Policy Support a Key to Employment Reform in China's Institutions

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Last updated at: (Beijing Time) Wednesday, January 08, 2003

Policy Support a Key to Employment Reform in China's Institutions

Policy support in areas like social security for laid-off employees is vital to the ongoing employment reform in China's public institutions, according to experts and personnel officials.

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Policy support in areas like social security for laid-off employees is vital to the ongoing employment reform in China's public institutions, according to experts and personnel officials.

Employment reform in China's 1.3 million state-owned institutions with about 30 million employees, who have lifelong jobs, has lagged behind that in government offices and enterprises.But it is now a hot topic.

The government is seeking a contract-based employment system between employer and employee similar to that operated in the private sector.

"We must carry out different policies according to different situations during employment reform in public institutions," said Wang Tongxun, an expert of China's Institute of Personnel and Human Resources.

The central government issued two circulars urging public institutions to push forward employment reform in 2000 and 2002 respectively. The relatively developed provinces have made great strides in reform due to their strong financial positions.

Zhejiang province in east China started the reform in 1998, earlier than the publication of central government's policy, and has already completed it in some cities and some sectors, said Chen Zhongfang, director of the provincial personnel bureau.

The Chongqing Municipality in southwest China carried out the reform in a prudent but all-round way from the start. After repeated evaluations, Chongqing formulated a dozen regulations to ensure the smooth development of the reform, said Zhong Xuqiu, thedeputy director of local personnel bureau.

Chongqing issued a support policy to provide social security tolaid-off workers of public institutions, which is considered the key to cutting down the pay roll. To date, Chongqing has successfully reduced the number of employees in public institutions by 13,000, while over 100,000 staff have signed employment contracts, according to Zhong.

The reform also met difficulties in a number of provinces, especially the relatively undeveloped in the country's west region.

The Ningxia Hui Autonomous Region in northwest China has found difficult to handle lay-offs as the local government is financially weak in establishing an efficient social security network, according to Wang Zhiming, deputy director of the regional personnel department.

"Without adequate policy support, the employment reform in public institutions could not be carried out effectively, " said Wang.

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