China PSU reforms sparks protests
BEIJING: China has been grappling with protests as economic reforms leave
some retired and jobless workers without subsistence stipends, China's
minister of labor acknowledged Tuesday.
A shortage of government funds means that despite government measures to
guarantee basic living standards and strengthen its job-retraining program,
some unemployed workers get no help, the labor chief, Zhang Zuoji, told
reporters at a briefing in conjunction with China's annual legislative
session.
Zhang declined to say how many labor protests took place in the last year or
how seriously the country's social stability was shaken.
China is entering the third year of a three-year program to make its
debt-ridden state industries profitable. As millions of people have been
laid off around the country there have been sporadic reports of protests by
workers demanding wages, pensions or subsistence stipends.
About 2 percent of China's 29 million retired people, some 500,000 to
600,000 people, did not get pensions on time or in full last year, Zhang
said. In addition, about 600,000 to 700,000 workers did not get basic living
allowances, including some in serious need, he said.
The central government has earmarked more funds and is asking local
governments to cover shortfalls, he said.
"While pressing ahead with reform we must also retain social stability,"
added the minister in charge of the State Economic and Trade Commission,
Sheng Huaren. When a protest occurs "we must address it immediately to make
sure the whole situation remains stable".
China had 6,599 large and medium state enterprises that were in the red when
the reforms began in 1998 and has reduced that number by 49 percent, Sheng
said. He claimed a "remarkable improvement" across the country, including in
the northeast, where many state factories are concentrated.
The goal of getting most companies out of debt by 2001 "could certainly be
accomplished," he said.
Some companies were reporting losses for the first time this year, but 40
percent of these had only small losses, Sheng said. Some of these new
loss-makers were filing false reports in order to qualify for financial
support, he added.
Last year, China had 11.7 million laid-off workers and 5.2 million of them
found new jobs, Zhang, the labor minister, said. This year, China expects 5
million more layoffs and so its total number of laidoff workers will remain
the same as last year, he said.
Government figures substantially understate the actual number of unemployed,
which economists say may be as high as 18 million people, or 10 percent of
the urban workforce. (Associated Press)
For reprint rights: Times Syndication Service
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