China's steel industry layoffs and pay cuts

On October 23, the reporter was informed that the Wuhan Iron and Steel Group, one of the top three steel makers in the country, is brewing the company’s internal salary cuts. The average worker will be reduced by 20%, while the salary reductions for officers above the departmental level and departmental level will reach 50. %. According to sources, the measure is an interim measure. In addition, industry insiders reported that Baosteel, the first giant, has recently implemented a plan to reduce wages.
“The steel companies are now very difficult and have lost a lot of money.” Ma Zhongpu, director of the China Business Network Huarui Market Research Center, uses the “unprecedented” word to describe the tragic situation of the steel price collapse. “The reduction in salary and layoffs is really a last resort for these companies.”
More than steel companies that cut pay and cut wages are affected by the cooling of European and American economies, corporate exports, high oil prices, monetary tightening, and a variety of costs. This wave of layoffs has already spread to domestic real estate, aviation, petrochemical, electric power, and IT. , securities, finance, printing and other industries. On the afternoon of October 23, Chen Yongjie, director of the Research Office of the All-China Federation of Industry and Commerce, said in an interview with reporters that “this impact is comprehensive and national, and there is no way for companies to do so”.
The wave of layoffs and salary cuts spurred the nationwide wave of job cuts and layoffs that will sweep the industry. Ma Zhongpu explained: “The steel price is not a general decline. Affected by the entire economic environment, the possibility of the steel industry continuing to go down is still very high.”
The situation is more serious than the steel industry. Vanke, the Central Plains, layoffs and layoffs; Eastern Airlines, China Southern Airlines layoffs and pay cuts; PetroChina has slashed layoffs; Guodian Group leaders take the lead in reducing pay by 30%; Waveguide Xia Xin was forced to cut labor costs...
“The reduction in salary and layoffs is certainly true, and our company also has.” Yang Shaofeng, general manager of Beijing Lianda Four-Party Real Estate Brokers, told reporters very frankly, “This year's industry profits have fallen sharply, and it is normal to adjust the cost of human resources. People's income will inevitably be greatly affected."
Xie Chichen just came out from Lixin Dyeing and Finishing Machinery (Shenzhen) Co., Ltd. The engineer of the original quality management department told reporters that there are no less than 30 employees who “walk” like him every month. "This has been the case for months. It has been three or four months." When it comes to the dictatorship, Mr. Xie appears to be calm. "The economic environment is not good. It has been a loss for the past three months. The job cuts are widespread and those who are still in position." The salary of people is also greatly reduced. When you have worked overtime, the guards could get 1,700 yuan in the past. Now it is also 1,000 yuan."
Lixin is the 80th enterprise in the Shenzhen Top 100. After Xie Chilan left, the 3,000-person group company also reported that it had implemented large-scale layoffs at the end of the month and that the senior management had already prepared 15 million yuan for dismissal and repayment as an employee.
In the Pearl River Delta, "downsizing and cutting pay" has taken a terrible wave. Many of the retrenched personnel are no longer confident in the area. Xie Chih-hsiang told reporters that he went to the Buji Town (Shenzhen) Social Security Center to handle the surrender procedures: “I didn’t do it on the first day after the second day.” The days of the team are still more than 200, and they are all in a row. The staff have to let the later people go back."
Yang Gonghui, manager of Zhuhai Kaihenghua Electromechanical Co., Ltd., told the reporter: “Now the speed at which corporates fail is obviously faster and faster. Everyone’s sense of crisis has increased a lot. Companies are waiting to see, and they are even less willing to recruit people.”
Cause unemployment problems Facing the reduction of salary and layoffs of large and small enterprises, on October 22, An Fengming, deputy director of the Department of Enterprise and Development Research of the SASAC Research Center, told reporters: “The financial crisis and the financial tsunami are always mentioned. In fact, the tsunami is fundamental. It has not yet arrived. It is still an early earthquake phase."
“Under the influence of the big environment, this situation will continue, and the specific time is difficult to judge.” Chen Yongjie and Professor Xiao Guoliang of the School of Economics of Peking University unanimously stated that this round of pay cuts will be even stronger.
On October 20, the data released by the National Bureau of Statistics showed that China’s GDP fell by 2.3 percentage points over the same period of last year and the growth rate fell to single digits. At this point, GDP fell for five consecutive quarters. Xiao Guoliang, who has long been concerned with macroeconomic trends, believes that if the GDP growth rate slows down, if it fails to promulgate an active and effective fiscal policy, companies that cannot survive will cause a lot of unemployment.
"Most of the people who have been cut off are temporary workers or migrant workers. A large number of people returning to rural areas will put a lot of pressure on the society. Pressure on urban and rural integration and new rural construction will be particularly great," said Chen Yongjie. Wen Yueran, director of the Department of Human Resources Management at Renmin University of China’s School of Labor and Human Resources, also stated: “This makes it even more difficult for graduates to work this year and next year.”
"On the one hand, the state must do a good job of social security. On the other hand, we must implement a proactive fiscal policy that is strong enough." Professor Xiao Guoliang specifically mentioned the construction of infrastructure such as roads and railways. Wu Huaishan, director of the Financing Department of the SME Research Center of the Chinese Academy of Sciences, and Huang Shunjun, an expert in the Policy Research Office of the China Small and Medium Enterprise Association, said: "We must do more work to solve the problem of financing for SMEs."
“Neither be pessimistic. This is the law of economic development. In the global economic crisis, China is still capable of doing its own thing.” An Fengming believes that the country’s current judgment on the basic economic situation is good, as long as the fiscal and taxation policies are strong enough to support enterprises. no problem.

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