Chinas Shift from industry drains life from steel town

1.0 Identification of problem

Inappropriate compensation package for contract employees in steel
industry
2.0 Identify causes of the problem
2.1. Chinas economic slowdown
Closing the steel industry is meant to eliminate excess capacity in
order to control overinvestment problem in steel industry. Steel prices
begin to fall caused by oversupply.
2.2. Extensive pollution
Steel industry has created excessive emissions and improper storage of
hazardous waste. Failure to meet environmental standard accelerated
the closure and decreased the compensation for all the layoff
employees. The firm was fined 400,000 yuan and unable to protect
employees compensation benefits.
2.1. Economic restructuring
The steel demand fades in China caused the price of steel decreasing
dramatically. Hence, the government shifts the giant economy on
customer spending, services and technology-driven manufacturing.
Chinas will restructure heavy industry into Technology Park and
intelligent manufacturing systems.

3.0 Alternative solutions

3.1 Law and rules

Government can set a law and rules to industry, such as minimum
wages and benefit. Government can be raises the minimum wages to
ensure their citizen can be survive. Through this rule, the industry
needs to comply with the rule to pay the wages and benefits to
employees.
3.2 Government provide subsidy and training program
Government can provide some subsidy such as cheaper house program.
All citizen have qualify to apply the program if their wages less that
minimum wages. Besides, government also can provide the training
program to them help them learn and develop the skill.
3.3 Trade union
Trade Unions must have the power to help their member struggle the
wages and benefit. Trade union function is protecting the member
benefit. Therefore, Trade union must help their member negotiation
with their employers.
4.0 The best solution
4.1 Law and rules
Through the law and rule, the industry needs to comply with the rule to
pay the wages and benefits to employees. Industrial will be force to
provide the appropriate wages and benefit to their employees. If the
industrial foul, the government will give the punishment to them.

5.0 How to implement the solution

Government must re-measure the law and rules to industries.
Government can be raises the minimum wages to ensure their citizen

can be survive. Hence, government needs to change the policy, then

they must consider on their citizen benefit to protect their benefit.