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    On The Reform Of Income Distribution

    2010/11/3 11:19:00 51

    Income Distribution

       According to relevant authoritative sources, the NDRC is soliciting opinions on the guiding opinions on strengthening the regulation of income distribution. Over the past 30 years since reform and opening up, China Resident income Substantial growth, but the problem of distribution imbalance has also become increasingly prominent. Data show that the Gini coefficient in the mainland has surged to 0.48, far exceeding the warning level of 0.4. China must say "no" to the growing polarization between the rich and the poor.


       The $38 million super luxury sports car was sold by mysterious buyers on the first day of the auto show; the sales of watches and jewellery tens of thousands of Yuan went up steadily; LV, GUCCI and other brand stores crowded; the rich rich group and the world's top second luxury market names; in 2009, the Gini coefficient of China climbed to 0.47; the income gap between the highest income 10% people and the lowest income 10% people reached 20 times.


    The minimum wage in China is 25% per capita GDP, the world average is 58%, the minimum wage in China is 21% of the average wage, the world average is 50%, the civil service wage is 6 times the minimum wage, the world average is 2 times, the executive wage of Chinese state-owned enterprises is 98 times of the minimum wage, the average value of the world is 5 times, the wage difference of the Chinese industry is 3000%, and the world average is 70%.


    At present, the income ratio of urban and rural residents in China is 3.3 times, and the highest in the world is about 2 times. Wages of staff and workers The gap is also obvious, the difference between the highest and the lowest is about 15 times, the income gap between the top executives and the front-line workers is about 18 times; the difference between the state-owned enterprise executives and the average social wage is 128 times; intelligence and hard work are not related to income; everyone is "grabbing identity" and "robbing the industry".


    Monopoly industries, civil servants, electricity, telecommunications, petroleum, finance, tobacco and so on. Government-affiliated institutions Equal status means high income, high welfare and high class.


    In the magazine "seeking truth" published in April 1st, Premier Wen published several questions about developing social undertakings and improving people's livelihood. If the income gap continues to expand, it will become a major hidden danger affecting economic development and social stability.


    In the opinion on the key work of deepening the reform of the economic system in 2010 announced in May, the NDRC has further concretialized the reform of the income distribution system. The opinion clearly stated that in the field of the reform of the income distribution system, China will put forward the goals, priorities and measures to adjust and optimize the distribution pattern of national income, and hope that the wage of the front-line employees in the competitive industry can be doubled within 5 years, and it is possible to write the plan into the 12th Five-Year plan. Its so-called competitive industry front-line staff, is currently widely concerned about the small and medium enterprises, labor-intensive enterprises in the medium and long term with minimum wage standard of industrial workers.


    Compared with the social income distribution system, the income distribution system of small and medium-sized enterprises is also one of the constituent members. The national income distribution system will be implemented through the cooperation of enterprises and other links. Different enterprises will play different roles and bear different responsibilities in this process.


    The state looks at the distribution system from a macro perspective. It controls the economic levers by means of policies. The enterprises look at the distribution system from a micro perspective, and regulate the internal income distribution of the enterprises based on the premise of developing and adapting to the market environment. In the short term, the income distribution system can not immediately affect the income distribution of enterprises, and its impact is the long-term change in the concept of employment rather than the rise and fall of short-term remuneration.


    For example, small and medium-sized enterprises generally exist in the reality of low industry status, strong labor intensity and small enterprise size. More than 90% of the enterprises are first-line employees, and their salaries are somewhat low. In addition to the senior technical staff with a higher level of technology, other grass-roots workers with lower technical level are below the lowest social wage line. It can be said that the increase in the minimum social wage line of the income distribution system will greatly increase the income of their grass-roots employees, which will have a very direct impact on them, and the impact on the limited scale automobile repair and auto parts enterprises will also be enormous. By raising the minimum social wage line to raise the wages of the lowest income class, the employment cost of small and medium-sized enterprises will increase again. In fact, it will also accelerate the process of the end of China's low cost employment era.


    In response to "suggestions for doubling the minimum wage standard in 5 years", it has been commented that "the government pays a visit and the enterprise pays the bill". This has a certain impact on enterprises and employment. On the one hand, small and medium-sized enterprises exist in recruitment difficulties; on the other hand, grass-roots workers exist in employment difficulties. For those small and medium enterprises with labor-intensive and small profits, the increase of the minimum wage base is undoubtedly an increase in the cost of labor. In addition, for other small and medium enterprises, the recruitment of grass-roots employees has also increased.


    In fact, faced with stimulating market competition, small and medium-sized enterprises outside the monopoly have gradually entered the era of meager profits. The more simple and mechanized operation is, the lower the value created by the employees at the grass-roots level is, because the salary is naturally not high. In the small and medium-sized enterprises, the grass-roots employees often have a large proportion in the total amount of employees. In the national income distribution policy, the biggest beneficiary group of the "minimum wage standard doubling 5 years" is precisely the grass-roots employees, so it will be a great cost for small and medium-sized enterprises to raise their salaries.


    For auto repair and auto parts enterprises, "5 years doubling" is a difficult task for many enterprises. Remuneration has always been the focus of competition between the two sides. First, the improvement of the minimum wage line first brought about a rise in the salary of its grassroots technicians in the labor market, which made it very difficult for the grassroots employees who were already very difficult to recruit. Two, the improvement of the minimum wage line will make the auto repair and auto parts enterprises more sensitive to fierce competition, limited profit margins and large number of grass-roots employees. In the case of constant profits, a significant increase in labor costs may force enterprises to reduce employment, which will also have a certain impact on the employment of grass-roots personnel.


    At present, only those enterprises that have long been hovering over the minimum wage standard or have not been over paid in recent years have followed up the wage increase policy. However, what is expected by the policy is to raise the minimum wage, so that the wage level of all levels of enterprises is rising and rising.


    For small and medium-sized enterprises, the provision of national policies is a hard indicator, and the great trend of market environment and development will ultimately promote the transformation of enterprise income distribution. The original competitive advantage of low labor cost will no longer exist. Instead, it will turn to management and efficiency, and finally win the market with the comprehensive competitiveness of technology, technology and brand. The employment cost of the grass-roots employees is still a difficult problem faced by small and medium-sized enterprises in the development process for quite some time. But with the upgrading of technology, technology, brand, management and other comprehensive competitiveness, it will also be gradually solved. The reasonable employment and high cost performance will become the trend of future employment of small and medium enterprises, and will completely abandon the original low cost employment era.


    Due to the neglect and overuse of human resources market in the early days, many enterprises in China have to repay decades of human resources debt, which is a difficult election for small and medium-sized enterprises with limited scale and strength. Once again, raising the minimum wage and the low line in the income distribution system has given birth to a fundamental change in the concept and mechanism of employment of small and medium-sized enterprises. Small and medium-sized enterprises will completely change the original grass-roots employees "iron Camp Camp soldiers" this kind of blind employment, abuse of labor, with unlimited compression labor cost as the profit point employment status, but to scientific employment, humanized employment gradually change. The grass-roots employees with certain professional skills have gradually completed the transformation from black collar to blue collar. While changing the concept and strategy of employment in small and medium-sized enterprises, the original proportion of income distribution will also change. Grassroots employees will no longer be simple wage benefits in the past. They will receive wages with technical content according to their own technical level.


       It should be said that the "income distribution program" is beneficial to the people's livelihood in the country, and it is a vane in the enterprise, which is imperative in today's society.

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