Why are textile companies high in arrears?

A few days ago, the Jiangsu Provincial High Court reported that in 2014, the number of cases in which Jiangsu refused to pay labor remuneration rose sharply. The province’s courts refused to pay 68 cases of first-money crimes and received 68 cases, and 55 of the 66 cases were valid. The defendant was exempted from criminal punishment, and the remaining 65 persons were sentenced to three years imprisonment, criminal detention or a single fine. The units involved are mainly labor-intensive industries. It is worth noting that 25 of them are garment and textile industries, accounting for 38.5% of the total number of such cases.

Arrears of more than 10,000 yuan may be sent to the relevant person in charge of the Jiangsu Provincial Higher People's Court. He said that he had entered a prison sentence for maliciously owed salaries in 2011. Regardless of whether the administrative department or the judiciary is involved, he has a gradually familiar process. In order to speed up the refusal to pay labor compensation, the Higher People's Court of Jiangsu Province has issued a standard for malicious wage arrears: refusing to pay a worker for more than 3 months of labor compensation and the amount of more than 10,000 yuan; or refusing to pay Those who pay more than 10 workers and whose total amount is more than 60,000 yuan will be investigated for criminal responsibility. With regard to sentencing, the court has criminals who have serious crimes and have a bad attitude toward penitence and conviction, and are sentenced to fixed-term imprisonment or criminal detention in accordance with the law. Probation is not applicable. In addition to ordering the offender to pay wages according to law, the Jiangsu Provincial Court in 2014 imposed a total of 1.545 million yuan on such crimes.

Excessive competition in the low-end areas is induced by He textile and clothing industry is the hardest hit by wages? Local industry insiders believe that the textile and garment industry, as a pillar industry in Jiangsu, has been ranked in the forefront of Jiangsu in terms of the scale of output value and the absolute number of employees. This may be due in part to the higher proportion of wages due to textile companies, but the main reason is that it is partly due to Businesses cannot adapt to changes in the living environment. As the most market-oriented industry, textiles have entered the new normal of low-speed growth before the national economy. He believes that the changes in the market environment have made textile companies more exposed to the disadvantages of excessive competition in the low-end areas.

A person in charge of a textile company in Shandong responded to reporters that arrears of wages are also related to the disadvantaged position of the manufacturers in the trade. The textile industry is highly competitive. Traders and buyers in a strong position often require long accounting periods. One has to agree, so that market risk and financial pressure will be passed on to the head of the production company. Once the signs of trouble appear, the company will face a difficult situation. At the same time, some entrepreneurs lack legal awareness, lack understanding of refusal to pay labor compensation crimes, do not realize this risk in their operations, and do not respond adequately to corporate capital chain risk, which is also the reason for arrears of wages.

Perfecting the market withdrawal mechanism may improve industry experts believe that, behind the failure of employers to pay wages, it is reflected in the reality that China’s market exit mechanism is imperfect, and it should speed up the exit mechanism for the survival of the fittest, improve the bankruptcy system of the company, and improve the bankruptcy system of the enterprise, so that it will be on the verge of bankruptcy. Can properly handle issues such as debt and labor disputes.

Due to the slowdown in China's economic growth and the impact of the industry's adjustment period, some textile companies have frequently experienced “states” in the capital chain, and some employers have experienced wage arrears or even “run”. But can not just hit the board in the private enterprise boss's body, should reflect on why the company's business problems when the first choice is not to go bankruptcy procedures but illegal wages or even take money running?

In this regard, experts believe that at present, there are still many misunderstandings about the bankruptcy of enterprises, and the material and financial resources for bankruptcy applications are huge, and the concern that bankruptcy may not be beneficial to enterprises is the main reason for the bankruptcy filing.

In fact, the market itself is a place where the survival of the fittest can be achieved. Many companies have already existed in name only, but they still have to live in. In the long run, they will accumulate more systematic risks. If they can really implement and improve the exit mechanism, this will actually be beneficial to the development of the industry.