| The employees of state-owned enterprise participating company management is one of the key contents of company operation.By analyzing the historical development,theoretical basis,existing issues and proposed measures about management improvement etc.regarding employees of state-owned enterprise participating company management,it would play an important role in promoting the level of employees of state-owned enterprise participating company management and improving the vitality and competitiveness.In state-owned enterprises,employees participating company management is the historical continuity of democratic management system of state-owned enterprise since the establishment of the nation.As of today since the implementation of PRC Company Law from 1994,employees participating enterprise democratic management is the important content of participating company management,which is also the continuity of enterprise democratic management way.In China,employees’ participation in corporate governance in state-owned enterprises includes three historical stages with distinct characteristics.The first stage was from the founding of the PRC in 1949 to China’s reform and opening-up.The main content of this stage could be summarized as "two participations,one reformation and three integrations".Emphasizing the enthusiasm of employees was the mainstream of employees’ participation in corporate management during this stage.The second stage was from China’s reform and opening-up to the implementation of the "Company Law".The main content of this stage was the employee representative assembly system,and the scope of employees’ rights to participate in the democratic management in enterprises was protected legally.The third stage is since the implementation of the "Company Law" until now.The mode of the corporate governance comprising of the shareholders’ meeting,board of directors,and board of supervisors(the new three committees)continues to play a role.At the same time,the party committee,the workers’ congress,and the labor union(the old three committees)continue to play their original role and their influences are different in different periods.Although the modes of employees’ participation in corporate governance in state-owned enterprises are different in different periods,the theoretical basis is the same.There are generally four types of theoretical foundations.The first is the theory of people’s democracy,which is defined in the Constitution through the stipulated nature of the country and the basic status of the people as masters of the country.From the Common Program of the Chinese People’s Political Consultative Conference in September 1949 to the Constitution of the PRC,it was clearly demonstrated that all power in the PRC belongs to the people.At the same time,the Constitution clearly stipulates that the cause of socialism must rely on workers,farmers,and intellectuals.The people are the masters of the country,and it is specifically stipulated that democratic management should be implemented in state-owned enterprises.The second is the theory of ownership by the whole people.The ownership by the whole people was stipulated in the Constitution and the newly adopted Civil Code of the PRC in 2020.It is clear that the public ownership of the production means is the objective basis for the existence of China’s socialist system.Employees are both the employees of enterprises and the owners of the country and enterprises.Democratic management of state-owned enterprises is the basic right of workers.The third is the theory of power balance.The theory was first universally recognized and applied in western countries,and was gradually cited by Chinese academic circles.The theory of power balance is an effective supplement to the democratic centralism.The realization of power balance in the company’s internal governance plays an important role in preventing abuse or corruption caused by the over-concentration of power.The employees’ participation in corporate governance is to play a role in power balance.The fourth is stakeholder theory,the company’s stakeholders,including employees,customers,suppliers,governments,communities,etc.,are closely related to the interests of the company,and employees are one of the most important stakeholders besides stockholders.As a stakeholder,employees should have the right to participate in corporate governance,enabling the company to make decisions more scientifically and rationally.There are four modes for employees of state-owned enterprises to participate in corporate governance.The first is that employees participate in the board of directors and the board of supervisors,which is the way employees participate in corporate governance,and is also the core content and important mode of employee participation in corporate governance in the sense of the "Company Law".The second is that employees participate in corporate governance through the workers’ congress.The legislative foundation of the workers’ congress is the "Regulations on the Workers’ Congress of Industrial Enterprises Owned by the People" promulgated by the State Council.The workers’ congress has broad powers in participating in corporate decision-making and has distinctive Chinese characteristics.The third is that employees participate in corporate governance through labor unions.In China,labor unions are the working organs of enterprise employee congresses and carry out their work independently in accordance with the law.The labor union represents and safeguards the interests of employees,represents and organizes employees to participate in the democratic management and democratic supervision in enterprises.The fundamental purpose is to protect the legitimate rights and interests of employees.The labor union negotiates with the enterprise by representing the interests of the employees.This is an important mode for the employees of Chinese enterprises,especially state-owned enterprises,to participate in corporate governance.The fourth is that employees participate in corporate governance through employee shareholding.Employees participate in corporate governance as employees and shareholders by subscribing or purchasing company shares.Employee stock ownership is regarded as an incentive mechanism for many companies,but different from the general incentive mechanism.It has the meaning and rights of shareholders in law.Employees enjoy shareholder qualifications and rights through shareholding,including the right to participate in corporate governance,which is mainly reflected in the participation in decision-making of major business management issues and the exercise of voting rights through shareholder meetings.At present,there are still many problems in employees’ participation of state-owned enterprises in corporate governance.There are more or less problems in the four modes.For example,it is difficult for real employee representatives to enter the board of directors and the board of supervisors;Employee representatives dare not express their opinions or oppose on the board of directors and the board of supervisors;The formalism exists in the election of employee representatives;The relationship between the employee representative assembly and the "Company Law" is not clear;The legislation of the employee representative assembly is not unified;The power of the employee representative assembly is difficult to truly implement;The relief method of the employee representative assembly is not perfect;The status of the labor union is embarrassing;There are many cases of virtualized and weakened labor unions;There is insufficient publicity of factory affairs;There is a lack of supporting laws and policies on employee stock ownership;The source of capital for employee stock ownership also restricts the realization of the system.The various models of state-owned enterprise employees participating company management shall be enhanced and improved continuously,in the aspect of employees joining board of directors and board of supervisors,it shall be unified for various law and regulations including Company Law,Labor Union Law,Employee Representative Union Regulation,Labor Law and Constitution.The removal procedure of employee director and supervisor shall be established.The legal position of employee director and supervisor shall be defined.From employee representative meeting aspect,firstly the blank area of law on employee representative meeting shall be made up,formalism shall be prohibited and power of employee representative meeting shall be really implemented,the remedy measures of employee representative meeting shall be promoted,the participating sense of employees shall be upgraded.From the aspect of labor union,firstly it shall be enhanced the independence of labor union,the factory affairs and disciplinary rules shall be transparent,the legal rights and benefit of employees shall be protected.From the aspect employee stock ownership,first need to promote the acknowledge of the importance and urgency of employee stock ownership,the policy and provision of supporting employee stock ownership shall be released,the fund resources of employee stock ownership shall be diversified.The theory and practice of employee participating company management shall be improved,the acknowledge of the importance of this issue shall be promoted,the system design shall be improved from law and system perspective,more details shall be paid attention from operational perspective and formalism shall be prevented and criticized,the employees shall be respected and the proactivity and creativity shall be promoted,which will make the enterprises develop faster and better. |
