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    Three Years Of Wage Regulations Still Fail To Produce &Nbsp; National People'S Political Consultative Conference National Survey

    2011/8/20 16:02:00 48

    Wage Brewing Three Years Dystocia Research

    The wage regulations, which have been brewed for more than three years, have once again become deadlocked.


    People familiar with the matter recently told this newspaper that due to the difficulty of reaching agreement on various key issues, the timing of the "wage Ordinance" was postponed again, at least in the coming year.


    One of the key issues of dispute is: if we want to set minimum wage and establish wage growth mechanism, it is bound to impose mandatory requirements on enterprises to raise wages for workers, which will increase the cost pressure of enterprises.

    According to the request from the relevant departments, the government should also reduce taxes on the enterprises at the same time, leaving room for guaranteeing the wage increase of the workers.


    It is alleged that in the draft regulations on wages, the minimum wage arising from these problems and the mechanism of normal wage growth have been opposed by departments such as the National Federation of industry and commerce.


    In addition, the regulations on "equal pay for equal work" in the wage Ordinance have not found a satisfactory solution to state-owned enterprises and related departments.

    Because in the state-owned enterprises, a large number of labor dispatching workers, the implementation of "equal pay for equal work" means that the cost of employment of these state-owned enterprises will increase significantly.


    People's protection department official told reporters, "the Ministry of human resources has already informed internally that the wage regulations should be avoided.

    Because some disputes are difficult to solve in a short time, and these problems are not solved by the Ministry of human resources.

    Now the timetable promised will only make future work more passive. "


    "

    wages

    A member of the National Federation of trade unions, which was enacted by the Ordinance, said that the current wage Ordinance is only a draft. It is still very early to report to the State Council in the process of research, argumentation and revision, so there is no specific time for publication.


    Drafting Road


    In early 2008, the drafting of the wage Ordinance was placed on the agenda of the relevant departments.

    It is reported that the "wage Ordinance" will be a legal requirement higher than that of general departments, including all enterprises other than civil servants and other special groups, regardless of central enterprises and private enterprises.

    The aim is to solve the problems of low wages, slow wage growth and wage arrears of workers at the bottom line, and establish normal wage growth mechanism and wage consultation mechanism.


    The wage regulations will include general provisions, wage payment, conditions for normal wage growth, stipulation of wage negotiation and negotiation.

    Zhang Chewei, deputy director of the Institute of population and labor economics of the Chinese Academy of Social Sciences, said that the wage regulations will not elaborate every clause, because fundamentally, the price of labor is determined by supply and demand, but if there is no constraint on a framework, the normal wage growth mechanism will not be guaranteed.


    In January 2008, Qiu Xiaoping, director of the wage Department of the Ministry of labor and social security, said for the first time that the legislative group formed by the more than 10 departments, including the SASAC, the National Federation of trade unions and the Federation of Chinese enterprises, has taken the lead in the Ministry of labor and social security.


    Although it has entered the drafting stage as early as 2008, the wage Ordinance has not gone smoothly since then.

    In the two years of -2010 in 2009, the SASAC, the National Federation of industry and commerce, and the all China Federation of trade unions began to investigate their respective key issues one after another.


    Among them, the state-owned assets supervision and Administration Commission

    distribution

    The Bureau's research mainly focuses on the central enterprises, which involves the total amount of labor and employment, the form of employment and the dispatch of labor services.

    In the investigation, the SASAC proposed that the wages of other employees should be gradually incorporated into the total wage management, and standardized use and standardized management of external labor personnel.

    This issue has since been described as the controversial "equal pay for equal work" provision in the wage Ordinance.


    The National Federation of trade unions (FTU) focuses on establishing a collective bargaining mechanism for enterprise workers through the establishment of trade union organizations.

    At present, the all China Federation of trade unions has asked all parts of the country to set up trade union organizations as soon as possible, and proposes that from 2013 to this year, the collective wage negotiation system of enterprises established by trade unions across the country has reached 80%.

    Zhang Chewei said that if there is not a unified consultative organization within the enterprise, the interests of the labor force can not be guaranteed when wages are raised and wages are arrears, because the labour force is weak relative to the management.


    In July 2010, Yang Yongqi, a researcher at the Institute of labor and social security of the Ministry of human resources, said that the draft regulations on wages had been completed and will be submitted to the State Council recently.

    In the same year, the wage regulations entered the two legislative plan of the State Council.


    However, soon the hope of the "wage Ordinance" was shattered.

