Wages stagnated despite labor shortage: report

09:56, May 25, 2010      

Email | Print | Subscribe | Comments | Forum 

Wages have not risen in China despite a shortage of workers, a report in Outlook magazine said.

The magazine said manpower costs only represents between 10 and 15 percent of some enterprises' total expenses, according to Ren Zhaocheng, the head of a workers union in Jiangsu Province.

The report said the minimum wage in some cities was not adjusted as often as the law requires.

For example, there was no minimum wage adjustment in Guangzhou, Guangdong Province, between January 1999 and January 2003, even though regulation stipulates that an adjustment should be made once every two years. An adjustment made in December 2004 only lead to an increase of just 59 yuan after deductions.

The report said the minimum wages in 31 cities are still lower than the national standard.

Even if enterprises increased wages, workers would not see a big difference since they need to contribute to their pension and various kinds of insurance.

Su Hainan, head of the wages studies institute under the Ministry of Human Resources and Social Security, told the magazine that workers get about 40 percent of their wages after contributions.

Lü Qian, a Japanese teacher in Beijing, earns about 4,000 yuan ($585) a month. But she was not left with much money after tax, pension and insurance deductions.

"I always feel that my hard working efforts are in vain," she was quoted as saying.

The report said that changing jobs would not help workers much because remuneration packages offered by different companies are similar.

It attributed the reason behind low wages to unhealthy development of some industries. Some local governments are responsible for the problem. For example, the pay offered by some governments to clean streets is too low so bidders can only offer so much.

The magazine, citing academics and experts, said enterprises should negotiate wages with employees, and the negotiation should be protected legally.

Yang Yiyong, the director of the Institute of Social Development under the National Development and Reform Commission, said authorities should lay out concrete objectives for achieving equality in income distribution, and specify the objectives in the national five-year development plan.

Su said some labor-intensive industries should be given tax concessions, which allows enterprises to lower their financial burden and possibly encourage them to increase wages.

Source: Globaltimes.cn - Agencies

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • An Indian artist colours clay idols of Goddess Durga for the upcoming Durga Puja festival in Calcutta, capital of eastern Indian state West Bengal on Sept. 27, 2011. The festival celebrates the homecoming of Mother Goddess Durga and the victory of good over evil, dramatized by the goddess' demolition of the evil buffalo demon, Mahishasura. (Xinhua/Tumpa Mondal)
  • A model presents a creation of new upcoming designer Sergei Grinko at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. The Milan fashion week closed on Tuesday. (Xinhua/Wang Qingqin)
  • Yu Guangyao (2nd R), president of Shanghai Shentong Metro Co., Ltd, bows his apology at a press conference on the subway trains collision accident happened Tuesday afternoon, in east China's Shanghai Municipality, Sept. 27, 2011. By 8:30 p.m. (1230 GMT) Tuesday, a total of 271 injured people in the accident have received medical treatment in hospitals, among them 180 have been dispatched. Other 61 injured people are still in hospital, in which 30 are under emergency observations. No critical injuries have been reported. (Xinhua/Chen Fei)
  • Children visit the Confucian temple in Tainan, southeast China's Taiwan, Sept. 27, 2011. A ceremony will be held at the temple to commemorate Confucius (551-479 BC) on Sept. 28, the birthday of the ancient Chinese thinker and educationist and the annual Teacher's Day of Taiwan in honor of him. (Xinhua/Ren Zhenglai)
  • Fourth-grader Ma Lianghai (left) and third-grader Ma Linxiang are engrossed in their work during art class at Zhaojia Elementary School in Dongxiang, Gansu province, on Sept 18. (Photo by Xu Jingxing/China Daily)
Hot Forum Discussion