China looms poor to thaw minimum wage

A recent media survey showed that 56% of economists and entrepreneurs believe that the current economy faces obvious inflationary expectations, if the minimum wage is not adjusted, the basic life of some low-income workers will be affected, the "poor clan" will increase. In addition, recent discussions on increasing the proportion of residents ' income in GDP have become increasingly enthusiastic.　　Chowan, director of labor Relations at China Institute of Labor Relations, called for "thawing" the minimum wage, raising the wage level of low-income workers and sharing the fruits of social and economic development. Under the economic crisis, China's economic growth slowed down, in order to help enterprises tide over the difficulties, stable employment, November 17, 2008, the Ministry of Human Resources and Social Security issued a notice, asked to postpone the adjustment of enterprise minimum wage standards. After more than a year, due to our government's macroeconomic policy measures, our economy has been preliminarily restored. Since the second quarter of this year, China's economy has rebounded markedly, with GDP rising 7.9% per cent in the quarter and 8.9% in the third quarter. Meanwhile, China's entrepreneur confidence index rebounded to 120.1 in the three quarter, up 9.9 points from the second quarter.　　In this context, the Government should restore the minimum wage adjustment system, encourage conditional areas to raise the minimum wage, raise the wage level of low-income workers and share the fruits of social and economic development. Reporters surveyed the national human Resources and Social Security Department website found that 2008 China has nearly half of the provinces did not adjust the minimum wage level. Meanwhile, the overall level of consumer prices rose by 5.9% in 2008, up 1.1% per cent from 2007. Although the CPI data for the three quarter of 2009 years ago fell from the year before 2008, the residents felt still rising prices.　　The National Bureau of Statistics pointed out that this was mainly due to the 2008 price index growth too fast, the impact of high base period index, but also admitted that there are some deficiencies in consumer computing methods, so that some aspects of the real level of residents ' consumption reflects not enough. According to a recent survey by CCTV's "economic half-hour" column, 56% of economists and entrepreneurs believe that the current economy is facing obvious inflationary expectations, but inflation has not yet arrived, and another 33% believe that the inflation trend has taken shape and we are now in the midst of inflation. Economist Cheng said that if the people's income growth exceeds the inflation rate, then inflation will not bring real losses to the masses.　　Therefore, in this context, it is particularly necessary to restart the adjustment of minimum wage standards. In this regard, Chowan, director of the Department of Labor Relations of China Institute of Labor Relations, said that under the condition of market economy, the employee's wage level is mainly determined by the labor market supply and demand competition, but for various reasons, at present our country ordinary and its trade union organization lacks to the enterprise necessary bargaining power, some In particular, the low level of staff pay is mainly referred to the local minimum wage standards. The minimum wage system, as the only means by which the government regulates the bottom line of the enterprise's wage level, if even this means is shelved, some enterprises will push down the laborThe way to get the excess profit, will make the basic life of some low-income workers will be affected, the work of the poor will appear and increase, so that workers participate in the enthusiasm of employment frustrated, and then affect social harmony and stability. At the same time, due to the low purchasing power of workers, it is not conducive to expanding consumption and stimulating domestic demand, but also has negative effects on economic development.　　From the perspective of long-term development, wage collective bargaining should be promoted from enterprise to industry level, so as to promote the establishment of normal wage growth mechanism to achieve joint-construction and sharing. In response to the "thaw" minimum wage adjustment may affect economic development, the Chinese People's University of China Employment Research Institute, a lecturer in China Institute of Labor Relations, Dr. Lee Hongjian that, from international experience, no developed country's sustained economic development and prosperity is dependent on the wages of workers to maintain, On the contrary, the high salary creates the latent pressure, impels the enterprise and the country to promote the low income person's labor skill, promotes the science and technology innovation ability and the social productivity level enhancement, thus enhances the national economic strength and the social welfare level, in this process, the low-income group will obtain more income.　　From the experience of the developed countries to deal with the crisis, because of the election constraints, generally do not take the method of suppressing workers ' income for enterprises "burden", but through the classification of guidance, special assistance and tax reduction means to give business support, these practices are worthy of reference. In view of the problem that raising the minimum wage may increase the burden of difficult enterprises and have a negative impact on employment, Dr Lee Hongjian pointed out that the impact of minimum wage on employment was controversial in academia, and that raising the minimum wage would have a negative impact on employment and did not have sufficient theoretical and empirical research support. However, in developed countries, wages generally account for about 50% of operating costs, compared with less than 10% in China. In this context, if our enterprises still need to hold down ordinary wages for a long time to survive, the management and technical level of these enterprises is low, the Government continued to support its survival will cause waste of social resources, not conducive to legitimate market competition, but also may increase foreign anti-dumping proposals against our country.　　Therefore, the promotion of employment through such enterprises does not have much significance, because such wage level can not meet the basic needs of workers, let alone promote the all-round development of workers and share the fruits of social and economic development. It is understood that China's current minimum wage system, the minimum wage, has been formally implemented since March 1, 2004, which clearly points out that the minimum wage standards should be adjusted at least once every two years, taking into account the urban residents per capita living expenses, the average wage of workers, the level of economic development and other factors to determine. However, the local government for investment, promote economic growth and other aspects of the initiative is not high, in some parts of the year minimum wage adjustment is lower than prices and social average wage growth, much lower than the same period of economic growth.