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Auto companies cut salaries to save themselves is a powerful medicine, but not poison

Publish Date: 2020.03.16

      From Stuttgart, Germany, to the rust belt, to wuhan, Shanghai, Beijing... Car companies' anxieties will soon spread through every nerve ending of the global car chain.


      In the Chinese market, which used to be labeled "demographic dividend", the "dividend" actually translates into pain for families in the cold winter.

 

      Last week, the China association of automobile manufacturers released data showing that in February, auto production and sales totaled 285,000 units and 310,000 units, down nearly 80% from a year earlier and nearly 80% from a year earlier. Under the impetus of the epidemic, the auto industry, which was already facing changes, started the whole industry ahead of time, involving everyone's shock.

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      "There are finished eggs under the covering; The old story of "if the skin doesn't exist, the hair will turn out to be a side effect" has become everyone's current situation. The decline in sales volume and the decrease in operating profit have increased the operating pressure of automobile companies.


      "Not much food left, scalpel pointed at staff"


      Saic's subsidiary, "one of the most profitable car groups", was the first to "pick up the scalpel". On March 5, saic released a statement on the adjustment of salary and benefits in 2020, the annual leave subsidy was cancelled for all employees, and the first-line full attendance award was transferred to the production struggle award, which was timely paid according to the production and sales arrangement.


      In the wake of the move, saic began cutting salaries for passenger cars. "performance bonuses for the three to six months will be reduced by 100 percent to 75 percent, depending on rank and operating conditions," saic passenger car employees said. In addition, by the end of the year, saic huizhong auto had signed a 22.2 percent pay cut with employees before tax.

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      According to the data, the net profit attributable to shareholders of listed companies is expected to be 25.6 billion yuan, about 10.4 billion yuan less than that of the previous year, or 28.9% less than that of the previous year.


      "It's a tough time for our auto industry." Baic group chairman xu heyi said this soon, baic marketing business committee to the internal "retail center staff sales assessment program" part of the content out. The performance appraisal program of "the most stringent task book in the history of baic" shows that from the leaders in charge to the general sales are facing a very huge pressure of assessment, among which the business is not up to the standards of dismissal even faced with disguised layoffs.


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      If these companies are still giving their workers leeway, the truth is that they are cutting back. Around the world, the cuts are already a year in the making.


      In March 2019 vw announced it would cut 10% of its management staff and 7,000 jobs by 2023. Ford has closed three plants a year, cut about 16,000 jobs and expects to cut another 12,000 by the end of the year. Daimler, which has stepped up cost-cutting, also plans to cut 15,000 jobs. Over the past year, the global auto industry has dumped more than 100,000 people.


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      Personal career planning needs to be reconsidered


      As the headline says, while this is a very typically non-politically correct view of individual destiny, I'm afraid we have to admit that it is. The enterprise has its own difficulties under the big change, and the individual is faced with a new problem.


      Many autobots may still recall that in the best of times, the average front-line employee in a car company was paid 30 months 'salary a year. For example, before 2018, the annual salary before tax of Beijing Benz after working for five years will reach about 280,000 yuan, and the salary in 2016 will be about 22 yuan (12 months 'salary + 10 months' year-end bonus). All the subsidiaries of baic can basically settle the Beijing hukou.

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      Saic-gm and saic Volkswagen can both earn about 300,000 yuan per year before tax, and saic can get 200,000 yuan per year before tax for passenger cars. Faw Volkswagen, which can be called the conscience of the industry in terms of employee salary imitation, has a different statistical caliber from other companies, and its annual salary of 280,000 yuan after tax after working for five years. At that time, the end of 27 months in 2011 will also become a big talk.


      Now, although some car company management have to face, cut wages and reduce the quality of life; The average employee may have to take a pay cut to make ends meet. Unfortunately, individuals cannot stop the industry from flowing.


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      However, we have to say that China's labor quality, labor competitiveness really look at the world is very high. According to the latest statistics for 2018, of China's 1.4 billion people, 992 million are young adults and people of working age, accounting for nearly 20 percent of the world's total. Of course, there is a hierarchy of labor force, but in fact, you read the article, even if you think of yourself as ordinary, but it is no exaggeration to say that your social competitiveness is actually very strong.


      Now, there's a lot of consensus on the future of electrification, which is that electrification, intellectualization, will replace human labor, and that will lead to widespread human unemployment. But an interesting statistic shows that Japan, which USES the most industrial robots, has a low level of unemployment among developed countries, while Britain, which has a strong resistance to industrial robots, has a high level of unemployment.

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      The reason is that using robots can reduce costs and improve competitiveness, which can promote the development of the whole industry and lead to more new jobs. According to the study, about 5 percent of jobs will be automated in the next 10 to 15 years, while the future of smart development will generate about 13 percent of new jobs.


      A sincere advice, personal fate is breathing under the pulse of The Times, if you really feel jobs may be faced with very big risk, then the wages of buffer zones, as soon as possible in the future corresponding knowledge need to charge as soon as possible, although human never lack, but others can't replace the individual ability is still the king forever.

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