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Aim of reform must be to cut top officials' pay

China Daily | Updated: 2009-11-10 09:06

An official of the State-owned Assets Supervision and Administration Commission of the State Council (ASCSC) said last week that the administration had started issuing a regulation on the salary budgets of 50 central enterprises. But to ensure that the reform is implemented properly, ASCSC should reduce senior officials' powers and protect ordinary employees' rights, says an article in Qilu Evening News. Excerpts:

ASCSC launched its pilot for the wage reform program last April that covered central enterprises in metallurgy, power, petroleum and civil aviation sectors. Now, the government has another 50 enterprises under the purview of the reform program.

But for a real reform, the government should focus on curbing high-ranking officials' salaries. The aim of the reform, in short, is to reduce senior managers' powers and protect ordinary employees' rights.

First, the government should end the monopoly status of central enterprises. Since more than 50 percent of the central enterprises regulated by ASCSC are monopolies, high-ranking officials will not take a salary cut unless their companies' status is changed.

Second, since most of the senior managers in central enterprises come from a governmental background, they use their political power to earn a good salary. Hence, these people's power should not be allowed to extend to business management.

Third, average employees should be given more rights so that the income is distributed more justifiably.

(China Daily 11/10/2009 page9)

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