Harder to hire and fire Chinese Employees in China because of new Chinese Labors Laws
June 2013, with the new Chinese President Xi cracking down on corrupt Chinese government officials. Chinese employees now know that they have the advantage over their employees. It used to be government officials were on the side of employers. Now these officials prefer to sit on the fence when it comes to making a decision on rightful or wrongful dismissal of a Chinese employee.
Quality Control and Manufacturing work in Mexico increased rapidly since President Neito took power in 2014 – Mexican Labor Laws were changed.
BuyINSPECT Quality Control services in Mexico jumped up by 30% in 2012 and is still climbing up in 2013.
The main reason is because the Mexican labor cost is getting to be at par with the Chinese labor cost per worker. Many US companies have worked out that it is definitely cost smart to use Mexican suppliers or build their own factories across the US/Mexico border. Logistically there is the advantage of shipping finished products and components across to the US border at lower costs and on a “just-in-time” demand and need strategy. It is also easier to manage product recalls, manage returns and reworks on short notice.