Spain's Footwear Industry Is Under Attack.

Here world Clothing and shoes The Xiaobian of the network introduces the Spanish shoe industry: the underground economy which is inseparable from the leather craft that is difficult to be inherited.

Spain is the second largest footwear producer in the European Union after Italy. 2013 Spain produced 96 million 500 thousand pairs of shoes. Of the 1400 shoe factories in Spain, more than 2/3 factories are concentrated in the Mediterranean coastal areas of Valencia, many of which are clustered around Elche and Alda.

Spain is the second largest footwear producer in the European Union after Italy. 2013 Spain produced 96 million 500 thousand pairs of shoes. The "made in Spain" shoes sell well at home and abroad, and the prices are almost the same as that in China. This is because nearly half of the shoe factories in Spain belong to the underground economy. The factories pay employees for tax avoidance, and the wages of workers are low, so the production costs of these factories are low. Because of the bad working environment, young people in Spain no longer work in shoe factories, and the inheritance of leather technology is also a problem.

Jose Maria Mollinedo, a tax official at the Spanish Ministry of finance, said the Spanish shoe industry was "underground economy".

According to a study published by University of Autonoma Madrid, the underground economy produced nearly half of Spain's shoes.

Of the 1400 shoe factories in Spain, more than 2/3 factories are concentrated in the Mediterranean coastal areas of Valencia, many of which are clustered around Elche and Alda.

Some of the large retailers of Louboutin and Zara are produced in Spain.

Nearly 25000 employees of these shoemaking factories have inherited the excellent leather technology since nineteenth Century. 1970s was the golden age of Spanish shoe manufacturing, when American businesses moved the shoe manufacturing industry to Spain, a relatively backward economy.

As the EU lifted its import quota on Chinese shoes in 2005, Spain's shoe industry was hit by the same as other European countries.

　　 The continuous production mode

However, Spain's middle and high end shoes resisted the impact. In 2013, the Spanish shoe exports amounted to 2 billion 640 million euros, creating a new record.

But some Spanish footwear manufacturers pay private salaries in cash for tax avoidance purposes.

"I remember paying wages all the time," said Manuel Molina, a 57 year old leather cutter. He recalled that his mother had worked in the factory near her, and that her salary was paid in cash so that the factory did not have to report to the Inland Revenue Department.

This is a common practice, because employees do not have to do a lot of work in a factory, such as cutting leather, cloth, or suturing. Small workshops can do the work even at home. For female employees, they can work at home while taking care of their children.

Molina said that because of the recession in Spain, more and more people are willing to work in these underground shoe factories. His six brothers and sisters and their parents are all engaged in making shoes.

Spain footwear industry The association FICE declined to comment on the issue. They preferred to emphasize that Spain's exporters of shoes had increased to 170.

Carlos de Castro, a professor of sociology at University of Autonoma Madrid, says many people in the shoe factory have not been declared to work. These include tailors who work at home, illegal workers who load and unload trucks.

Some factories will declare some jobs to tax collectors, while others will be outsourced to private workshops.

This practice angered some trade unions and legitimate shoe factories. They complained that they had faced unfair competition.

"We do not compete with these underground businesses. They do not pay staff salaries and do not pay social security for their employees. The cost of each pair of shoes they produce is 2 to 3 euros cheaper than ours." Juan Antonio Macia, manager of Salvador Artesano shoe factory in Elche.

　　 Young people are far away from the craft.

However, employees of these underground factories seldom complain about their low salary and bad working environment, because they are afraid of losing their jobs, and the unemployment rate in Spain is as high as 23.78%. Employees who have signed contracts are not very well paid, and their salaries are very low - the monthly income before tax is between 963-1060 euros, and these contracts do not provide much job security.

"The price of shoes we produce is almost the same as that of China." Angel Cerda, a member of the Elche branch of the CCOO, said CCOO is Spain's largest labor organization.

Carlos de Castro said that because of bad working conditions, young people would not like to work in these underground factories, and Spain's leather technology may be lost. "The grandmother passed it on to her mother, and the mother passed it on to you again, and the leather craft was handed down from generation to generation." He said.

Molina's son and daughter are 29 years old. They are twins. Molina often advises them to "engage in". shoes Manufacturing, but don't work in an underground shoe factory. "