Nine major Shanghai-based state-owned companies, including Shanghai Automotive Industry Corp (Group), have announced measures such as cutting executives' salaries in the face of a financial crisis.
"Executives should share joys and sorrows with workers. If a worker's salary cannot be increased, neither could that of an executive, and if a worker's salary has to be reduced, leaders should cut theirs first," said a statement by Shanghai's State-owned Assets Supervision and Administration Commission over the weekend.
Most of the companies will slash executive payments by 15 to 20 percent.
The nine also include Shanghai Electric Group, Bailian Group, Orient International (Holding) Co, SVA Group, Chinalco Shanghai Copper Co, Jin Jiang International (Group) Co, Shanghai International Port (Group) Co and Shangtex Holding (Group) Corp.
The firms also agreed to cut expenditure for business trips and conferences, as well as the construction of new buildings, the commission's statement said.
Bailian, a leading retailer, has required employees to use trains instead of flying as far as possible for domestic business trips. It has also curbed overseas business travel or training programs, and it won't hold company conferences out of downtown Shanghai this year, the statement said.
Shanghai Electric will stop purchasing new cars this year while Shanghai Automotive plans to cut this year's budget for "reception fee," such as gift purchases, by 20 percent from last year's level, it said.
Such announcements are frequent among big Chinese firms as a result of the economic downturn.
Aluminum Corp Of China, the country's largest aluminum producer, said early last month it would slash payrolls of senior managers by up to 50 percent. To avoid cutting staff, it planned to trim workers' wages by 15 percent.
Lenovo Group, China's leading computer maker, has said it would cut the pay of top executives by 30 to 50 percent. Wuhan Iron and Steel Group also cut salaries of senior managers by 50 percent.
Top executives of China Eastern Airlines, one of three major carriers in the nation, will receive 10 to 30 percent less in their monthly pay starting yesterday.
(Shanghai Daily February 2, 2009)
