OPINION> Commentary
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OPINION> Commentary
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Fight it together
(China Daily)
Updated: 2009-02-03 07:57 Complex problems rarely have easy solutions, but holistic approaches to them are the best bet. Tackling mounting unemployment is a case in point. It is reassuring that some useful suggestions on dealing with the problem have now come from the labor and social security authorities, the All-China Federation of Trade Unions and the Chinese Enterprise Confederation/China Enterprise Directors Association. The timing of the suggestions too is significant. Coming on the first working day of the Year of the Ox, they call upon the government, enterprises and trade unions to work together to see the country through the darkest hours of the economy. Concrete measures that will ensure effective collaboration among the three parties at all levels should follow closely in order to stabilize labor relations and avoid social conflicts.
As Premier Wen Jiabao said earlier, this year's employment situation is very grave. The economic downturn is estimated to have shut down about 670,000 businesses and shed 6.7 million jobs last year. Labor disputes and protests too surged. More rounds of layoffs are in the pipeline as the economy shows no sign of recovery. The slowdown of the Chinese economy is to be attributed largely to the country's over-reliance on exports and domestic spending is believed to be the cure. However, the widening uncertainty over jobs is expected to prompt consumers to tighten their purse strings, starting a vicious cycle which will push an economic recovery even farther out of reach. Stabilizing the job situation requires collaboration from all parties in the labor relations. The labor and social security departments must effectively carry out policies to create more jobs and ease the enterprises' burdens. The government's directive issued on Sunday to step up vocational training for migrant workers, college graduates and jobless workers is a practical step to help them make better use of their time by sharpening job skills. Enterprises now have more social responsibilities on their shoulders. Rather than focusing exclusively on cutting labor cost, they need to be very careful about laying people off and instead seek alternative solutions. An improvement in management skills and technological innovations is also necessary to cushion the impact of the global crisis. Meanwhile, employees' legitimate rights must be protected. Measures such as reduction in work hours and salaries in return for keeping more people at work cannot be implemented smoothly without consultations with employees and their understanding and cooperation. And strict management of wage deposit accounts is necessary to ensure employers pay workers in time. This said, the guidelines are unlikely to be worked out in practice without fiscal policies in place. Changes in taxation, which could greatly facilitate the government's economic stimuli, are yet to be brought in. Much has been said about the responsibilities enterprises should shoulder and the sacrifice employees should make in such a difficult time. However, a cut in income tax is crucial to alleviate the burden of companies so that they can have more leverage to maintain better labor relations. For employees who suffer wage cuts, the tax threshold should also be raised accordingly. The interim taxation policies can be replaced once the economy walks out of the doldrums, but they need to be put in place to meet the immediate challenges. (China Daily 02/03/2009 page4) |
