Home / Knowledge / News / Textiles / New labor law burden on clothing industry?
New labor law burden on clothing industry?
28
Jan '08
China has implemented a new labor contract law on January 1, according to which employees cannot work more than forty hours per week and if they do, the employer has to pay. This led to the increase in production cost. As a result garment manufacturers raised the prices of final products.

The New labor contract law, further, requires the employers to shoulder higher social insurance and housing allowance for their employees. At the same time, enterprises cannot easily expel workers, thus making textile mills lose flexibility in facing demand changes.

Industry experts estimate that this law will increase operating cost up to 30 percent. Enterprises will also have to pay for staff welfare five times higher than the original level.

The enactment of this new law has just come at the time when competitiveness of China's clothing industry is relatively weak. The average annual salary of the employees will increase by 10-15 percent. Although by the standards of the West, the labor cost still remains cheap.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Kraig Laboratories

Textiles | On 28th Mar 2017

Kraig gets certificate for silk production in Vietnam

Kraig Biocraft Laboratories, Inc., a leading biotechnology company...

Information Technology | On 28th Mar 2017

Intex Consulting signs partnership with Kawan Era Baru

Germany based Intex Consulting GmbH has entered into a strategic...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search