Baocheng Group has 350,000 employees around the world. Currently, the measures planned are limited to Taiwanese employees and Taiwanese officials around the world. As for employees in production bases such as Vietnam , Indonesia , and mainland China, they are not included in the implementation targets.
Nike, Adidas and other orders have been greatly reduced
Baocheng wants to take unpaid leave, more than 3,000 people are affected
Mainland employees are not among them
Fengtai Yuqi will not follow up for the time being
It is worth noting that the industry has recently reported that Baocheng's main brands Customers, orders for the second quarter have been reduced by 50%; what is even more frightening is that for the third quarter, there are no estimated orders from international manufacturers.
The industry said that orders from international brand customers usually get estimated orders in the previous quarter. This year is indeed unprecedented.
The industry has admitted that the COVID-19 epidemic continues to spread. Major brands such as Nike and Adidas have successively announced the closure of stores in North America and Europe. In addition, NBA has also stopped remaining games and postponed the Olympic Games. These international brands have Being stuck on the sidelines will also affect the entire foundry supply chain.
Baocheng wants to take unpaid leave, more than 3,000 people will be affected.
Mainland employees are not among them.
Baocheng Group, the global leader in shoemaking, has comprehensively reduced expenditures in response to the impact of the new coronavirus pneumonia epidemic. On April 20, it was reported that senior management has considered starting from June. At the end of December, each person, including Taiwanese personnel and overseas Taiwan officials, must take six days of unpaid leave per month. It is estimated that more than 3,000 people will be affected.
On the other hand, in addition to implementing unpaid leave, senior executives above the vice president level, including group CEO Cai Peijun, will all have their salaries reduced by 10%; if once finalized, this will also be the first time without pay in the 51 years since Baocheng Group was founded. Salary leave and salary reduction will undoubtedly send a shock bomb to the industry, and it also shows that the current industrial environment is indeed dangerous.
However, the above-mentioned plan is still in the discussion stage, and will have to go through two stages, including the union’s negotiation and consent, and the employees’ signing of consent forms. It is understood that Baocheng notified its middle and senior managers one after another yesterday afternoon, saying that the group's senior management is already working on a winter plan to comprehensively reduce expenses.
"Six days of unpaid leave a month is at least better than 30 days of leave!" Although employees are surprised by the preliminary discussion plan proposed by the group's senior management, most of them expressed their willingness to share the difficulties and give full support to tide over the difficulties together. .
Affected by the COVID-19 epidemic, Baocheng's consolidated revenue in the first quarter of this year was 59.461 billion yuan, a year-on-year decrease of 22.4%, a new low for the same period in the past six years. Among them, Yue Yuen, the main shoe manufacturer, saw its revenue decline by 20.6% in the first quarter. Pousheng, which is responsible for the channel business, saw its revenue fall by 25.1% in the first quarter.
Baocheng Group has 350,000 employees around the world. Currently, the measures planned are limited to Taiwanese employees and Taiwanese officials around the world. As for employees in production bases in Vietnam, Indonesia, and mainland China, they are not included in the implementation targets.
Located in Dongguan Yuyuan Industrial Park in Huangjiang Town
Baocheng International Group is the world's largest manufacturer of branded sports shoes and casual shoes. It provides OEM manufacturing/OEM design and manufacturing for international brands such as adidas. /ODM).
is also the only professional shoe manufacturer in the world that can serve dozens of international brands at the same time. Its annual output of footwear exceeds 300 million pairs, accounting for approximately 20% of the global sports shoes and casual shoes market.
Baocheng plans to take unpaid leave
Fengtai Yuqi will not follow up yet
Baocheng Group took the first shot and announced that it has developed an unpaid leave and salary reduction plan. The second shoemaking brother Fengtai and the third brother Yuqi said that they currently have no plans to follow up.
Fengtai spokesperson Chen Liqin said that there are currently no plans to take unpaid leave or reduce wages. However, things in the future are unpredictable and measures will be taken based on the actual situation. The key point is to "observe how long the epidemic will last, no one can tell for sure." Fengtai's main customers are Nike, accounting for 80% of its revenue from Nike, but Baocheng is also a major customer in addition to Nike and Adidas.
Chen Liqin also mentioned that the Fengtai India factory has been suspended until May 3 in accordance with the local government’s epidemic prevention regulations. The production and finance will be affected. The follow-up measures will be adjusted after the resumption of work. Everything will be based on the actual development situation. The Indian factory’s output this year will be affected. More than 24%, about 30,000 employees in India are affected.
In addition, Yuqi-KY (9802), a major outdoor shoe manufacturer, also admitted that it has no plans to take unpaid leave. Yuqi Vice President Liao Zhicheng pointed out that "there is no such plan at present." He was unwilling to assume the development measures of the subsequent epidemic situation. He only said that the future uncertainty is very high and depends on the development of the epidemic and changes in the end demand market.
Comprehensive: Many Taiwanese media, professors in the shoe industry, printing and dyeing people, etc.
