Pitch to raise minimum wage in Guangzhou: official
- Source: Global Times
- [18:27 November 27 2009]
- Comments
An official with the Guangzhou Municipal Government proposed Thursday that minimum wages in the southern Chinese city be raised from 860 yuan to 1,000 yuan.
Cui Renquan, director general of the Bureau of Human resources and social security in Guangzhou made the suggestion to National People' s Congress (NPC) members during their inspection of the city.
"Compared with current price of labor power, 860 yuan per month is far from meeting needs of daily life in Guangzhou. Companies that offer wages below 1,000 yuan are unlikely to recruit employees. Low income reduces consumption capacity," Cui said, thus proposing the minimum pay be raised to 1,000 yuan.
"Taking this suggestion of 1,000 yuan, corporations with good operating status can definitely pay this amount, but those in the red will not be able to," responded Situ Jianquan, a deputy to the NPC of Guangdong Province.
Cui explained he had made a similar proposal last year but it was not approved.
The wage policy is more than just revenue distribution; it means weeding out weak companies. Some enterprises survive by exploiting workers with low salaries and do not invest in advanced technology, thus do not further develop the industry. If policy makers adopt Cui's proposal, these companies will have to choose between updating their technology or withdrawing from the market. Even though these companies can contribute jobs and taxes, these are not outweighed by the environmental pollution and labor disputes that result.
Low wages result in a large number of residents being unable to consume. The troika of investment, consumption and exportation push up GDP growth, but now under consumption has dragged it down.
"I will be the first supporter of this proposal," said Liu Wei, another deputy to the NPC in Guangdong.
