Official: Further pay raise in central enterprises very difficult

来源：百度文库 编辑：神马文学网 时间：2024/04/23 14:40:29

Official: Further pay raise in central enterprises very difficult

15:19, August 20, 2010      

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Despite the fact that industrial enterprises have witnessed salary increases this year, it will be difficult for the central state-owned enterprises, which currently have an average annual salary of 54,000 yuan, to allow further raises, said Li Rongrong, the State-owned Assets Supervision and Administration Commission (SASAC) director, on Aug 10.

Li said a pay hike is not suitable for all businesses, and companies need to make long-term plans according to their ability. He said companies must take into account competitiveness of enterprises and the competitiveness of their products.

"If companies rush into a salary increase, over time they will face operating difficulties or even close down," he said.

Li said given the exchange rate adjustment and rising energy prices, another pay raise will put companies in very difficult situation.

Meanwhile, the impact of the international financial crisis has not yet subsided and the global economy may still be not stable. Also, from a domestic point of view, the macro-economy outlook is still difficult to predict.

Business revenues stood at 16.9 trillion yuan (2.5 trillion U.S. dollars) in the first seven months, the Ministry of Finance said on Aug 18. However, the performance of state-owned enterprises in July fell short of June. The operation revenue of state enterprises in July dropped by 7.8 percent month-on-month, and the net profits dropped 11.5 percent.

Profits of the state enterprises reached 1.10 trillion yuan in the first seven months, up 50.1 percent year on year. The figure in July was 11.5 percent lower than that in June.

Rising costs exerted pressure on the development of the state companies, especially wages. Almost all provinces have raised their minimum wages this year. According to the Ministry of Finance, the total costs for state enterprises in the first seven months totaled 15.81 trillion yuan (2.3 trillion U.S. dollars), up 37.2 year on year.

Li said the current number of central enterprises has declined from 196 to 123 and will soon drop to 120, while the target number is 100 by the year's end. The commission has been urging the central enterprises to be the top three in their business, and the next step is for them to be competitive in the international arena.

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