Commitment of SOEs

State-owned enterprises (SOEs), backbone of the country's economy, have a particular role to play in alleviating the pressure the global financial crisis has inflicted on the country's economy.

Paid leave that China International Marine Containers Co granted to its 22,000 workers weeks ago exemplifies one of the ways SOEs can contribute to the national endeavor to ease as much as possible the impact of the unfolding financial crisis.

This company's slack season, usually between the fourth quarter and the first of the next, came much earlier this year.

Actually, it is only one of the SOEs that have run into difficulties with declining exports and domestic demand.

It goes without saying that many of them will face difficult times in the coming year. But as employment pressure becomes increasingly greater, it is important that SOEs keep their employees in jobs.

Laying off workers by SOEs will not only aggravate the already slackening job market, but also add to the possibility of social unrest, something the government and people absolutely do not want.

SOEs have always received the support of the government at different times, so they do have an obligation to do the government a favor by not putting more unemployed people under its care.

It would be unkind to lay off workers of long standing. And particular so at a time when it is difficult to land another job.

The increasing pressure from the financial crisis should be a time when the socialist nature of China's SOEs should demonstrated by always putting humanitarian considerations before economic benefits.

Even from the perspective of their future development, it would be beneficial for SOEs to keep as many workers as possible in jobs by reducing their salaries or other benefits or rotating them on reduced jobs.

Knowing how their employers have tried their best to keep them employed, workers will be more dedicated to their work. Proper guidance and publicity on workers' unity during difficult times is likely to strength corporate cohesion among employees. This will be a valuable asset toward the prosperity of enterprises in the future.

There is no need for SOEs to feel pessimistic when in difficulties so long as they commit themselves to their social responsibilities.

They could for example introduce more training programs for their employees so that they will be able to contribute more to the prosperity of their firms when the economic situation recovers.

It is always the prepared that succeed. The economic meltdown provides SOEs an opportunity to get prepared for future growth by updating their technology and getting employees better trained.

That should be one way to get through the difficult times.

(China Daily 12/16/2008 page8)