Madam Zhang sidesteps tough questions
07/11/2011
Speaking at the World Footwear Congress in Rio de Janeiro on November 7, Madam Zhang was asked what social costs Chinese employers had to pay on top of workers’ wages. She said the basic calculation was 30% of a worker’s salary, so that if a worker earns 1,000 RMB per month, the employer would have to find an additional 300 RMB for social secutiry. She clarified this afterwards, saying she understood workers paid 5% or 6% of this social security costs themselves, but this was in response to a follow-up question asking if Chinese companies really paid this money.
Asked if the Chinese government provided subsidies to Chinese footwear manufacturers, she simply said: “No.”
Reaction in the room suggested that many delegates felt this fell short of offering a full reflection of the situation in the industry in China.
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