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Stop cutting workers' salaries arbitrarily

China Daily | Updated: 2009-11-06 08:36

The authorities should stop enterprises from cutting employees' pay arbitrarily by using the global economic crisis as an excuse, says an article in Yanzhao Metropolis Daily. Excerpt:

A survey conducted by Guangzhou social conditions and public opinions research center shows that enterprises have cut employees' wages rampantly during the ongoing global economic crisis. It is surprising to see that more than 40 percent of the State-owned and State-holding enterprises have either cut their employees' pay or are planning to do so.

The global financial crisis has indeed impacted China's domestic enterprises. To some extent, an enterprise that has suffered severely may be justified in reducing some employees' pay.

But some people have alleged that many enterprises may be using the financial crisis as a pretext to cut the salaries of their staff.

Many netizens have said that some companies have laid off workers or broken their contracts with employees, citing the financial crisis as an excuse.

The worst victims of the global financial crisis are the small- and medium-sized enterprises (SMEs). Quite a few SMEs have even gone out of business.

But the survey shows State-owned and State-holding enterprises top the list of employers that have resorted to pay cuts, sparking a public debate.

Many SOEs are monopolies, and thus have not suffered much because of the financial crisis.

In fact, some of them have even made more profit because of the government's economic stimulus package. Hence, such enterprises have no justification in cutting their employees' wages.

Admittedly, pay cuts and layoffs in some enterprises may be unavoidable. But such enterprises should not make all the employees suffer by using the financial crisis as a ruse.

The authorities should take steps to stop such irresponsible and illegal practices of the enterprises.

(China Daily 11/06/2009 page9)

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