Analysis Of Labor Relation Adjustment During SOE Restructuring

Since 1978, China has gradually carried out a series of reforms in governance structure of SOE, including relinquishing part of the power and profits to enterprises, replacing profit delivery by taxes, contractual management responsibility system, pilot on shareholding system, and setting up a modern enterprise system which is to transform SOE into corporation and limited company. After 1994, SOE reform has phased into a stage with the characteristics of establishing modern corporation and limited company. Therefore, the reform failed to address the long-standing problems of SOE. Irrational corporate governance structure resulted in low efficiency in operation and management. Too much insider control resulted in prevalence of over-perquisite-consumption, over-investment and losses of assets in SOE. On the other hand, despite all employees having signed labor contracts, previous ideas of SOE's employees haven't been changed radically. Since many conflicts still existed and there was no effective communication between employees and employers, labor relation adjustment became more and more difficult, and the rights of employees suffered more and more serious violation.Hence, the SOE reform has been accelerated in line with the requirements of the Fifteenth NCCPC since 2002. Sichuan Province put...