| Dongguan is a manufacturing city in southern China, in | | | | Dongguan, the average monthly wage is basically |
| the local footwear industry, the average monthly | | | | working hours and overtime decisions, and their |
| wage of 960 yuan. As one of Nike's largest contract | | | | overtime hours often exceed the legal limit. However, |
| factories, Yue Yuen Industrial is given is 1472 yuan | | | | Yue Yuen Industrial, the average wage is only about |
| monthly salary. | | | | two-thirds of hourly wages. Nike's vice president for |
| In a lot of companies are the problem of rising | | | | corporate responsibility Hannah - Jones (HannahJones) |
| costs of headaches for the industry, this gap would | | | | said: "If you have extra questions, you will have the |
| have been trouble. But Yue Yuen Industrial is | | | | quality and delivery problems." |
| booming, a fact that may be outside of the Pearl | | | | Yue Yuen Industrial Average pay the remaining |
| River Delta, Dongguan as well as a reference for | | | | one third, as a group from the production line to |
| manufacturers. | | | | achieve the productivity and quality goals. |
| The past 5 years, China's export prices have | | | | These lines are modeled on the Toyota pioneered |
| been rising. UBS economist Jonathan - Anderson | | | | the "lean" manufacturing principles. Nike North Asia |
| (JonathanAnderson) in a recent research report said: | | | | regional director of compliance services Sonya - |
| "(China trade) partner country data show that in U.S. | | | | Decken - Jones (SonyaDurkin-Jones) said: |
| dollar terms, by 2003, imports of footwear from | | | | "(employees) can not be a bad part walk away (to |
| China , toys, furniture and textile prices fell about 3% | | | | another team member) and then say goodbye to it . |
| per year, but after 2003, the annual increase to | | | | "Nike lean on each production line are labeled" NOS |
| 3-4%. " | | | | "name, this is the first letter of the Latin |
| Taking into account the cost of labor is one of | | | | novusordoseclorum short, meaning" Jesus Christ the |
| the problems, and Yue Yuen Industrial and other | | | | new order. " This phrase also appears in U.S. dollars |
| enterprises face increasingly higher costs of many, so | | | | on the back, may explain how it is rooted in the Nike |
| the price increases in recent years can be described | | | | system memory. |
| as very mild. As Taiwan's Pou Chen Group, a | | | | Earlier this month, Nike executives spend 3 |
| subsidiary listed in Hong Kong, Yue Yuen has been | | | | days with reporters visited the Yue Yuen factory in |
| able to absorb cost rises, which for people to | | | | Dongguan, saying the plant is an example of hope |
| understand why China's export growth has provided | | | | Nike's entire supply chain in China has reached such a |
| some clues. | | | | level. Nike's supply chain, including about 180 Chinese |
| The Chinese government last week's trade | | | | factories, a total of 210,000 employees. One-third of |
| and inflation data showed that Chinese exporters is | | | | all Nike shoes made in China. |
| how difficult the operating environment. 11, the | | | | Yue Yuen Industrial high wages the company |
| Chinese government announced in February of this | | | | to productivity and quality was rewarded; Another |
| year's consumer price index rose 8.7% from a year | | | | advantage is that the labor market supply and |
| earlier, a 12-year high - severe snowstorms in January | | | | demand in the most recent in a favorable |
| of this year due to commodity shortages | | | | environment for staff, the company's recruitment |
| exacerbated by inflation. That exporters make | | | | problems than those with lower wages competitors. |
| matters worse, since the mid-2005, the RMB | | | | "We have been subject to environmental challenges |
| exchange rate against the U.S. dollar has risen 15%, | | | | the industry - to provide overtime pay some of our |
| now about to break through 7 to 1 mark. | | | | competitors," Pou Chen Group, a manager |
| Inflationary pressures in the basic stake in | | | | JohnsonTong said, "but the staff hopes to make |
| China, because inflation is likely to make exporters | | | | money, not the (increase) in working hours." |
| more difficult to absorb the impact of domestic cost | | | | "In this environment, you want to reduce the |
| pressures. Although this year's harsh winter weather, | | | | staff turnover rate," Jones added. "Time to market |
| such as seasonal factors such as a serious distortion | | | | not only is our driving force. If you jump from one |
| of trade data, China in January to February's trade | | | | factory to another factory, how do you achieve |
| surplus fell 29% from a year earlier to 28 billion U.S. | | | | this? This is not the pursuit of labor cost, but rather |
| dollars, suggesting a possible future situation. | | | | stability and innovation." |
| Chairman of China equities at JP Morgan in a | | | | The other side of the Pearl River Delta, the |
| research report, Jing said: "We expect (China) in | | | | private ownership of the Hong Kong shirt maker |
| March export figures to rebound, but we still expect | | | | Esquel Group takes a similar attitude. The company's |
| this year's export growth will appear more moderate | | | | factory in Foshan employment with 26,000 |
| slowdown ... ... slowdown in China's export industry is | | | | employees, the company founder's daughter, |
| facing economic growth is one important risk. "She | | | | Chairman Marjorie Yang, whose clients include Gap, |
| referred to the reduced demand for OECD | | | | JCPenney and Nike. Last year, the company |
| economies. On the OECD's exports account for two | | | | produced 6,500 shirts. |
| thirds of China's total exports. | | | | And Yue Yuen Industrial, like Esquel Group |
| However, the Yue Yuen factory in Dongguan, | | | | must respond to a series of rising costs. The |
| China's export industry for the flexibility to provide a | | | | company also intends to increase the cost of |
| sufficient evidence. Last year, Guangdong footwear | | | | investment 50 million U.S. dollars to build a clean |
| exports increased 14.6% to 9.6 billion U.S. dollars, | | | | manufacturing facilities, including its own power plants |
| textile exports rose 18.4%, to 420 billion. | | | | and water treatment plants. It's water treatment |
| Yue Yuen Industrial, and other large exporters | | | | plant for sewage treatment from all the links to the |
| to benefit from its first large scale of operations. For | | | | dyeing industry. |
| instance, Yue Yuen Industrial is located in Dongguan, | | | | These investments make Esquel Group is more |
| Nike foundry business has 27,000 employees, annual | | | | solid foundation in the Pearl River Delta, where there |
| production 14 million pairs of shoes - and this is only a | | | | is a wealth of textile workers in the labor available to |
| total number of employees up to 10 million, larger | | | | the companies. "You have to pay for staff labor and |
| manufacturing group a small part of total output. | | | | wisdom," Marjorie Yang employees at the time said |
| Yue Yuen Industrial average wage higher than | | | | about her. "For us, stability is most important, so we |
| the industry more than 50%, but it is relatively | | | | can use our management skills to deal with external |
| expensive labor costs also cover the productivity | | | | problems. |
| incentive measures. Most shoe companies in | | | | |