Why are more and more small factories closing down one after another?

Nowadays, more and more small factories are closing. There is still such a situation in Shenzhen, the company's recruitment advertisement is still posted, but the factory has closed down, so many job seekers have opened up the recruitment**, but the reply is that the company has closed down and is not recruiting. So why are more and more factories closing?

Many of the employees inside the closed factories explained the reasons for the closure.

First, the factory capital turnover is difficult.

Today's market is highly competitive. Under the general environment, many small factories with relatively low production capacity have gradually been eliminated by the market. In addition, there are restrictions on factors such as taxes and environmental protection.

Many small factories with low efficiency were shut down. Coupled with the continuous increase in labor costs, land costs and raw material costs, many small factories have difficulty in working capital and have fallen into an unsustainable state.

Second, the quality of products in many small factories is uneven.

With the advent of the era of mechanization, the quality of products produced by many small factories and small workshops is worrying. For a long time, many customers are very dissatisfied with the products produced by these small factories, and instead choose to cooperate with factories with larger scale, stronger strength and harder technology. For a long time, these small workshops had no orders, so they had to declare bankruptcy and find another way out.

Third, there is a problem with the management style of the management of the small factory.

In many small factories, the management of the factory has the phenomenon of defrauding employees. Employees are often recruited under the guise of high wages, and the recruited employees often can't survive the probationary period and resign on their own initiative. In this way, the company loses its credibility.

In addition, the management of many small factories always does not know how to pretend to understand and point fingers. Deduct employees' wages and frequently make employees work overtime and stay up late. After a long time, not only the employees were cold, but the company's reputation went bankrupt.

What do you think about this phenomenon? If you've worked in factories, what do you think of these small factories?

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In recent years, many small factories have faced a wave of closures, and more and more small factories have closed, which has also caused many employees to lose their jobs, and some large factories have also been affected, and factories are also facing the risk of closure.

What is the reason for this?

Let's see what the employees have to say:

1. Why are so many factories closed, the products are cheaper than 10 years ago, employee salaries, taxes and fees have risen n times, and factories have only closed down.

2, the super ** war factory has no profit and is almost out of business, and the workers don't work, OK? I'm afraid that it won't be easy to find a job in the future.

3. The closure of the factory is mainly summarized in the following points: 1. In order to survive, the company will not be able to survive and go bankrupt regardless of product quality, resulting in no profit. 2. Small and medium-sized enterprises fail because the funds cannot keep up.

3. Due to social development, today's online shopping dominates the market, resulting in many traditional enterprises unable to survive and go bankrupt. 4. The enterprise cannot survive and close down due to the decline in labor wages and products. 5. The helmsman of some enterprises cannot keep up with the trend of the times and the management is backward and the enterprise goes bankrupt.

The above is my summary of the closure of a large number of enterprises due to the current social phenomenon based on the enterprises I have been doing for many years.

4. Mainly, the high price of labor is high, from 350 yuan to 680 yuan in 90 years to 3500 yuan to 6800 yuan in today's wages. From the past when everyone brought food, to now there are hundreds of millions of yuan! Social security, work-related injury, medical care, seniority, etc.!

The cost of living is high. Today's environment is very difficult to survive from small factories to large institutions.

5. Employees are not human in the eyes of others! Without employees, he's not a boss! It is also important: now employees do not have more treatment environment than before, others must choose a good environment.

6. As long as it is the result of fighting between enterprises. **Competition, poor quality.

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Problems everywhere, everywhere.

Too much debt will really ruin the family, the wife will be separated, and the family will be ruined.

The company went out of business. Individual work-related injuries are also compensated. There are two types of situations.

Paying social security and not paying social security. If you have paid social security. The company went bankrupt and the Labor Bureau took over.

If you don't pay social security. The company will be liquidated after it goes out of business. After the auction, the injured employee will be dealt with first.

So no matter what, the work-related injury will be compensated.

Legal analysisWhen the company goes bankrupt and declares bankruptcy, the audit department will intervene in the investigation as soon as possible, first check the whereabouts of the accounts, and find out the detailed bills of income and expenditure. **The political and legal departments of the organs will coordinate with the labor and civil affairs departments to deal with compensation matters. For enterprise bankruptcy work-related injuries have not yet been assessed

The following is the procedure for determining work-related injuries: to apply to the Human Resources and Social Security Bureau (formerly the Labor Bureau) for work-related injury identification, the company needs to report within one month of the accident, if the company does not apply, the injured employee or his close relatives shall apply for recognition within one year. Documents to be submitted:

Application form for work-related injury determination (**generally have** according to the Labor Bureau), proof of labor relationship with the employer, medical diagnosis certificate, etc.; If there is a disability that affects the ability to work after the injury is relatively stable, the applicant shall apply for labor ability appraisal and submit an application to the labor ability appraisal committee of the city divided into districts (generally established in the human resources and social security bureau at the same level); Depending on the level of disability, the compensation received is not the same. The main compensation is: medical expenses, one-time disability allowance, one-time employment allowance, one-time medical allowance, salary during the period of leave of absence, food allowance, nursing expenses, etc.

