MOtorola
...trial Park has shown concern for sound environmental management in turning down some 50 investment proposals which failed to meet environmental concerns, including one project worth some US$200 million because of potential radioactivity hazards. High Employee Turnover Rate Companies operating in the Suzhou Industrial Park have to deal with the high employee turnover rate. This is because most of the employees who are local Chinese are young, ambitious, well-educated and need challenges. That can be considered as an asset and liability to the companies in the Suzhou Industrial Park. These well trained and skilled labor has unbelievable opportunities and thus even though many companies offer financial incentives such as stock options, the turnover rate stays high at 25%. Labor Shortage Labor shortage is another major challenge to the companies in the Suzhou Industrial Park. The Chinese government survey pointed out three major reasons for the labor shortage. First, the working conditions in the labor-intensive factories were not quite favourable, with long working hours and low wages, worsened by the risk of health problems from the harmful pollutants that the industries disposed of. Also, there were many cases of employers withholding wages for several months. Secondly, there is a structural imbalance between the skills needed by industries and those looking for employment. It was very easy for young people between 18 and 25 years old to find jobs, but it was extremely difficult for people over the age of 40 to get a job. On the other hand, there was a lack of skilled labor and many employers found it difficult to hire any workers for jobs like wielding and car repairing even if they would offer a monthly wage of 2,000 Yuan. Finally, rural migrant workers usually found jobs in the cities through the help of their relatives and friends. But many employers complained that they found it difficult to hire suitable workers, due to the inability to reach the right kind of labor suitable for its industry. Rising Land Prices An hour’s drive from Shanghai, the Suzhou Industrial Park has been attracting much foreign investment since its startup. But recent reports suggest that the city is losing its appeal ...