Official: Interests of workers, investors compatible in SOEs

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Last updated at: (Beijing Time) Friday, October 17, 2003

Official: Interests of workers, investors compatible in SOEs

China's state-owned enterprises (SOEs) with corporate governance should maintain the investors' rights and interests while protecting those of the workers, said a senior official Thursday.

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China's state-owned enterprises (SOEs) with corporate governance should maintain the investors' rights and interests while protecting those of the workers, said a senior official Thursday.

Li Yizhong, vice director of the State-owned Assets Supervisionand Administration Commission (SASAC) under the State Council, said SOE shareholders are representative investors of the state assets, and their interests represent those of the nation and the people.

According to him, managers, including senior managers, of state-owned or state-held corporations belong to the working class, the same as general workers. Therefore, both the workers' democratic rights and the managers' rights of decision-making should be stressed.

The working class has been the leading class in China since the NewChina was established in 1949, and workers are regarded as owners and enjoy democratic rights in China's SOEs.

In line with China's ongoing reform of its economic system, the newly-established SASAC declared its intention to establish perfect corporate governance in the 191 SOEs under its direct supervision within three to five years. That is, the shareholders,not the workers, will become the decision-makers of the future state-owned or state-held corporations.

"Workers are still owners of the SOEs," Li said. "But that doesn't mean all workers will participate in all operations and decision-making of the enterprise, or they would rely on the enterprise and the nation forever."

Instead, the workers should strengthen their sense of ownershipduty and endeavor to enhance their companies' coherence, he said.

Trade unions in the SOEs should explore effective ways to achieve democratic management under the new situation, Li said.

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