Talking with Top Suppliers (2)

Fact 2: Enforcement of New Labor Law increases labor costs, firms are busy with recruitment

Regarding the New Labor Law, most of the fastener companies say that they have already strictly followed the new law and its enforcement is not as difficult as they expected. The increased labor cost is inevitable and many companies say they are willing to accept it. Nowadays, China fastener industry has entered into a strategic period to turn a big fastener country to a strong fastener country. We are now in a key stage of economic globalization. Company competition is actually a competition of talents. Fastener companies are now busy with recruitment.

For Shanghai Jinfu Titanium Industry Factory that always implements standardized management, the enforcement of new labor law this year does not affect them. Ms. Ji Jianfei of Jinfu says, staff is their foundation stone. Only if the company offers comfortable environment to staff can it lights the enthusiasm inside staff, so that it will create much more value for the company. Jinfu not only provides basic rewards and welfares for staff, but also offers free accommodation to those who are very far away from homes. With these effective welfares, every staff has no worries any more and gets down working with great enthusiasm, making great contributions to the company's development.

Along with company's development and expansion, Jinfu also faces challenge in terms of talent shortage. The company welcomes more and more talents to join such a highly developed and energetic family. They are now undertaking the nationwide recruitment, placing advertisements in various recruitment websites.

While some fastener exporters are puzzled by the deprecation of USD, another type of trade mode is full of vitality. Evan Fastening Systems Shanghai Co., Ltd. is one of the examples. "As we are involved in imports and sell the foreign products to the domestic market, the deprecation of USD does not affect us at all." Ms. Zhu, Marketing Department of Evan says, “The appreciation of RMB, in some degree, is a piece of good news for import companies like us."

In addition to many lines in stock, Evan is also the agent of famous products like Richco, RAF, NBK and Heli-Coil . It is learned that these fasteners have passed international environment standard. "We are happy to see that customers find us reliable."

Ms. Zhu says, "However, we also encounter some problems. The sales result is up, but we do not have enough salespersons, especially the qualified and experienced ones."

Mr. Yan of Haiyan Heli Fastener Co., Ltd. says the company strictly follows the new law, and adds that employees enjoy the pays and welfares that they should have.

Ms. Xia of Wenzhou Sanling Metals Products Co., Ltd. says, the company signed contracts with employees in early January. The working hours has been adjusted according to the new labor law. The results are longer lead time and higher labor costs. Sanlin is going to establish a new plant in Jiashan. It is expected that it will employ more technicians and salespersons when the new plant is put into operation.

Source: Fastener Quarterly Magazine
Translated by Alice
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