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Textile workers quit jobs under declining wage pressures

12
Sep '08
Since the start of this year and after the introduction of new labor law, the outflow of workers from textile enterprises has accelerated. This is largely due to the fact that lower wage levels and the intrinsic quality of being a labor intensive industry have compelled a large number of workers to move to other avenues like guesthouses, hotels and other businesses that offers better working environment.

Presently, the average wage of workers in the textile industry is 30 percent lower than those offered in other sectors. Experts believe that it's high time this gap is wage levels be narrowed in order to retain workers.

In fact, a number of enterprises in the coastal areas have been facing recruitment difficulties which directly reflect on how low the level of salary and social welfare is these regions. A survey report revealed that in 2006, social security of China's textile industry related worker accounted for only 11.3 percent of wage income, lower by 10 percentage points than the national average.

Dadong Group based in Nantong is pursuing a practice which has helped in workers getting better wages and social security measures. Inspite of rising input costs, it has largely digested the increase in costs but has also managed to maintain a sales profit margin of about 7 percent.

The enterprise pays 39 percent of the social welfare for workers while the workers themselves pay 16 percent together forming a proportion of 55 percent. The factory also provides workers with subsidized lunch every day at a nominal cost.

Usually, when the pay of workers is higher, it forms about 20 percent of the production costs but presently it accounts for only 15 percent. Even buyers from the US and other overseas market expect that enterprises pay labor insurance to workers.

Moreover, some of the domestic companies have also taken alternative approaches like setting up of technical schools to overcome shortage of trained labour.

Fibre2fashion News Desk - China


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