If you do not have an employment contract or other evidence to prove the existence of an employment relationship, and you are unable to apply for a work-related injury determination, you can first apply for labor arbitration to confirm the existence of an employment relationship with the employer. After the existence of an employment relationship is confirmed by labor arbitration, an application for work-related injury determination is made.

Legal basisArticle 43 of the Regulations on Work-related Injury Insurance Where an employer is divided, merged or transferred, the successor unit shall bear the work-related injury insurance liability of the original employer; If the original employer has already participated in the work-related injury insurance, the successor unit shall go to the local agency to change the registration of the work-related injury insurance. If the employer implements contracted operation, the liability for work-related injury insurance shall be borne by the unit where the employee's labor relationship is located. If an employee is injured in a work-related accident while on secondment, the original employer shall bear the work-related injury insurance liability, but the original employer and the secondment unit may agree on compensation methods.

If an enterprise goes bankrupt, it shall pay the work-related injury insurance benefits that should be paid by the unit at the time of bankruptcy liquidation.

Hello, there are many reasons for the closure of factories, and here are a few of the main ones:1High cost:

In some developed countries, many companies cannot afford high labor costs and heavy tax burdens, and rising costs have forced them to close down. 2.The imbalance between supply and demand is delayed:

With the increasingly fierce market competition, many enterprises survive the fittest, resulting in oversupply among enterprises in the same industry and insufficient market demand, which makes many enterprises go bankrupt. 3.Not very technical:

Some enterprises stay in the original technical level and do not upgrade in time, can not meet the diversified needs of the market, the product will lose its competitiveness, and eventually lead to bankruptcy. 4.Mismanagement:

Some businesses are poorly managed and face several problems such as poor internal communication, chaotic financial management, lack of flexibility, etc., which can lead to business failure. 5.Natural Disasters or Emergencies:

Natural disasters such as fires, emergencies such as epidemics, etc., are also one of the reasons why many enterprises have closed down. These causes are not isolated and often work together to cause the business to go out of business.

Legal Analysis: For the needs of safe production and the needs of economic development.

Legal basis: Work Safety Law of the People's Republic of China

Article 94 If the principal responsible person of a production and business operation entity fails to perform the duties of production safety management provided for in this Law, it shall be ordered to make corrections within a time limit and shall be fined not less than 20,000 yuan but not more than 50,000 yuan; If the correction is not made within the time limit, a fine of not less than 50,000 yuan but not more than 100,000 yuan shall be imposed, and the production and business operation entity shall be ordered to suspend production and business for rectification. If the main person in charge of the production and business operation entity has the illegal acts in the preceding paragraph, resulting in a production safety accident, he shall be dismissed; where a crime is constituted, criminal responsibility is pursued in accordance with the relevant provisions of the Criminal Law. If the principal responsible person of a production and business operation entity receives a criminal punishment or dismissal in accordance with the provisions of the preceding paragraph, he shall not serve as the principal responsible person of any production and business operation entity for five years from the date of completion of the criminal punishment or the date of the sanction; Those who are responsible for major or especially major production safety accidents shall not serve as the main person in charge of the production and business operation unit in the industry for life.

Article 95 Where the principal responsible person of a production and business operation entity fails to perform the duties of production safety management as provided for in this Law, resulting in a production safety accident, the emergency management department shall impose a fine in accordance with the following provisions:

1) In the event of an ordinary accident, a fine of 40% of the annual income of the previous year shall be imposed;

2) In the event of a major accident, a fine of 60% of the annual income of the previous year shall be imposed;

3) In the event of a major accident, a fine of 80% of the annual income of the previous year shall be imposed;

4) In the event of a particularly serious accident, a fine of 100 percent of the previous year's annual income shall be imposed.

Article 96 Where other responsible persons and production safety management personnel of production and business operation entities fail to perform the safety production management duties provided for in this Law, they shall be ordered to make corrections within a time limit and shall be fined not less than 10,000 yuan but not more than 30,000 yuan; If a production safety accident occurs, suspend or revoke their qualifications related to production safety, and impose a fine of not less than 20% but not more than 50% of the annual income of the previous year; where a crime is constituted, criminal responsibility is pursued in accordance with the relevant provisions of the Criminal Law.

If the factory closes down, employees who have been working for more than 10 years will generally not be compensated, but they can receive corresponding financial compensation. If the employee has worked in the company for more than 10 and a half years, he or she can receive 11 months' salary. If it is less than 10 and a half years, it can be compensated with 10 and a half months' salary.

Legal basis: Under any of the following circumstances, the employer shall pay economic compensation to the employee under any of the following circumstances: (1) the employee terminates the labor contract in accordance with Article 38 of this Law; (2) The employer proposes to terminate the labor contract to the employee in accordance with the provisions of Article 36 of this Law and terminates the labor contract through consultation with the employee; (3) The employer terminates the labor contract in accordance with the provisions of Article 40 of this Law; (4) The employer terminates the labor contract in accordance with the provisions of the first paragraph of Article 41 of this Law; (6) Terminating the labor contract in accordance with the provisions of Paragraphs 4 and 5 of Article 44 of this Law; (7) Other circumstances provided for by laws and administrative regulations.

Article 47 Economic compensation shall be paid to the laborer according to the standard of one month's salary for each full year of the worker's service in the unit. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a month's salary.