Research On The Subject Status Of Labor In The Reform Of Chinese State-owned Enterprise

The owner in production materials ownership is the one in the enterprise.The Subject is a special entity with people’s will and interests.Relative to the object,the subject is objective、practical、cooperative and independent.That the essence of People is social relationship decides people must be in a certain organization.The rights are the basis and resort of resource allocation.The social status ensures the subject obtains more and better resources from the organization to maintain and consolidate their existing status.Enterprises are the basic production organization in modern society.According to Marx’s historical materialist perspective,companies are neither ‘black box’ in classical economics nor the equality contract in new institutional economics represented by Coase,but a carrier of productivity and production relationship.The nature of enterprise is determined by the production materials ownership,while the owner in production materials ownership is the one in the enterprise.So that workers must be the owner in production materials ownership if they try to be dominator in the enterprise.Public Ownership,which fundamentally guarantees the main status of worker consortium in the production materials ownership,determines the main status of workers in the enterprise.But What is the relationship between the individual and the worker consortium? In order to clarify it,Reconstruction of Personal Ownership is used to illustrate the nature of Public Ownership,which is an ownership by individual workers,with joint possession by the consortium.So that,it is safe to say workers is in the principal status in the enterprise.Reconstructing Personal Ownership and Public Ownership are essentially the same,but the focus is different for each one.The former implies developmental relationship from the personal ownership of the workers in the perspective of history,and emphasizes final personal ownership on the production materials,while the latter emphasizes the joint possession to production materials.It is not to rebuild personal ownership of living materials but production materials;the personal ownership not based on individual,but based on joint possession;forms not only in developed socialist stages,but in the whole socialist phase.The realization for the principal status of workers in China’s state-owned enterprises is as follow.The workers across China with the final ownership are in the main status in the state-owned enterprises,while workers employed by state-owned enterprises are in the main status,directly dominating the state-owned capital.The worker consortium is a general implementation for Reconstruction of Personal Ownership.Specific forms taken by the consortium are determined by the specific national conditions such as local productivity levels or development requirements.Based on China’s national conditions,the State should act as a special form for the consortium.Under the socialist market economy system,the state will authorize some power to the enterprise,but workers still have the final ownership and does not loss the main status.The realization mechanism of the main status of the worker should be: Firstly,the workers in the whole society restrain the worker consortium not through an individual but through the worker representative.The laborer representative commissions a state-owned government regulatory authority to perform as an investor;Secondly,the workers employed by the state-owned enterprises send representatives participate in corporate governance.Finally,workers representative can set up a consultative agency with representatives of state-owned workers.Market-oriented reform has made state-owned enterprises more efficient,competitive,value-added and optimized in structure,but status of workers is somehow weakened.First,that the laborers are lost in the governance,makes it difficult to form an effective Property Rights.That the government directly entrusts state-owned capital regulatory agency makes government difficult to differ from state-owned capital.The government with managers conspires to possess state-owned assets.Low-profit from state-owned enterprises to government doesn’t fully meet requirements of ownership.State-owned capital revenue used for the public education is not reasonable in the scale and structure,affecting forming labor ability.Second,because of employees absent in corporate governance,it is difficult to form a valid balance of governance structure reflected as follows.Employees do not have rights to recommend manager candidate;the director of employee does not play a decision-making role;the employee supervisor difficult to maintain employee rights does not play a supervisory role;Labor union leader through administrative appointment hardly represent employee’s interests.The third issue is income distribution: the income gap between ordinary workers and senior managers is wider than before,which is harmful to the harmonious labor relationship;The ESOP still not normal cannot help employee effectively increase revenues.The fourth is that the workers have not been free to compete with each other: social security system still incomplete,block workers migrating across the country;management in administrative ways in state-owned enterprises inhibit promoting for workers within enterprise.The fifth is the conflict between workers and employees in state-owned enterprises.Reasons of issues mentioned above are as follows.The conception of the worker’s final ownership for enterprise is ignored;the rights of ownership cannot be protected in system;the state-owned enterprise employee representative assembly system is still imperfect;all workers and employees in state-owned enterprises have no coordination mechanisms.Measures in the protection of laborer ’s rights and interests taken by companies in typical country are meaningful to us.The system of ESOP in American companies tells us attaching great importance to the system;basing on the public ownership;improving the laws and regulations of employee shareholding and enhancing support in policy.System of jointly regulating by workers and capitalist in German implies us participating in corporate governance by employees;negotiating collectively by workers;providing protection by laws and basing on public ownership.System of autonomy by employees in enterprises in Yugoslavia implies us deepening the marketization reform of state-owned enterprises;enhancing the macro-control and balancing interests between partial owners and overall owners.In order to protect the main status and rights for workers,we must deepen reforming state-owned enterprises: First,all workers directly entrust the State-owned Assets Supervision and Administration Commission as a state-owned property rights agent by the People’s Congress of the People’s Congress.Based on this,the State-owned Assets Supervision and Administration Commission entrusts the national-funded company investing.Second issue is the restriction and supervision of state-owned employees on the ownership of state-owned enterprises: the employee representative commission acts as an ownership agent of employees;the employee representatives elected by the commission participate in corporate governance.Finally,all workers negotiate with employee in state-owned companies under the corporate governance framework.The following strategies should be taken: First,make the correct concept that workers are the subject in state-owned enterprises.To protect the principal status of all workers,we should improve the system of the people’s congress,the state-owned capital authorized business system to implement the duties of the investor;the managers market to ensure managers qualified,the national capital income budget system to ensure the opportunity of workers’ ability development.To ensure the main status of employees in state-owned enterprises,we should improve the system of employee representative assembly to ensure the "employee representative" truly represent employee;improve the system of employee director and employee supervisor to ensure the rights to know,decision-making,supervising;improve the labor market to arrange work according to one’s abilities and improve the employee share-holding system to ensure employee share the surplus.To balance the interests,both parties should consult equally,share information and implement the strategies of "unanimous agree".