Feng Zhu Textile Wholly Owned Fish Table Company Suspended Production Due To Industrial Disputes

Dong Yuan Chiang yuan: "wage increase" demand is expected to come true, but the scope will not be big.

In June 2nd, Feng Zhu

Feng Zhu textile said that the leadership of the company attaches great importance to it. A special task force has been set up to deal with related matters actively and safely.

The company will disclose information on the progress of the above events in a timely manner.

After the announcement, "Securities Daily" reporter contacted Chien Chien Chien Chien yuan Chiang yuan to inquire about the matter. Jiang Yuan said: "the main reason for this labor dispute is that the workers on the front line of the Yutai company ask for a raise, but the management of the subsidiary company has not promised their request."

Because he is traveling abroad, he is not very sure about the progress of this matter, but he said: "this matter will not drag on for too long. I believe that it will be solved in a few days."

Labor disputes have a long history.

Feng Zhu textile is mainly composed of knitted fabrics, cotton spinning, dyeing and finishing, coloured yarn production and environmental protection facilities operation. It has weaving factories, dyed cotton mills, bleaching and dyeing factories, sewage treatment plants and 2 cotton spinning subsidiaries.

Public information shows that Yutai company was acquired by Feng Zhu textile in 2005.

At that time, in order to solve the problem of quality and supply of raw cotton yarn, in October 25, 2005, Feng Bamboo textile purchased the effective assets of a cotton mill in Yutai County, Shandong Province, and set up a controlling shareholder, that is, the Yutai company.

"Before the takeover, the employees of Yutai company went on strike several times and asked for a raise."

Jiang Yuan said: "last year, the employees of Yutai company once made a wage increase, and the company had a wage increase last year, when the wages of workers could reach more than 1500 yuan."

It is understood that the employees of the Yutai company have submitted the request for wage increase to the management staff of Yutai company, but this request was not approved by the management. At the same time, the employees and managers of Yutai company also had friction due to the increase in wages, which eventually led to workers' labor disputes and factories shut down, and the head office was only later aware of the matter.

"I was aware of the labor disputes of Yutai company on Monday. The company attached great importance to it and organized a group of experts to talk to the employees of Yutai company and labor disputes this week about wages."

Jiang Yuan said.

"There is also a reason why managers disagree. The main reason is that the wage increase demanded by workers is too large.

The company is hard to accept. "

Jiang Yuan did not tell reporters the specific data, but from the conversation Jiang Yuan said no more than 2500 yuan.

During the talks, Jiang Yuantou showed that the company might meet the demand for workers to raise wages, but the rate of increase would not be as high as that of workers.

The geographical environment determines the wage level.

From the reporter's understanding, Feng Zhu textile workers' wages are not completely unified, and the wages of Feng Zhu textile parent company is higher than that of the Yutai company.

According to Jiang Yuan, deputy director general, "the main reasons for this gap are: first, the parent company mainly relies on the printing and dyeing industry, and the workers' technical level is higher than that of the production of cotton spinning Yutai company. Two, the parent company is located in Quanzhou, Fujian, where the consumption level is higher than that of Yutai County, which is located in Yutai County."

Public information shows that Yutai company is located in the west of Yutai County, Jining City, Shandong province. Because the company is in the county city construction plant, the surrounding villages are dominated by the village, which limits the consumption level of the surrounding companies.

Jiang Yuan, deputy director of the company, said that the working level of Yutai company was low before. Last year when the company got a wage increase, the salary of each person increased by one to two hundred yuan, and the salary could reach more than 1500 yuan per month.

"This wage level is already in the upper and middle reaches of the local level."

However, the low wages of textile workers have become the consensus of the industry.

Zhang Fengying, an inspector of Shaanxi Textile Industry Management Association, has publicly stated that the reason why cotton textile industry can not keep people is mainly related to the low wages of workers.

Last year, the Shandong Provincial Light Industry textile trade union committee, in accordance with the requirements of the China Textile and trade tobacco trade union's notice on the survey of wages and salaries of textile and garment enterprises, sampled from March to May last year, sampled the actual situation of workers' income in 2007, 2008 and 2009 years of some textile and garment enterprises, and found out that the income of the workers in the textile and garment industry is far lower than the average wage of the workers in Shandong.

The survey results show that in the 9 surveyed enterprises, the wages of their employees are lower than those of the whole province and the local area.

Rising costs

Textile enterprises difficult to mention performance

Although Yutai company, a subsidiary of Feng Zhu textile company, suspended production and operation because of workers' labor disputes, Feng Bamboo textile said it had no significant impact on the production and operation of the company.

"The net profit of the company last year was about ninety million yuan, while the net profit of the subsidiary company was only about 2000000, accounting for 3.07% of the total net profit of the company," said Jiang Yuan, deputy director of the company.

"Although the net profit of Yutai company is relatively small, the company still attaches great importance to this worker's labor dispute."

Mr Jiang said that the company would probably raise wages again, but the rate would not be too great.

Although the company claims that the labor dispute has little impact on its performance, the increasingly prominent cost pressure has also made obvious pressure on Phoenix Bamboo textile.

Public information shows that raw materials, labor force and RMB appreciation have become the three mountain peaks on textile enterprises, which makes textile enterprises unable to bear heavy burden, and this also affects the textile industry of phoenix bamboo.

According to Dong mi Jiang Yuan, in order to deal with the ups and downs of cotton prices, the company also participated in the operation of cotton futures.

In fact, the ups and downs of cotton prices have a certain impact on textile enterprises.

"High cost of cotton spinning and high cost pressure, cotton prices can be reduced too fast, but also affect the production and operation of textile enterprises."

Tung Chiu Chiang yuan told reporters: "because of the ups and downs of cotton prices, textile companies dare not increase their inventories, and when placing orders, they are also short-term orders. They dare not place long-term orders.

This also has a certain impact on enterprises. "