    In July 25th this year, Yin Chengji, spokesman of the Ministry of human resources, made a clear statement at a news conference that the wage regulations were still being studied and demonstrated.


    NPC and CPPCC National Survey


    Up to now, research on wage growth mechanism is still in progress.

    In May this year, -6, the CPPCC National Committee of the Chinese people's Political Consultative Conference (CPPCC) carried out a special investigation on the reform of the distribution system and the construction of the normal wage growth mechanism for employees.

    The research objects of the CPPCC include not only state-owned enterprises and private enterprises, but also local people's protection departments, SASAC, Federation of trade unions and financial departments.

    It is reported that the CPPCC research group will provide pertinent countermeasures and suggestions to the relevant departments based on the findings of the survey.


    The research content of the CPPCC involves the wage distribution mechanism of enterprises, the establishment of wage guidance line system and the collective bargaining of wages.

    The research team made recommendations in this regard when they were researching in Yunnan and Hubei.


    People familiar with the matter say that the core of the wage Ordinance is nothing more than wage growth guarantee mechanism, equal pay for equal work and collective wage consultation mechanism.

    But these three points are also the most difficult points of controversy.


    Immediately after the National People's Congress's research is also concentrated.

    The survey began in early July this year and will end in the latter part of this month.

    Led by the Standing Committee of the National People's Congress, the Ministry of personnel and social affairs and the National Federation of trade unions participated in 3 sub committees. They were led by 3 vice chairmen to 6 provinces in Heilongjiang, Guangdong, Liaoning, Zhejiang, Fujian and Henan.


    It is understood that the choice of the 6 provinces is mainly due to the consideration of the differences between different regions. The survey mainly focuses on other situations such as labor dispatch and violation of the rights and interests of workers in small and medium-sized labor-intensive enterprises such as construction, manufacturing, mining, catering, etc., and pushes them into establishing collective bargaining and collective contract system to ensure the implementation of the labor contract law.


    At present, the first group of inspection and research has completed the research in Heilongjiang province. The second group of inspection and research has also concluded the investigation in Guangdong, and the third group will also go deep into other provinces' inspection and research recently.

    The National Federation of trade unions (FTU) is currently studying the first group's Research Report and is preparing to report to the NPC Standing Committee.


    According to the people familiar with the matter, the investigation of the National People's Congress and the CPPCC is not directly related to the "wage regulations". Their research is not directed at the wage Ordinance, but the content of the survey is consistent with the contents of the wage Ordinance.

    {page_break}


      

    dispute

    focus


    The National Federation of trade unions revealed that, since the second half of last year, the Ministry of human resources has negotiated many times, but no unified opinions have been formed. After a long time, it was basically shelved.


    It is said that setting minimum wage, establishing wage growth mechanism and equal pay for equal work are the focus of controversy at present.

    The difference between the minimum wage of staff and workers is mainly to adjust the proportion of wages and whether to adjust every year.

    Because of the increase in wages, the SASAC, the Federation of enterprises and the National Federation of industry and Commerce have different opinions. If the proportion of wage increases is high and adjusted annually, the burden of enterprises will be increased.


    In April this year, Yang Zhiming, Vice Minister of the Ministry of human resources, said at the National Working Conference on labor relations that efforts should be made to achieve the minimum annual wage growth of more than 13% per year, and the annual average wage of workers and staff members increased by 15%. The goal of doubling the wages of workers and staff members was achieved during the "12th Five-Year" period.

    In addition, he also put forward two other enterprises' target of wage increase: the wage growth of enterprise staff is not less than the growth of enterprise's economic efficiency, and the wage growth of the front-line workers of enterprises is not lower than the average wage growth of enterprises.


    Zhang Benbo, head of the research group of the national development and Reform Commission, "the model of fair distribution in China", said that raising the wages of front-line workers is the first step in the reform of income distribution. The key to achieving this step is to implement the minimum wage standard and establish a wage growth mechanism.


    However, judging from the controversy over the wage Ordinance, it is not easy to achieve this step.

    According to people familiar with the matter, the National Federation of industry and commerce thinks that SMEs have always been living in a bad environment with too much tax burden.

    To raise wages, we first need fiscal and tax departments to implement tax reduction measures, so that enterprises can have money to guarantee wages for workers.

    But the finance and taxation departments also need coordination.


    In June last year, when the National Federation of industry and Commerce in Zhejiang, which was relatively concentrated by small and medium-sized enterprises, Huang Mengfu had made it clear that raising the income level of low-income groups could not regard SMEs as the main source of taxation.

