A Study On The Wage Mechanism To Improve Manufacturing Competitiveness In Hubei Province

After years of development,total output of manufacturing industry in Hubei Province comes to great achievements, which is the key industry to fulfill the rising of central China stratagem. However, the fact should not be overlooked is that its relative advantage is in decline trend. In the domestic and international market, it is lacking in core competitiveness in terms of industrial structure, management level and self- renovation ability. The main reason is that manufacturing enterprises have been produced at the expense of using of resources and employing cheap labour, which brings low labour productivity with manufacturing industry in Hubei Province and its competitive advantages could not be sustainable.Basing on these realities, researches are made on a view of wage mechanism in this paper in order to enhance the competitiveness of manufacturing industry in Hubei Province. First of all, it has comparative advantage because of lower wage, but its competitiveness is below the average in China and other developed countries. Secondly, these indexes are built to evaluate different dimensions of industrial competitiveness on the base of the theoretical researches, including labor productivity, unit labor cost, quality competitiveness index, R&D human capital and asset per person. Several results of analyzing Hubei's manufacturing data show that there is positive relativity between wage level and manufacturing competitiveness and labor productivity plays a decisive role to improve industrial competitiveness. Thirdly, according to essential relationship between wage and industrial competitiveness, the crucial strategy should be to develop new labor intensive industry. Finally, this paper shows that manufacturing enterprise in Hubei is in a crucial moment. It is urgent affair to reforming current wage mechanism to promote regulation and optimization of industrial structure and improve largely labor productivity, which includ attaching importance to accumulation of human capital and independent innovation instead of labor cost and resource. It would offer sustaining Competition impetus to manufacturing industry in Hubei Province.