Zhiwei, Deputy Director of Quality System Management Department, Dajin Garment Factory (Huizhou) Co., Ltd. And welfare increased by more than 11%, but business productivity also increased by 17.5%. "Employee benefits and corporate benefits are not absolutely antagonistic. On the contrary, the increase in labor prices has prompted companies to improve their technological processes, raise their technological level and reduce their circulation costs. They have greatly improved their management and achieved a win-win result for both social and economic benefits. ."

Huang Zhuangfang Rong introduced that the current labor price in Cambodia is only half that of China, but the Chinese textile industry has a complete industrial chain, high-quality employees, and strong competitiveness. Therefore, we should cherish the comparative advantage of this labor force and pay more attention to employee value. Excavation.

"The word 'enterprise' is no one's end. Human resources are the driving force for the company's advancement, not the burden." Xu Rongfang, general manager of Jiangsu Danmao Textile Co., Ltd. introduced that the international financial crisis allows companies to realize that only the talent effect can be used to make The company's steady and rapid development. Last year, 250,000 yuan was invested in 13 different types of vocational training, and 40% of the employees benefited. “Only by twisting employees' own development and enterprise development into a rope, this kind of development will be more powerful.” lasting."