Study On The Wage Of Employee In The Private Sector

With the development of Market economy,China's widening income gap between workers become more and more concerned by the public. The low labor income is impact on domestic demand in a large extent and on China's overall economy. The previous studies on labor income within the private sector concentrated in human capital of management, particularly middle and senior , rarely depth in general workers income especially the income gap between the general workers and the manager. We define the general workers as labor. The general workers in the private sector have not the power to make decision. So they are at a disadvantage in the relationship of the company distribution and the workers only get wages. For businesses, the wages of labor is just labor costs, a part of the costs, because of the purpose of maximizing profits the business owners will certainly find ways to drive down labor costs to increase corporate profits. Low wages led to insufficient purchasing power, lack of domestic demand will also affect the sustainable development of the entire economy.We strictly defined the distribution and the private sector and then study the status of the labor wages. Generally speaking, the growth of labor wages is slow. From the private sector internal analysis, as the labor costs, the wage of workers is crowd out by profits, mainly in the deduction of paying wages to laborers, lack of workers social security and so on. From the gap between workers analysis, labor in private sector is different in industry and regional disparities. Not only the labor wages in private sector is low and the voice that employee for wages and related benefits is absent. The labor union employee for wages and related benefits is useless and it can not safeguard the lawful rights and interests of the employee. Therefore, system of collective negotiation between employee and enterprises is difficult to play a role, the collective contract between union who representative employee and the enterprise loses its meaning, let alone to implement the collective contract. For irrational relationship status of employee in the private sector, employee themselves are internal, so the employee have the maximum motivation to improve the situation of themselves ,so the best solution is enhance the competitiveness of employee and joint working. Government can regulate the macro, such as maintain the order of the labor market, adjust tax policy and Improve relevant laws and regulations and so on. As those with vested interests, enterprises have no incentive to improve the situation, so the effort of enterprises is not the focus of this section.