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Chinese apparel units go all out to retain workers
Feb '12
The debt-crisis and the resultant fall in orders has come as another challenge to the Chinese textile and clothing sector, already reeling under the crisis of labour shortage and persistent hike in wages.

Since the textile and garment sector is a labour-intensive sector, the harsh reality of labour shortage and wage hikes is particularly hitting those who still operate on old technologies.

Only the large-scale textile and apparel companies are able to retain workers by hiking wages and introducing welfare policies for the workers.

Small and medium size units are the hardest hit as they are not able to afford higher wages considering that they are already operating at low margins.

For instance, Hongdou Group alongside increasing wages has also introduced a variety of benefits to retain workers.

According to an official of Hongdou Group, “A workers monthly salary averaged more than 3,000 Yuan last year and we also have many workers whose annual salary is more than 40,000-50,000 Yuan in our Group.

“In addition, Hongdou Group hired 39 vehicles to send their workers home for enjoying New Year Holiday or reimbursed their travel expenses. It is reported that Hongdou Group invested nearly 2.3 million Yuan into such initiatives for the New Year Holiday.

In addition, Hongdou Group said, the company has also set up a staff university to help workers enhance their skills, who can also be promoted from their excellent performance.

Due to these initiatives, the Group does not have to worry about labor shortages.

Fibre2fashion News Desk - China

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