The National People's Congress inspection team on Labor Contract Law urged local governments to take more steps to make sure that problem salary payment default is solved and job cuts are avoided as much as possible.
Hua Jianmin, Vice President of the Standing Committee, reports the results of the inspection to the the sixth session of the 11th NPC Standing Committee on Dec. 25.
The report says the number of enterprises shutdown or making losses has been increasing as China's economy has faced downturn pressure since October due to the international financial crisis and world economic slowdown. New employment is reduced. Job cuts and default of salary payment are rising. Those problems have resulted to labor disputes.
The team called for effective measure to make sure that salaries are paid fully in time especially for migrant workers and labor disputes between migrant workers and their employers are dealt with properly. The default can be solved by improving the salary payment guarantee system, according to a proposal of the team.
More job opportunities are expected to be created by government investment projects and large projects in places where there are a large number of returned migrant workers, the report says.
The report also stresses that more supportive measures are needed for the development of small and medium sized enterprises to avoid a large scale bankruptcy, shutdown and job losses. Enterprises in difficulty should be encouraged to offer flexible time positions, on-job training or salary negotiation to retain jobs.
The social security system should be improved as soon as possible. Pension insurance should be transferred within a province.
According to a notice of the Ministry of the Human Resources and Social Security last month, enterprises can pay heal care insurance and work-related injury insurance at a lower ratio for a certain period of time in places which hold a large surplus of those insurance.
The statistics by the Ministry of the Human Resources and Social Security show that 93 percent of enterprises over the scale (all state-owned enterprises and non SOEs with annual sales revenue of five million yuan) have signed labor contracts with their employees by the end of September and 1.1 million collective contracts have signed in the first half of this year, up by 2.3 percentage points and 11.9 percent over the same period of last year respectively.
By People's Daily Online
http://paper.people.com.cn/rmrb/html/2008-12/26/content_164678.htm
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