Small firms need govt aid to pay fair wages
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| [By Jiao Haiyang/China.org.cn] |
The data released by the National Bureau of Statistics on Tuesday shows that in 2010 the annual average wage of workers in urban private enterprises was 20,759 yuan ($3,197), while for workers at State-owned enterprises it was 37,147 yuan ($5,718).
When State employees are earning 180 percent of the average of the private sector, the salary gap is sadly obvious.
We are optimistic that the development of private economy will not only vitalize China's economy, promoting faster and better economic development, but also create more room for employment and a rise in incomes.
However, we have to admit our failure in realizing the second goal after more than 20 years of reforms.
Although the private sector has made great contributions in promoting economy development and employment, the poor incomes of its workers has become a missing plank of the society.
Some scholars believe that it is the structural problem that drives down the average wage of the private enterprises - there is a high proportion of small- and medium-size enterprises (SMEs) in the private sector.
But why can't employees of SMEs get higher salaries?
An adequate mechanism to resolve fair wages for SMEs hasn't been established yet.
Management and workers need to work out a fair negotiation system. It is management that holds the decisive power in setting wages.
On the other hand, due to bad performance and poor conditions, many private SMEs are unable to improve wages.
The labor shortage in private SMEs despite the national background of high unemployment and relatively abundant labor resources is closely related to the inadequate ability of SMEs to raise wages.
China has paid more and more attention to improving the income of workers.
The government is demanding that enterprises, especially SMEs, raise the minimum wage, increase various allowances, strengthen the implementation of wage policy and take other measures to ensure workers get a fair deal.
However, those are not decisive ways to increase workers income.
The country should do more to improve the economic performance of the SMEs.
From the macro perspective, there are too many restrictions and constraints on private enterprises, especially those SMEs, to open business, and gain social resources and capital on.
From the micro perspective, the government seldom provides preferential treatment or tax breaks to private enterprises.
Increasing the income of workers in the private sector not only needs efforts from the enterprises but also the strong support of the government.
The government should help the enterprises to get rid of bad performances and increase economic benefits, thus forming an abundant material base to boost the employees' income.
This article was frist published at Beijing Youth Daily.
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