Pearl River Delta Enterprises facing the cost of rising tide and forcing enterprises to move northward

Zhang Yejun Foxconn announced that, since June 1, the Shenzhen plant and the group outside the Shenzhen plant operators, line-length, team leader pay adjustment to upgrade the overall pay level, the minimum rise of 30%.　　Just before Foxconn's announcement of a pay rise, Foshan Nanhai Honda Auto Parts Manufacturing Co., which was concerned about the shutdown, also announced a 24% pay rise.　　The two news, the domestic manufacturing industry is highly concerned, industry expectations, by the Foxconn and Honda events, the Pearl River Delta manufacturing industry will face a rise in salary expectations. What is the prospect of salary increases for PRD enterprises?　　In recent years, the strategic layout of labor-intensive enterprises, represented by Foxconn, suggests a new round of industrial relocation and expansion, according to industry insiders. Pay rise "herding" as the world's OEM aircraft carrier Foxconn, its staff's overall welfare benefits are higher than the Pearl River Delta General Manufacturing enterprises. However, a series of suicides this year have forced Mr Gou to go to Shenzhen Longhua for a systematic overhaul.　　As for the reasons for the frequent jumps from Foxconn's employees, many media and experts have blamed the problem on the distribution of wealth and low labour wages. Foxconn is a major supplier of brands such as Apple, Dell and Hewlett-Packard, and public criticism of the company has also shifted to those brands, with the media reporting "bloody apples" denouncing sweatshops and attacking the labor exploitation behind Apple's high profits.　　On June 1, at the Taiwan headquarters of Hon Hai Group (Foxconn's parent company), many people staged demonstrations to denounce the deaths of workers at Foxconn's mainland factories. On May 26, on a media-opening day hosted by Foxconn, Mr. Gou was nervous about the pressure of sweating, and two days later, Foxconn announced plans for an average pay rise of 20% per cent for mainland workers.　　The unexpected news from Foxconn on June 2 was the decision to raise the average employee by 30%. Since this year, a variety of food prices are obvious, the Pearl River delta labor cost of living increased, make ends meet, making employees ' rights and interests louder.　　And the recent "shutdown incident" troubled Foshan Nanhai Honda Auto Parts Manufacturing Co., Ltd. announced on May 31 for staff pay 24%; Earlier, Master Kang in Guangzhou Development Zone's factory has been the minimum wage from RMB 870 to 1100 yuan. Some experts said that the leading enterprises pay a "herding effect" will soon appear, the whole industry wages played a certain role in driving. Foxconn's 30% pay rise has also put a strong pressure on competitors, if the peers do not follow the promotion, it is difficult to recruit staff, also can not keep people.　　Industry experts predict that the Gathang of the manufacturing sector may start with the electronics or automotive industry. The "tide of pay" may also be supported by the government. According to reports, Shenzhen plans to promulgate the revised minimum wage in June, and began implementation on July 1. Reporters through the Shenzhen human Resources and Social Security Bureau to understand that Shenzhen to be in the near future press releases,Adjust the minimum wage.　　Specific programmes are temporarily closed.　　Shenzhen Municipal Human Resources and Social Security bureau secretary Wangmin said that the new standard adjustment will not be lower than the current SAR minimum wage of 10%, that is, not less than 1100 yuan. As early as this spring, the Guangdong Provincial Bureau of Human Resources and social security raised the minimum wage in the province.　　Guangzhou raised the minimum wage to 1100 yuan on May 1. Cost-forcing companies to move North May 25, when Foxconn's 11th jump occurred, Mr. Gou was receiving a trade delegation from Sichuan.　　Indeed, Foxconn, which has long been in the country, is now considering the most problems, and has managed to expand the plant north. Cheng, a special assistant to Shenzhen with Mr Gou, said in a response to a reporter's question on May 26: "Reducing costs is the normal behavior of the enterprise, do you know why Foxconn in Chongqing, Chengdu set up branch?"　　"The implication is that saving labor costs is the basic principle of Foxconn's business strategy." Correspondingly, in October 2009, Fuji Kang Chengdu Industrial Base project settled in Chengdu High-tech zone, the total investment amounted to 1 billion U.S. dollars.　　In May this year, Foxconn (Chongqing) 80 million global notebook computer production base officially put into operation, industrial base will be expected to use the local labor force of 100,000 people.　　According to the report of the TDC's "rising pressure on export prices in the mainland", 500 Hong Kong-funded companies were visited in January this year, and the survey showed that the average wage of the PRD in the past six months had risen by 17%, plus the corresponding social security, the total production cost increased 4%~6%. Guozhenhua, director of the Hong Kong Federation of Industries, said that in recent years many low-end and two high (energy-consuming, highly polluting and resource-intensive) enterprises moved away from the Pearl River Delta, in northern Guangdong, Jiangxi, Hunan and other lower production costs of the place set up factories.　　But some of the less powerful enterprises, may be unable to move factories, the emergence of small enterprises collapse tide. Coincidentally, in the "labor shortage" and other factors under the pressure of the Taiwan electronics in Dongguan from 2000 onwards, and constantly in the various cities in the mainland, looking for more suitable investment areas.　　This year, Taiwan Tatsu Electronics in Chenzhou, Hunan new Factory project has been signed, and moved in with the Taiwan Tatsu electronic and moving around supporting manufacturers.　　An earlier survey conducted by the Federation of Hong Kong Industries in the PRD revealed that 37.3% of the 80,000 Hong Kong Enterprises in the PRD are planning to move all or part of their production capacity away from the PRD, and more than 63% of them are planning to move out of Guangdong.　　Good timing of investment promotion in the middle of China as the coastal human cost continues to rise, has become Taiwan's electronic foundry enterprises are facing a major bottleneck, so including Hon Hai, Guang da, Britain and other major enterprises have been accelerated to move to Chongqing. With the increase in employment costs, the Pearl River delta Labor-intensive enterprises to move northward, or will be further intensified. This is considered a once-in-a-lifetime opportunity for inland cities.　　Since the beginning of the Pearl River Delta, "Migrant workers shortage", these from Hunan, Jiangxi, Henan and other investment units are particularly active, almost every week there are various scale of investment promotion will be held in Guangzhou, Shenzhen, Dongguan.As of press time, Sichuan Province in Shenzhen office of all personnel are preparing for the "West Fair", this is regarded as the Sichuan province to attract investment "play" brand exhibition, nowadays become an important platform to seize the North relocation enterprises. According to incomplete statistics, only Dongguan, there are more than 100 municipal investment units resident.　　In the first 5 months of this year, nearly 40 inland cities have been introduced to Dongguan, the total amount of capital is estimated to exceed hundreds of billions of dollars.　　After the tide of pay rises, the long-term economic model of the economy is being tested, and the traditional growth of the Pearl River Delta has come to a crossroads. China Business newspaper Weibo: Http://t.sina.com.cn/chinabusinessjournal