Under the disturbance of Nine Dragons Paper Indust

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Sweatshop: Zhang Yin's Nine Dragons Paper storm (Part 2)

the reality of the Pearl River Delta

Zhang Yin carefully considered the establishment of a factory in Mayong, Dongguan. In the past 20 years, the industries in the Pearl River Delta and Yangtze River Delta have been the most developed. When choosing the plant site, I visited these places. As a result, I found that the government of Dongguan has a strong sense of service, and there is a perfect industrial chain here. Based on these two factors, I am convinced that the investment environment in Dongguan is extremely superior. Finally, I chose to locate the factory here. Mayong lies between Guangzhou and Dongguan and is only one river away from Guangzhou Economic and Technological Development Zone

with an average annual GDP growth rate of 18%, Dongguan has accomplished two things in the process: attracting a large number of rich people from all over the world to invest and a large number of poor people from all over China to work. The so-called Dongguan model is a combination model in which Dongguan provides land, which may be a standard factory that has been built, Sichuan, Hunan and other provinces in the mainland provide cheap labor, and foreign capital provides capital, equipment, technology and management elements. Dongguan has become the world's factory. It is at the bottom of the entire industrial chain. It has no sales channels, independent brands and core technologies. Its huge profits have nothing to do with it. What it earns is only a small wage. On the surface, Dongguan has completed the transformation from an agricultural county to an industrialized city. In fact, we have not realized the transformation and promotion of people. Farmers are still farmers

the existing foundation of Dongguan is more than 10000 processing and trade enterprises mainly relying on OEM production. The private economy is mainly concentrated in the tertiary industry such as hotels and real estate, and there are not many listed companies. Dongke keeps the shape of battery modules safe. Dongguan is facing the dilemma of double marginalization. The unreasonable industrial structure has brought about a huge population in Dongguan, as well as serious social management problems and environmental pressure. Liuzhigeng, Secretary of the municipal Party committee, said that the fundamental solution to these problems is industrial upgrading. In this century, the Dongguan model is pushing to the limit, land, electricity and other resources are becoming increasingly scarce, the prices of raw materials and labor are rising rapidly, and the pressure on environmental protection is increasing

some researchers have made calculations and concluded that Dongguan's industry is low labor productivity. An example is that in 2004, the per capita GDP output of Wenzhou's secondary industry was 36742 yuan, while that of Dongguan was 18332 yuan, which is only half of that of Wenzhou. This means that Dongguan must invest twice as much labor as Wenzhou to output the same amount of GDP. The labor intensity is higher, because 1 introduction the labor productivity is low, and the rising space of the wage level of workers is very limited. In order to achieve sustainable growth in the Dongguan model, it is necessary to continuously supplement the power supply of new workers under its globalization strategy, and the wages of these workers must be controlled within a certain level

under this series of pressures, is the introduction of the new labor contract law really the last straw? Zhaoweinan, Secretary General of Dongguan Taiwan investment enterprise association, told the magazine that at the end of 2007, workers' strikes occurred frequently in Dongguan, sometimes threeorfour times a day at the same time. The reason is not all the new laws. However, since the shortage of migrant workers in 2004, the bargaining power of migrant workers has generally improved. The emergence of the new law has a significantly greater impact on business owners than on workers

at the end of 2007, a 4000 person Taiwan funded shoe factory in Dongcheng District, Dongguan, announced its closure and paid more than 40million yuan in severance payments to its workers. Zhao Weinan commented that this is a matter of conscience. Those who have no conscience are not sound in finance. They use this excuse (the new law leads to rising costs) to walk away, leaving the mess for the government to clean up. Zhao said that there have been two such cases, and some business owners have gone to Vietnam and Cambodia to investigate and prepare to move out. Zhao doesn't think that the new law directly led to the closure of these factories, but he called it worse. Earlier, in 2006, after the implementation of the minimum wage standard of 690 yuan per month in Dongguan, a number of enterprises have closed down

the geometric difference of wages is obvious in the whole Pearl River Delta. The income distribution of a considerable number of private enterprises is greatly inclined to the management and management, while the wages of front-line workers are mostly based on the local minimum wage standard. Nine Dragons Paper also has similar problems. However, according to the conclusion of the investigation department, the salary of Nine Dragons front-line workers is slightly higher than the average standard of 1200 yuan for the same job in the same industry in Guangdong. Kongxianghong, vice chairman of Guangdong Federation of trade unions, did not agree with the qualitative conclusion of SACOM report. He told us that some of the problems reflected in the report were internal management problems of the company. What really involved in the new labor contract law was only labor dispatch. At present, there seems to be room for discussion on whether the front-line workers in the raw material Department of Nine Dragons Paper meet the relevant provisions of labor dispatch, and whether they are temporary, auxiliary and replaceable jobs

kongxianghong stressed that in fact, many enterprises used dispatched workers indiscriminately before January 1, 2008, so now we allow these enterprises to have a process to solve the problem of labor dispatch. This problem is very complex and involves many aspects. Moreover, the detailed rules for the implementation of the State Council due to the impact of wind have not been issued, and the government needs to further regulate the normative provisions on dispatched workers, Therefore, a process is required. I know that there are several thousand dispatched workers in some enterprises. For example, in a company, all of them are now contract workers. Including China Mobile and Chinatelecom, they were also dispatched workers before 2008, and they are now working as contract workers. Since we allowed these enterprises to be non-standard in the past and standardized now, we are also doing the same for Nine Dragons Paper

the interests of labor and capital are unbalanced. At present, there are still many problems to be solved in China. There are still many enterprises in China, and our trade union is also correcting this phenomenon. Kongxianghong told this magazine that, however, we are not trying to kill the enterprise to correct the phenomenon. Instead, we hope that the enterprise has a high degree of society and can jointly solve the problem of labor relations through consultation with workers and coordination of interests. As for Nine Dragons Paper, it is the same. If we let it rectify, we will make it better, not kill it. Of course, I hope Ms. Zhang Yin and her management team can better manage the factory

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