Research On Realization Of Labor Value In Private Enterprises

Based on the theory and literature review, author applies Marxist labor value theory to research on realization of employee's labor value in private enterprises.In chapter I, based on theory and literature review, author lists basic elements of contemporary Chinese labor value. By combining the basic elements with three states of labor reproduction, I define three states of realization degree of labor value, the states as followed:Firstly, if worker's income could support their families and themselves, accumulate sufficient compensation for employment insurance, medical insurance, work injury insurance and endowment insurance, education and training expenditures, such state of labor reproduction is simple reproduction. Such realization degree of labor value is defined as"Basic realization of labor value"; Secondly, beside the expenditures mentioned above, if worker's income includes the compensation for new labor value emerged in the process of study and training, such state of labor reproduction is expand reproduction. Such realization degree of labor value is defined as"higher realization of labor value"; Thirdly, if worker's income could only raise their families and themselves, education and training expenditure, various social insurance and security costs couldn't been met, such state of labor reproduction is shrinking reproduction. Such realization degree of labor value is defined as"lower realization of labor value".In chapter II, on the base of lots of data and facts, this study judges that Chinese employee's labor value in private enterprises is in the state of Lower realization of labor value. This judgment is made from the perspective of wages level, arrears and deduction of wage and social insurance coverage respectively. Such Lower realization state leads to shrinking labor reproduction: harming employee's health by extending working hours indirectly and lowering living standard directly; reducing occupational training time by extending working hours indirectly; reducing training expenditure; occupying some of realized labor value indirectly; Lowering quality of future labor force.In chapter III, the author analyzes reasons for lower realization of labor value in private enterprises from the perspective of employee's income level, distribution of private industry, gap between region's economy and employee's income, supply and demand of labor market, employer, employee, government and union respectively.The issue of lower realization of labor value in private enterprises happened on the background of general low income of employee. The private enterprises in our country are mainly distributed in eight traditional manufacturing industry and the retail food service industry, these industries have always been labor-intensive, low-technology and low-income ones, meanwhile, high level of economic development and employee's income in eastern region also enlarged marginal effect of employee's income in some low-income areas of central and western region.Employee in private enterprises is at the primary labor market. Because of the market differences caused by dual socio-economic structure, rural labor was unfairly treated as main labor supplier. The contract mechanism which can protect rights of employee in balanced labor market plays a limited role in our country. The state of oversupply makes workers'wage lower than their labor value.Compared with employee, private employer has absolute superiority in the possession of economic and political resources, social and cultural resources, but they have inherent deficiencies. In contemporary, Chinese private enterprises are in the process of transformation from planned economy to marketing economy, from illegal existence to acquiescence, and then encourage and support by politics and government, and their private property right needs go through a process of gradual solidity. This means that the living environment of private enterprises also has a process of gradual improvement. In the early development of the private economy, on policy, private enterprises are at disadvantage status compared to state-owned enterprises and foreign enterprises; on property rights protection, access to production factors and market access, private enterprises have a disadvantage compared to state-owned enterprises and foreign enterprises; on competitiveness, their small capital size, low technology level and poor production factors can't compete with state-owned enterprises and foreign enterprises.Therefore, compared to "Strong capital, weak labor", labor relations of Chinese private enterprises is "absolutely strong government, relatively poor capital and absolute weak labor". Such situation leads to problems as followed and affects the realization of labor value: because of part transformation of government function, private employers have higher transaction costs with government; to ensure profit margins that employers wanted, employer lower labor costs, shift some loss to employee.Chinese employees are in the process of transformation from planned economy to marketing economy. Urban employees have not established the awareness of labor rights and the ability of protecting labor rights matched with marketing economy, under dual socio-economic structure, deprived of rights of flowing freely, under the circumstances of relative landless and relative surplus labor, rural labor move from agriculture civilization with widespread poverty to industrial civilization. They had to lower their income requirements and exchange for the rights of freedom movement and employment in the city with some of their economic rights. This makes labor value hard to realize.Some local governments develop private economy, they pursue growth of macroeconomic indicators such as "GDP", employment, exports and imports, tax and so on. In this process, they don't pay enough attention to issues about realization of labor value, such as wages and insurance.Coming from the planned economy with characteristic of the state, enterprises and employees is of the same interests, union should face the new phenomena of that employee's interests are different from employer's in marketing economy. For the union, it should take some time to play a role in protecting employee's interests and rights. The government, employees and union should explore new cooperation model about employee protection mechanism.In chapter IV, the author introduces the positive impact on sustainable development of economy if realization degree of labor value is improved from the perspectives of promoting a harmonious society, increase energy for developing micro-economic, improving economic structure of"insufficient domestic demand-low price export trade patterns-low-end manufacturing gathered -- slow growth of employee's income-insufficient domestic demand", accelerating connecting speed of industrial, employment and labor structure, improving