It is trade unions, not the government, which should play an active role in pushing for workers' pay rises, says an article in the Beijing News. An excerpt follows:

It is reported that the local government in Nanjing, capital city of East China's Jiangsu Province, recently issued a directive urging enterprises that have turned profits for three consecutive years but not increased salaries to raise their workers' wages as soon as possible.

Of course successful companies are obliged to share the spoils with staff by increasing their salaries.

However, the Nanjing municipal government seems to have overstepped the mark, though its intention was good to guarantee workers' rights.

In a market economy, the government can take two measures to safeguard workers' economic interests. One is to introduce a minimum salary standard and the other is to supervise enterprises' payment distribution.

In many places the minimum wage standard is not properly observed and many enterprises often delay payment. Many incidences of these violations are not punished, showing some local governments are not serious about carrying out their duties.

As for increasing salaries, the government should let the market decide.

Enterprises, in order to attract and retain talent, will work out a sensible pay scale. Workers, if not satisfied with their salaries, can bargain or simply choose to quit. Thus a balance should be found.

But compared to a powerful company, a single worker is at a disadvantage when negotiating with his or her employer. Trade unions should negotiate on behalf of their members.

The Nanjing municipal government is usurping the role trade unions should be playing. The role should be handed back as soon as possible.

(China Daily August 19, 2005)