Shanghai And Zhejiang Minimum Wage "Strive For The Upper Reaches"

"There is no more important issue than wages, because most people in this country live on wages."

A hundred years ago, the United States automobile king Ford paid much attention to the important role of wages. "The improvement of their living standards determines the prosperity of this country."

Today, his advice is still directly or indirectly beneficial to many countries including China. In April 1st, following the provinces such as Jiangsu, Shandong and Jilin, Zhejiang again raised the minimum wage.

According to the relevant personage, Zhejiang province last year four files.

Yesterday, the relevant experts said in an interview with reporters that raising the minimum wage is not a panacea. The relevant provinces should adjust the situation according to local conditions, adjust the situation according to the times, and properly do "subtraction", such as reducing taxes, especially the taxes of small and medium-sized enterprises.

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China's minimum wage system began in 2003.

In December 30th of that year, China adopted the "minimum wage regulations" and implemented it in April 1st of next year.

Strikingly, the minimum wage rule clearly states that "minimum wage standards should be adjusted at least once every two years."

Subsequently, the minimum wage of all provinces in the country has entered a period of adjustment.

The latest round of wage adjustment (the first quarter of this year) mainly involves 12 provinces and municipalities.

Among them, the minimum wage of 1310 yuan in Zhejiang province has taken the lead in replacing Shanghai's position.

Guangdong and Shanghai ranked second and third respectively in terms of 1300 yuan and 1280 yuan respectively.

Tianjin and Beijing both ranked fourth with the standard of 1160 yuan, and the minimum wage in Jiangsu, Shandong and Fujian was above 1100 yuan.

From a regional perspective, the minimum wage adjustment is mainly concentrated in the eastern coastal provinces and municipalities, and the number of adjustment in the central and western provinces is relatively small.

In addition, judging from the specific increase, half of the region's adjustment is over 20%.

Among them, Chongqing from the western region ranked first in the rankings with a 27.9% increase.

It is worth noting that the Beijing Federation of trade unions, in order to meet the needs of the new situation, will explore effective ways and means to fulfill the rights protection function of trade unions this year, including the first set of minimum wage standards for employees of foreign-funded enterprises, which can not be lower than 150% of the minimum wage standard in cities.

According to this standard, employees of foreign enterprises will get at least 1740 yuan or more.

As for the latest round of wage adjustment, Song Songxing, a professor at Nanjing University business school, told reporters that raising the minimum wage, especially in the eastern coastal areas, did not cause much accidents.

On the one hand, since last year, under the pressure of rising prices and rising inflation expectations, the previous minimum wage has been obviously "out of date". On the one hand, this year's "labor shortage" has spread to many provinces in the country. One of the important sticking points is that wages are too low. In addition, improving people's livelihood has become a topic of continuous concern for the decision-making level.

In an interview with the media, Su Hainan, chairman of the China Labor Association's remuneration Specialized Committee, also said that many provinces and municipalities raised the minimum wage standard is both feasible and necessary. "China's economic situation has gradually got rid of the impact of the financial crisis, the economic growth rate has increased month by month, the development trend of most enterprises has been improving, the average wage of workers has improved, and the CPI has shifted from negative to positive and has been increasing gradually. Meanwhile, the employment pressure has not changed much compared with 2010."

Su Hainan believes that raising the minimum wage standard has an immediate effect on increasing the income of low-income people, "improving people's livelihood, promoting domestic demand and stimulating regional economic development".

He also believes that in a sense, raising the minimum wage is also one of the ways to deal with the unfavorable factors in the international market, such as the RMB exchange rate appreciation and domestic inflation pressure.

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But the impact of raising wages is not unilateral.

"In order to recruit people, our factory is having a headache."

Yesterday, Mr. Zhang, the head of a small business in Jiangsu, complained to reporters on the phone, "do not mention the minimum wage, that is, the minimum wage in Jiangsu will be reduced by another 100 yuan. We can not afford it."

In the past few months, Mr. Zhang has been unable to recruit enterprises.

Mr. Zhang's trouble is not an example.

The statistics of China small and Medium Enterprises Association last May showed that as of the end of 2009, the number of SMEs registered in the industrial and commercial sector has reached 10 million 230 thousand, and there are still more individual businesses.

Before the rise of every minimum wage, there will be news that small and medium-sized enterprises will complain incessantly because of rising labor costs.

Song Songxing also pointed out that labor-intensive enterprises with low added value are still the mainstream enterprises in many provinces and cities in China. "No doubt, they will be under some pressure".

However, some enterprises have pointed out to the media that raising the minimum wage is more symbolic because the wage of many cities has far exceeded the minimum wage standard.

"Enterprises must adapt to the fact that labor costs are rising and cope with them through pformation and upgrading."

For the latest round of minimum wage increase, Zhejiang province human resources and labor and social security department deputy director Yuan Zhongwei think.

But Song Songxing believes that the government should also play a leading role in the relevant responsibilities.

"Raising wages should not only take into account the price level and improve people's livelihood, but also give overall consideration."

He said, "if there is no co-ordinated consideration, there will be a certain degree of vicious circle, that is, wage increases drive prices up, and price increases will further increase workers' expectation of wage increases, and then drive up wage increases."

"To break this vicious cycle, we need to jointly manage the macro and micro levels, that is, on the one hand, enterprises need to increase their productivity, and on the other hand, the relevant departments of the state should do well in the pformation of industrial structure."

Song Songxing said, "at the same time, when necessary, we should timely reduce the tax burden of small and medium-sized enterprises.

From the current standards, the income tax of SMEs still has room for reduction.

Ceng Xiangquan, Dean of the school of labor and personnel at Renmin University of China, also told the media that we should not blindly raise wages. "For the long-term development of the economy, we should strive to find a gold cutting point for labor and capital allocation".

Ceng Xiangquan suggested that the establishment of a mechanism conducive to low-income people's wage growth is the most important.