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In a recent twist, a “most thunderous people’s vacation holiday in history†was announced by a subsidiary of Youngor Group, known as Ningbo Youngor Textile Printing and Dyeing Co., Ltd. (commonly referred to as “Japan Textileâ€), which sparked significant public reaction. The notice, which involved salary deductions before and after the Spring Festival, stirred discussions around labor issues within the textile and garment industry.
As the Spring Festival approaches, many workers are planning their return home, leading to concerns about absenteeism. Industry experts suggest that such measures are a response to the growing challenge of labor shortages. China's traditional manufacturing sector is experiencing a shift, with the demographic dividend gradually fading. This has forced companies to rethink their strategies to remain competitive.
The textile and garment industry is currently facing a severe labor shortage. According to insiders, even if 100 workers show up today, there's no guarantee they'll all be present tomorrow. Companies are struggling to retain skilled workers, especially as younger generations prefer less demanding jobs in the service sector.
Xu Lei, chairman of Rifang Textile, clarified that the controversial notice was only applicable to management and not to frontline workers. After realizing it violated labor laws, the company quickly retracted the statement and issued an apology. Despite wage increases of 10% to 20%, recruitment remains a challenge for Japanese-Chinese Textile. Employees earn an average of around 25,000 yuan annually, but the labor market still feels tight.
To address this issue, some companies are shifting production to smaller cities and towns where labor is more abundant. For example, Shanghai Longshang Textiles opened a new factory in Bozhou, Anhui, offering competitive wages. However, even with improved conditions, hiring remains difficult. Recruitment efforts often involve "digging" workers from nearby areas, who are attracted by the convenience of working close to home.
JinBa Company has also taken steps to improve worker satisfaction by offering better pay and transportation. With 80% to 90% of workers returning after the Spring Festival, the company is seeing positive results. However, raising wages alone isn't enough to solve the long-term labor crisis.
Experts warn that without fundamental changes, the textile industry may face even greater challenges. As costs rise and profit margins shrink, companies must invest in innovation and brand development. By building their own domestic brands and reducing reliance on foreign trade, firms can better navigate the future of labor shortages.