Business & Finance Careers & Employment

What Is the World Factory

At the 5th street Xinghan, Suzhou Industry park, the weather was very hot but the old industry park was peaceful. The history of Adidas's plant building was around 15 years. Go through the production workshop at floor 3, you can hear the rumble from machines, you can see the occupied woman workers.

It would be more peaceful after several months leaving some no job persons. Adidas company announced the other day, they would dismiss the workers in Suzhou Industry park from 31th October this year to 31th July next year gradually until the factory shut down. It's reported their plants would change to the lower expense countries such as Southeast Asia.

The only thing Mrs. Zhang can do is supplying housekeeping for other families, who is a native worker in Suzhou. She is one of the final batch of employees in Adidas China factory.

Being lack of other strong points, Mrs. Zhang is getting into a tendency of the international industrial transfer of textile and garment industry.She would lose her job in the wake of the tide flows to the lower cost countries.

Adidas Suzhou, 100% wholly owned subsidiary of Adidas Group, established in 1997,the only direct production factory in China, mainly produces Adidas and its other brand sportswear.The reporter estimated its workers most consisted of over 35 years old females in nearly 200 employees.

In the field of textile and garment industry, the increased high labor cost became a disadvantage of "made in China". Meanwhile, the Southeast Asia countries like Bangladesh attracted the textile and garment industry transfer by degrees because of its lower cost of labor. Nike Company has already shut down its sole production work in China named Taicang factory for three years.

Adidas staff includes outsourced workers and regular employees.
Outsource workers' wages were 700RMB when Mrs. Zhang get into the factory in 2003, and now, OW's salaries increased 900RMB. As to regular employees, their base wages up to 2000RMB now from 1000RMB in 2003. Nowadays, the vast majority of persons in the factory are regular employees with minority of outsource workers.

Chinese vice Minister of Commerce ZhongShan said in the past, the average wage of manufacturing industry in Viet Nam is 1000yuan per month now, 600yuan in India, and 2000yuan to 3000yuan in the eastern coast of China. The prime labor cost in China highly exceeds other countries surrounding China apparently.

Miss. Li, who is working for an England famous clothing enterprise, told the reporter that her company, for instance, 70% of production set in China before 2012, but now there were 30% left in China.The advantages of the Bangladesh are the garment production equipment generally more advanced, large-scale works, workers' salaries are only about one-tenth of China's garment processing enterprises.

Bangladesh Knitwear Production and Export of the Chairman of the Federation (BKMEA) Osman divulged in October, 2011, Bangladesh overstepped Indian and became the second knitwear exporting country only next to China in the world.

Suzhou plant of Adidas, is still busy, but it would say good bye to China in the near future.

To the compensate plan after dismissing the workers, Aunt. Zhang said there would be a compensation called n plus 1, n means the years you worked for the factory, they can receive n plus 1 months' wages, but it just aimed at the regular employees, not included outsource workers.

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