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Labor Supply And Demand Imbalance &Nbsp; South East Asia Outbreak Of Korean Clothing Factory Crisis

2010/12/17 9:19:00 53

Korea Youngone

Trade

The company has recently demanded a protest riot in Bangladesh factories. The situation has eased slightly and some factories have started work again, but the local business people still do not know when the outbreak will erupt.

Pay rise

The movement is extremely uneasy.

Another South Korean textile and garment factory in Hu Zhiming, Vietnam, not long ago cooperated with the local government to raise the minimum salary.

staff

The average salary is raised by about 20%. However, as the local consumer price index has risen by nearly 11% at the end of the year, employees have already raised the requirement of raising wages according to the price increase. Recently, the number of newly joined local enterprises has increased, and the demand for labor is expected to increase significantly.

Recently, South Korean enterprises stationed in Southeast Asia are facing the difficulties of local workers in raising manpower, demonstrating and protesting.

At present, there are more than 40 Korean enterprises in Southeast Asian countries, more than 30 in Burma, more than 120 in Philippines, and 30 in Kampuchea.

According to the Federation of Korean textile industry, more than 700 illegal strikes took place in Vietnam in 2008, and the Vietnamese government was usually in a passive position against the foreign labour disputes faced by the local factories.

South Korean tailors, fiber clothing and other industries began to set up factories in Southeast Asian countries since 1990s. Due to cheap labor, Burma and Bangladesh made Korean enterprises that originally set up factories in China migrate to Vietnam and Indonesia instead of factories. In recent years, they have turned to Burma and bangkara countries. But even in Asia, the lowest wage level in Bangladesh has also led to wage demonstrations and riots, so that factories that set up factories in Southeast Asia are facing the threat of losing the "last bastion" and have no idea where to go.

South Korea's Korea trade and Investment Promotion Agency (KOTRA) analyzed that the main reason for the recent wage increase in cheap labor countries is the imbalance between labor supply and demand.

The price increases in major cities such as Bangladesh, Vietnam and India have made it impossible for workers in cities and counties to go back to the nest because of their expectation of going to cities for jobs, resulting in a serious shortage of labour. With the addition of enterprises in China, Hongkong and Taiwan to Southeast Asia to add factories, lots of labour is being scraped out, and if the industry is rushing to catch up, delays in shipments will be greatly reduced if the demand is not met.