The widening income gap among different sectors and regions has
prompted China's State assets watchdog to order a probe into the
salary growth of employees of State-owned enterprises (SOEs).
According to a notice posted on the website of the Assets
Supervision and Administration Commission yesterday, the
investigation will mainly cover the average income level and salary
increases of employees with SOEs at the central, provincial and
municipal levels between 2004 and 2006.
A report on income comparisons between SOE employees and local
residents has also been ordered.
The notice also requires an analysis on the low salary increases
of some SOE employees and suggestions on building a "normal salary
increase mechanism" for all SOE employees.
The notice comes at a time when the widening income gap between
industries and regions has drawn strong criticism in China, where
the gini coefficient, the leading measure of inequality, now stands
at 0.46, exceeding the internationally-recognized level of
0.45.
The gap between SOE employees, especially those with monopoly
industries, and employees with non-State sectors has also sparked
criticism.
The salaries of SOE employees surpassed those in other sectors
for a number of years between 1990 and 2005.
In 2003, SOE employees were the highest salary earners,
according to a report published by the National Development and
Reform Commission (NDRC) in February.
Meanwhile, the real incomes of people working in the
electricity, telecommunications, finance, insurance, water and
tobacco sectors are five to 10 times higher than those in other
industries.
According to Su Hainan, an expert on salary trends with the
China Association for Labor Studies, the reason behind the
rocketing salary increases of SOE employees is that they are in a
position of advantage in the distribution of resources.
To address the issue, the NDRC, the country's top planning body,
has in collaboration with other central government departments,
worked out a plan to push forward the reform of income
distribution, but there is no timetable for its release.
The government has adopted a series of measures to tackle this
problem, like putting more money into the countryside and launching
its "go west" strategy to support the country's western provinces,
which lag far behind the coastal areas.
(China Daily May 15, 2007)