How is China’s garment industry dealing with rising labor costs?-20150131

How is China’s garment industry dealing with rising labor costs?-20150131

China is no longer one of the cheapest places in the world to produce garments what's more the workers are getting younger and younger how our factories coping with these challenges let's take a look this Imam sounds about every three minutes we might a worker from the exact shaped production line it's about the time you finished one relay when Lawson is a mastermind behind work flow The Pajama company owner began with just one sewing machine at home two decades ago he has since established the Korean styled home where Brad employs more than 500 workers book shares one secret Pahokee b5 mismatches oh yeah yo eat some nice high slit ways mm Ichi yang Yoda at the moment we have two types of production one is the traditional approach in the chow chow Shantou region where every worker completes one piece of from beginning to end the advantage is that the workers are very used to this world the other approach is production lines on the sixth floor each worker is like in a relay race these workers are relatively young either this approach achieves higher efficiency something I thought had a young gonna be done in King a woman is unwilling to rush his skilled workers on the fifth floor into doing simpler jobs on the sixth he intends to spend two years making that move and orders a young adult swings like that you go into your hearts unquote I believe many industries in China face the problem of employment shortage for our clothing industry we don't want to lose this group of skilled workers only when the portion of young workers born in the 1990s increases will we complete the transition your production line however people born in the 1990s don't just work for living twenty-five-year-old finish orphans spent her days on the sixth floor she does the job from 8:00 a.m. to 9:30 p.m. every day and takes off two days a month she earns the regional monthly average of about 3,000 yuan or 500 US dollars and sends 2,000 yuan to her parents Ling's dream is to become a fashion designer yet the biggest problem she faces is dating nonsense a irony you can have so many thought that creates our number you're crazy well it's Wednesday evening at another pajama Factory in China and Counting it's payday so most workers enjoy an extra evening all manageable handful has been with the factory for more than 20 years he says it's customary for factories here to provide workers with free meals and dorms our cost of labor has increased by at least 40 to 50 percent in the last five years in fact the numbers show that China is no longer one of the cheapest places to produce garments the minimum monthly wage here far exceeds that of countries like Bangladesh India and Cambodia places that attract him more and more factories back at the turn Chow house bra factory the owner and his wife gentle hua are walking around the workshop Chanchala herself had worked on the production line when she was young she says that each year after the lengthy Chinese New Year holiday factories like theirs experienced a worker crunch yummy bang cuts yeah in Shonto workers will stay at a factory for one year if everything is okay after the Chinese New Year those who want to change a job will leave so that's when every company is competing to hire workers most fiercely as oh yes good yeah yeah there you go you got Seng Tran says her company choice to hire workers by offering attractive pay and benefits will no sin meanwhile asks his human resources department to survey his workers at the end of each year to get a projected idea of how many workers will return after the Chinese New Year so professor job from the video we just watched so the Jama factory owner when Louis son said he's trying to push his more skilled workers into doing simpler jobs this is what we called a Fortis process meaning breaking down the production process into multiple steps and very highly standardized steps so what industrialized societies have actually gone through this process and what are the benefits and problems of making such a move you know Tracy I think what this pajamas Factory practices is essentially the idea that Frederick Taylor proposed in his book it's called the principles of scientific management back in the nineteen early nineteenth centuries there are several benefits to so-called tailored best practice one is it does increase the efficiency and it's not just the efficiency that's gained from day to day you know productivity but it's also the efficiency that's gained from not having he percent dependency you know if you dismantle a really complicated task into you know smaller steps and simple steps then it alleviates the concern of on-the-job training so you don't really have to train your new employee before you can put him or her you know on the product line and another benefit is that once the job is broken down into tiny steps and it's highly standardized then you can directly observe the performance of every workers right so which makes management and also performance evaluation much easier and straightforward so these are the benefits in terms of the downside I think you know the so-called tailor is best practice you know does encounter a lot of criticism and push backs perhaps the biggest criticism criticism is the fact that you know with this approach it doesn't really motivate workers right so tailors practice is actually at odds with a lot of current other practices they includes for example MBO management by of Jack or continuous improvement initiatives so these approaches actually focus more on individual accountability and responsibilities and they seek to push your decision-making through all different levels of the organization so the idea here is you should give your worker as much autonomy as possible and allow them the flexibility to choose the best practice for situations on the head so another issue with the so called Taylor's best practice is potentially a high set of cost you know given that Taylor's best practice involves in this mentally a complicated work process into you know multiple steps and become highly standardized well the design a high level you know how to break down the flow of the work and how do you design the process is very important well professor just speaking of human resource management how do these company how should they effectively motivate and retain their young workers right we see I think this is a great question you know I think the problem with scientific management that's what these company and companies are doing the problem is that it tends to focus too much on the mechanics but you know largely ignore the value of people side for work whereas motivations and your workplace satisfactions are very important components of a successful and productive organizations so I think to motivate young workers as we've seen from video a lot of them are actually born after 1990s you need to engage them not only physically but also mentally I try to incorporate their knowledge their background their experience into you know the best practice and I think a lot of the young workers in China nowadays they're motivated not just by money but they are also motivated even more by how interesting this job is and whether now they're able to find a sense of fulfillment or a sense of accomplishment you know in this job I see well China is slowly yielding its manufacturing based economy towards a more original innovative and creative path thank you so much for your insight professor Jeff always nice to have you here well I think you Tracy for having me well folks on that note we end this edition of you money thanks for watching and see you

26 Replies to “How is China’s garment industry dealing with rising labor costs?-20150131”

  1. Bangladesh is cheap but India have better designs. Bangladesh is only good at Cut and Sew. India is good at designing and new styling. Since long time china was taking all the cut and sew work and now they are shifting this labour intensive work to Bangladesh.

    Come to India for designing

  2. Bring in piece – work rates and make them lucrative enough to make your workers stay on after the year. By introducing piece – work, they can earn more money the harder they work, therefore, increasing productivity.

  3. oh my god I feel so sad for that 25 yr old girl who works more than 12 hrs a day and has only 2 days off in a month this is slavery and sadly I went through my wardrobe and realised that all my clthes were basically made in China or Bangladesh I live in Brazil and shop at stores like Renner C&A and Marisa. Thankfully now the Chinese government has been more considerate towards workers right but in the other hand factories will migrate to poorer countries like Bangladesh and india where the labor cost is cheaper

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  5. China does Copy of other country brand , and Gives Same Brad Tag foreign nation Companies. So Cheap and Black market is going in CHINA… so , never purchase the Chinese Products and Clothes. They are destroying your Country's Economy and Markets.. BoyCott them Soon.

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