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    Two Controversies Impede The Introduction Of Wage Regulations

    2010/9/2 9:06:00 52

    Controversial Wage Ordinance

    Due to the controversy over the key points such as collective wage consultation and monopoly wage management, the wage regulations which we all look forward to are hard to come out this year.


    The first Financial Daily reporter learned yesterday from an authoritative expert who was involved in the drafting. Recently, the relevant departments once again organized a survey on the wage regulations and held a symposium.

    Different from the information published in previous years, the legislative process is not optimistic.


    Two

    focus

    dispute


    The wage regulations are led by the State Council, and the Ministry of human resources and social security and the National Federation of trade unions are involved in the drafting.

    According to the official of the Ministry of personnel protection, the wage regulations have been formulated since 2007. After many studies, many experts participated in drafting and revising, and finally formed a draft.

    At the beginning of last year, the Ministry of human resources has said that the draft wage Ordinance has been formed and is listening to opinions from all sides.

    But so far, it still can not be successfully introduced.


    At the end of July this year, there were media reports that the Ministry of human resources revealed that the wage Ordinance was expected to be introduced in the year, but the Ministry of human resources

    News

    Spokesman Yin Chengji later said that he had never said so.


    The experts told reporters that the reason why the wage regulations are difficult to come out is that there are major differences on several issues.


    According to the content of the draft regulations on wages, which was previously obtained by our reporter, the restriction on the wages of monopoly enterprises, especially executives, is one of its core contents.

    However, because the draft includes "the approval of the Ministry of human resources and social security, the Ministry of Finance and the SASAC" for the increase of wages, informed experts told reporters that the draft has encountered pressure from the relevant ministries and commissions in the process of determining the draft. On the other hand, it has also been questioned whether there is any suspicion of interfering in the internal management of the enterprise.


    Another dispute stems from the collective consultation on wages.

    wages

    Determine the way.

    According to the draft agreement, if a worker proposes to negotiate the wage quota, the enterprise side must accept it.

    However, this provision is facing great difficulties in execution.


    "If the business side fails to cooperate, what is to be done? Administrative punishment is not possible.

    It is attributed to "labor disputes caused by collective contracts" and is not operable.

    A labor relations expert commented.


    At present, the law on collective wage consultation is relatively vague. There is no mandatory provision. Wage collective bargaining is carried out under the strong promotion of local trade unions and is often a mere formality.


    Will the wage regulations promote the collective bargaining system? The experts on labor relations said that it seems not optimistic now.


    Hindered dilemma?


    In addition to the above two controversies, some economists believe that the reason why the wage Ordinance is difficult to produce is that the government is still worried about the next step.

    If the macro-economy goes well, the wages of workers will be improved. On the contrary, raising the wages of workers may result in an increase in the operating costs of enterprises, thereby affecting employment.


    "In the final analysis, it is still a matter of efficiency or fairness.

    From my personal point of view, 30 years of reform and opening up has been a priority of efficiency, and now is the time to think more about fairness.

    The scholar said.


    In order to deal with this dilemma, all sectors put forward suggestions such as "lowering taxes and raising salaries" and "increasing profits from state-owned enterprises".


    At present, all walks of life expect highly of the wage regulations and are regarded as the "golden key" to solve the problem of income distribution in China.

    Li Shi, director of the center for income distribution and poverty research at Beijing Normal University, said that the main reason for the imbalance in China's income distribution is not wage income. Therefore, a wage Ordinance can not be expected to solve the problem.

    Its biggest role is to manage the low and high level, that is, by raising the minimum wage standard and improving social security to "raise", by controlling the high income of monopoly industries to "limit the high".


    Wang Xiaolu, deputy director of the National Economic Research Institute of the China economic restructuring fund, told our reporter that we should change the current situation of income distribution imbalance and focus on high income groups. Unreasonable high incomes must be controlled, such as gray income.


    The distribution of grey income and national income released by Wang Xiaolu in July shows that the scale of China's gray income is about 5 trillion and 400 billion yuan, which has directly led to a serious imbalance in income distribution.

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