    The government should be determined to reduce taxes and reduce fees for small and medium-sized enterprises, especially small and micro enterprises, and further reduce the burden of small and medium-sized enterprises, so as to allow more profit margins for employees to raise salaries.


    In fact, the Ministry of human resources, the State Administration of Taxation and the all China Federation of trade unions participated in the annual survey conducted by the National Federation of industry and commerce.

    The final report to the central authorities was jointly drafted by several departments involved in the investigation, which not only touched on the contents of the minimum wage, but also referred to the contents of collective consultation and the safeguard mechanism of wage increase for workers, according to people familiar with the matter.


    In terms of the minimum wage, the relevant departments of the Ministry of industry and Commerce and the Ministry of personnel and insurance have calculated that if the national minimum wage standard is to catch up with the average wage of urban workers 40%-50% during the "12th Five-Year" period, the annual minimum wage in the whole country should be around 14%-15% from 2011.

    The survey results show that the minimum wage in China is less than 30% of the average wage of urban workers.

    Finally, in the outline of the "12th Five-Year plan" issued by the Ministry of human resources, the average annual minimum wage increase is over 13%.


    Chen Yongjie, former director of the National Federation of industry and commerce research, said that raising the minimum wage standard is the basic guide line for enterprises to raise wages for workers.

    However, if we only raise the minimum wage standard, for enterprises, it will lead to the continuous increase of their labor costs, and the pressure of enterprises will be bigger and bigger.


    Since the beginning of this year, the National Federation of industry and Commerce has made a survey of SMEs in 17 provinces and cities, and the result is that the survival of SMEs is even more difficult than the outbreak of the financial crisis in 2008.


    But people from the National Federation of trade unions said that the number of small and medium-sized enterprises that started in China was almost the same as that of the failed ones.

    The National Federation of industry and commerce only counted the bankrupt enterprises, but did not count the enterprises that were re opened.

    Therefore, the research on the so-called small and medium enterprises of the National Federation of industry and commerce is biased.

    According to the National Federation of trade unions, it is normal for SMEs to bankrupt tens of thousands of households in Guangdong.


    Compared with small and medium-sized enterprises, state-owned enterprises have little opinion on the minimum wage of workers.

    SASAC and state-owned large enterprises are mainly sensitive to the issue of labor dispatch.

    Due to the fact that the wages of the dispatched workers are not included in the total wages of the employees of the state-owned enterprises, they are not included in the wage cost, but only as a service fee, which will not affect the interests of the bosses and veteran workers of the existing state-owned enterprises.

    How to stipulate the wages of the dispatched workers and how to ensure equal pay for equal work has become another difficult problem in the wage regulations.


    A research report on domestic labor dispatch completed by the National Federation of trade unions said that the total number of labor dispatch personnel in the country has reached about 60000000, which is more than doubled than the more than 27 million published by the Ministry of human resources, mainly in public enterprises and institutions. Some central enterprises and even more than 2/3 employees belong to labor dispatch.

    In the central enterprises, there is a large income gap between tens of millions of labor dispatching forces and regular enterprises of central enterprises.


    The provisions of the wage regulations on equal pay for equal work mean a significant increase in the cost of labor for central enterprises, which has also become the focus of the central enterprises' opposition.

    Previously, the Ministry of human resources has determined that the average wage of the central enterprises' employees is 53 thousand yuan, and the implementation of equal pay for equal work will make the reform of state-owned enterprises' total wages faced by the SASAC face no small challenge.


    The National Federation of trade unions said that in the formulation of the wage Ordinance, the Ministry of human rights protection mainly stood at the position of safeguarding the interests of enterprises, but now it is neutral and must coordinate complicated relations.


    In the "12th Five-Year plan" released earlier this year, the State Council put forward the two synchronization of "realizing the simultaneous growth of household income and economic development, increasing labor remuneration and improving labor productivity".

    However, from the relevant indicators in the first half of this year, the actual per capita disposable income of urban residents in China is 7.6%, but the growth rate of GDP has reached 9.6%, and the goal of "two synchronization" has not been achieved.


    Under such circumstances, the wage Ordinance, which has attracted much attention, is once again deadlocked.

    People familiar with the matter described that "the introduction of the wage Ordinance is now a matter of eight words."

    The promotion of the wage regulations is an important step in promoting the reform of the income distribution system during the "12th Five-Year" period.


     

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