1) Problem identification

The compensation issue of the steel employee

2) Identify the cause of the problem
- The shut down of the mill
- China economic shift , it is from coal and steel, and toward tech and
-

finance which go into the shut down of the mill

steel prices fall : The fundamental problem is the mismatch
between supply and demand HSBC estimates that Chinese mills
are capable of producing about 1.2 billion tonnes of steel a year, but
that 400 million tonnes is currently surplus to requirements. A lot of
the new supply has been coming onto the market over the last two
years, just as demand has started to soften.

3) Alternative solution
- Provide training to the employee to develop their knowledge and
-

skill . Increase in skill will add on the employee value .

There should be the benchmark in term of rule and regulation which
stated the minimum wage and compensation require for the
employee .

4) The best solution

- Set a benchmark in term of rule and regulation : every employer
need to follow the rule and regulation . The employee must be pay
according to the minimum wages.
5) Implementation
- Fine the employer who did not follow the rules . It is to protect the
employee from being manipulated by the employer or irresponsible
party .