A Research On Present Wage System Of Chinese State-owned Enterprises

A wage system belongs to a category of income distribution, and it interconnectswith production, exchange and consumption. In recent years, the wage systembecomes a widespread concern because of its close connection with vital interests ofthe masses, and becomes a focus of discussion for academic community. Presentwage system of Chinese state-owned enterprises is a theoretical problem requiring asystematic and an in-depth study. The study of the problem is an inheritance ofMarxist theory of income distribution, and a development of distribution theory ofprimary stage of Chinese socialism as well. Meanwhile, it is an important content ofmodern enterprise management system.Based on the analysis of capitalist distribution relationship, Marx advanced thetheory of distribution on basis of labor in socialist consumer goods. In socialistsociety, the distribution of consumer goods is measured by social labor provided bylaborers. In socialist society, the laborers create value; moreover, they creat surpluslabor and surplus products. The laborers should enjoy residual claim and participatein disbution of residual products because of the distribution of products on basis oflabor determined by socialist public ownership of the means of production. Marxdivided labor into simple labor and complex labor according to the complexity oflabor. The separation of ownership from managerial authority in enterprises leads tothe management of enterprises by managers. The managing labor should be paid inthe form of pay for skilled labor. The research deals with the analysis of outstandingproblems in present state-owned enterprises, such as wage formation of workers, wage gap between workers and management layer and its adjustment, and wage gapamong different industries and adjustment.The status quo of low wages of workers in current state-owned enterprisesreflects the problems in workers’ wage formation, i.e., the absence of normal wageincrease mechanism of workers, the immaturity of the collective wage consultationmechanism, and the imperfection of government’s regulation of enterprises’ wages.The author holds that the principle of distribution on basis of labor should beembodied in workers’ wage. According to Marxist distribution theory, productsshould be distributed on basis of workers’ labor contribution to value creation.Meanwhile, residual claim should be embodied in workers’ wage as well. Becauseworkers participate in the production of total social products, they have rights ofparticipation in surplus products distribution, which should not only include thedistribution of wages, but also the distribution of profits. In view of the above, thedesign model of workers’ wage formation mechanism is set up, in which the principleof distribution according to labor serves as the basis. The government implementsindirect regulation and enterprises and workers are the main parties of collective wageconsultation mechanism. Workers’ wage formation are determined by enterprises,workers and the government. The model also takes the security system of workers’interests, intra-enterprise distribution system, regulation system, and the influentialfactors of wage level into consideration. Based on the model, the measures ofimperfection of workers’ wage formation mechanism are proposed, such as formingreasonable initial distribution ratio, perfecting normal wage increase mechanism forworkers, improving collective wage consultation mechanism, and strengthening thegovernment’s regulation of state-owned enterprises’ wages.The present situation of large wage gap between workers and high executives instate-owned enterprises reflects the problems in management compensation system,such as imperfection of management compensation formation mechanism, intra- enterprise wage distribution mechanism, performance managing mechanism formanagement compensation, and the restriction mechanism the imperfection ofincentive mechanism for management compensation. The labor contribution of highexecutives to production is analyzed from the perspective of distribution on basis oflabor. In essence, the labor of high executives is a kind of complex labor. Differentfrom simple labor, the complex labor is multiplication of simple labor. Managinglabor creates much value. The high executives should participate in productdistribution according to their labor contribution. The high executives pay more costsfor education, experiences and managing talents than workers. However, the costs areonly expenses for increasing labor contribution and their transformation intoincreased performance needs the recognition of market. Only through marketrecognition can the value created by managing labor be embodied in valuedistribution. High managing compensation is not necessarily guaranteed by theexpenses of education and managing experiences. Managing compensation should bea reward for labor contribution by high executives. The reasonable wage gap betweenhigh executives and workers should be redetermined according to the principle ofdistribution on basis of labor. The wage gap should reflect reasonable laborcontribution difference, and embody fairness of distribution on basis of labor in wageacquisition. Accordingly, a framework of managing labor value added is set up toreflect the managing performance of high executives, in which the managing laborvalue added is defined as the difference between managing labor returns and basicsalary for managing positions. The positive value of managing labor value addedmeans market recognition of labor contribution of high executives and realization ofmanaging labor returns. A design model of management compensation system is setup on the basis of the framework, in which basic salary, or basic salary for managingposition, embodies salary security mechanism; performance pay, or managing laborreturns, reflects salary incentive mechanism; and reasonable restriction to salary, or reasonable restriction to managing labor returns embodies salary restrictionmechanism. The performance pay should be distributed according to high executives’contribution to the performance of enterprises. The performance of enterprises shouldbe measured by economic value added. Based on the above analysis, the measures ofleveling large wage gap between workers and high executives are proposed from theaspects of decisive body of management compensation, classified management ofstate-owned enterprises, intra-enterprise distribution, performance appraisal of highexecutives, restriction and incentive mechanisms of management compensation.The reasons for the generation and widening of the large wage gap amongworkers in state-owned enterprises of different industries are determined by bothmicrocosmic and macro factors. Microcosmic factors are the major causes for thegeneration and widening of wage gap. Macro factors are system environment of thewage gap generation. The wage gap among different industries is determined bymicrocosmic factors such as market structure and education level of workers, and bymacro factors such as the mode of economic development, distribution mechanismand labor market as well. A model of transmission mechasim for influential factors ofwage gap among different industries is set up. Transmission direction andmechanism for all the influential factors of wage gap among industries are analyzed.The mode of economic development is the most important macro factor influencingwage gap among different industries. The mode of ecnomic development entailsdistribution mechanism. The transformation of economic development modenecessarily requires transformation of distribution mechanism, which is embodied inthe increase of workers’ wage in the distribution mechanism. The transformation ofdistribution mechanism has an effect on labor market and calls for breaking theoriginal segmentation of labor market and formation of unified labor market to realizefast changes in different industries and regions for holding newly-created positions.The formation of unified labor markets of state-owned enterprises calls for elimination of industrial monopoly of labor employment, especially elimination oflabor market monopoly of state-owned enterprises in monopolistic industries. Seenfrom the microcosmic factors, the main reason for wage gap among differentindustries lies in productivity difference among different industries. The growth rateof wage is higher in industries with increased capital concentration. In order toincrease productivity in different industries, apart from increasing capitalconcentration, main focus should be on incresing education level of work force. Theincrease of education level of work force adapts to the requirement for labor qualityfrom transformation of economic development mode, and influences the developmentmode transformation conversely. Based on the above analysis, measures of levelinglarge wage gap among different industries are proposed from the aspects of enhancingeducation level of work force, introducing competition in monopolistic industries, thetransformation of economic development mode, the rationalization of wagedistribution mechanism, and constructing unified labor markets.The root cause of problems in wage system of state-owned enterprises lies in theabsence of wage legislation. Policy suggestions concerning guaranteeing normalwage increase of workers, adjusting wage gap between workers and high executives,and adjusting wage gap among different industries are proposed from the perspectiveof wage legislation.