process of urbanization.According to data, labor dispute is in a state of increasing from the perspectives of total number, number of related employees, number of collective dispute and related employees. The labor disputes are mainly caused by violation of employee's compensation and insurance. According to national data and data in 12 provinces of total amount of employee's income, average wage and number of labor dispute and, author uses empirical research method to prove that low realization of labor value is important reason for increasing labor dispute, we also get further proof that increasing realization degree of labor value can decrease number of labor dispute, reduce social risk and promote realization of harmonious society/Increasing the realization degree of labor value in private enterprises may increase development energy of micro-economic. Enterprise is the foundation of micro-economic in our country and sustainable competitiveness of enterprise is the foundation of sustainable development for our country. Acquisition of sustainable competitiveness must rely on the sustainable development of elements. Meanwhile, employee's skill has close connection with enterprise's sustainable competitiveness. Employee's skill can get development from dimensions of width, depth and unconventional, exclusive, degree of complementarity. Development of employee's skill will make contribution to enterprise's sustainable competitiveness. And the development of employee's skill depends on realization degree of labor value. Besides this, sufficient economic strength and leisure time are essential conditions. Increasing realization degree of labor value in private enterprises may improve economic structure balance of our country. Economic development is trapped in vicious circle:"insufficient domestic demand -- low prices export -- low-end manufacturing gathered– employee's slow income growth -- insufficient domestic demand". The key reason for this vicious circle is lower realization degree of labor value.Increasing domestic demand needs increasing worker's income. As a part of workers, employees in private enterprises have low income and insurance, even no insurance. Therefore, they spend quite a large proportion for savings to increase self-protection capability for sudden incidents such as diseases and unemployment. This approach seriously inhibits their growth in consumer demand.Increasing realization degree of labor value may improve our manufacturing industries'location in global chain, reduce dependence on low prices export, improve export structure, ease trade friction, create good international image and create favorable external environment for our development.Increasing realization degree of labor value may accelerate connecting speed of industrial, employment and labor structure. Upgrading industry structure is connected with employment structure, and upgrading employment structure is connected with labor structure. Upgrading labor structure on micro level is the improvement of employee's quality, knowledge and structure. Sufficient income is the most basic condition for the improvement mentioned above.Increasing realization degree of labor value may speed up urbanization process. At least, two indicators included in the process are expansion of urban areas and increased number of urban residents. The private employer employs a large number of rural employees, and their realization degree of labor value has close relation with the two indicators mentioned above. If their labor values are always at lower realization level, there are two results in urbanization at least: extending the duration of "triple economic and social structure," and slowing down the speed of transformation from "triple groups" to urban citizens. In chapter V, the author introduces establishing and improving comprehensive dynamic mechanism for realization of labor value. Solving the realization of labor value is a system project, and the solution needs a serial of mechanisms to support, such as "Contract protection mechanism", "employee self-protection mechanism", "collective protection mechanism","government protection mechanism". Only using the four mechanisms together can solve the problem to some extent.Contract protection mechanism. International labor standards and the ILC, State Labor Standards, collective contract, labor contracts and job specification are all leases. These contracts can define employee's rights, reduce the rights of workers in the public domain and increase realization degree of labor value. These contracts play roles at different levels and they consist of contract protection mechanism for realization of labor value.Employee self-protection mechanism is complex. It mainly includes information search mechanism, automatic quality adjustment mechanism, informal organizations protection mechanism, enterprise's dedicated asset protection mechanism, withdrawal protection mechanism.Union's collective protection mechanism. Union is a basic marketing economy system. The existence of union has two reasons: for relationship among employees, union supply public goods as a organizational form; for relationship between employee and employer, union can make up for deficiencies between employee's and employer's energy. After defining rights, union can protect employee's rights.Union depends on a serial of mechanisms to improve realization of labor value. For different targets, scope and purpose, these mechanisms operate at three levels of employer, union members, government and society. Union applies"tort risk prevention mechanism","collective voice mechanism"and"punishment mechanism"to employer; union applies"the supply of public goods directly and indirectly increase mechanism"and"social capital adjustment mechanism"to union members; applies"participatory and convince mechanisms"to government and society. By participation and influence government policy making and legislation, union gets community support and favorable external environment. According to data, we know that both in private enterprises of our country and western enterprises, union plays positive role in increasing employee's income, compensation, insurance and working conditions. Besides increasing the realization degree of labor value, union promotes expansion of labor-management cooperation and improves social fairness. These developments are good for marketing economy.Government protection mechanisms include tripartite consultation mechanism, labor legislation mechanism, labor dispute settlement mechanism, labor supervision and inspection mechanism and social ideology guiding mechanism.In the end, author gets the conclusions and suggests: Government protection mechanism is important for labor value realization in private enterprises. Taking this mechanism as core part, we should establish and improve comprehensive dynamic protection mechanism for increasing realization degree of labor value in private enterprises.