The incomes of workers in China's monopoly sectors like the
telecoms, finance and tobacco industries are now three times the
national average while non-wage benefits given to workers in these
sectors increased the gap with the national average by a much as 10
times.
"Income is now deviating away from the actual contribution made
by staff in the monopoly sectors," said Bu Zhengfa, vice minister
of Labor and Social Security at a recent forum on salary
management.
Bu cited an example of a worker in a civic electric power
company. His monthly salary approached 6,000 yuan (approx. US$750)
but his annual income could be as much as 150,000 yuan (US$18,750)
with bonuses, allowances and housing benefits. This led to a salary
10 times the national average.
The high salaries paid to employees in these industries -- in
the main they are state-owned -- had become the most significant
problem of China's income distribution system, Bu acknowledged.
Interviews by People's Daily at two leading universities
in Shanghai showed that many of their graduates were eager to work
in the tobacco, telecom and petroleum sectors no matter what
positions they might be offered.
"With a guaranteed high salary and job security I feel confident
about these monopoly sectors," a university graduate surnamed Wang
is quoted as saying and who’d just signed a contract of employment
with a telecoms firm. Initially Wang expects to earn 4,000 yuan
(about US$500) a month.??
"Lack of strict regulations constitutes the major cause for
monopoly firms to enjoy excess profits," said Prof. Wang Zeke, with
elite Zhongshan (Dr. Sun Yates-sen) University in Guangzhou. He
suggested the government step up the pace to do away with
monopolies and take measures to restrict their profits. ?
In China the government stopped levying profits from state-owned
firms in 1992 to encourage their development. With preferential
policies and their right to use state-owned assets most increased
their monopoly status in their respective sectors and have enjoyed
ever higher profits as a result. ?
The central government has started to take measures to control
salaries in these monopolies. Some telecom and financial companies
have even been urged to keep a tight reign on the salaries of their
employees.
Su Hainan, director of the salary research department with Labor
and Social Security Ministry, said relevant ministries are
considering collecting more taxes from state-owned firms which hold
large state-owned assets.
(Xinhua News Agency June 6, 2006)