From Zaobao (Singapore): Guangdong stipulates that if there are no wage rises, there must be no rises in leading managers’ salaries either.
Southern Metropolis Daily (南方都市报) reports that the Guangdong Social Security Bureau has published annual wage guidelines, differentiating the Pearl River Delta and the lagging areas with 15% and 10% respectively. Companies where production line workers aren’t rising, the managers’ salaries must not rise either. Companies which want to go beyond the upper line must also conform with four standards.
According to guiding principles, within the Pearl River Delta (including Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan and Jiangmen) the reference line is 15%, the upper limit is 21%, and the lower limit is 5.5%.
In the Eastern, Western and Northern Guangdong areas, the reference line is 10%, the upper limit is 15%, and the lower line is 3.5%.
When production and management situations are normal and the economic efficiency is rising, last year’s wages were 80% above but less than twice the average local wages, new wage rises can be defined according to the reference line. When they are both 80% [above] and more than twice the average local wages, new wage rises should be below the reference line. When it is 80% below average wages [I’m not sure if I got that right (JR)], wage rises can be between the reference line and the upper limit. In companies where the production and management situation is still normal, but economic efficiency is slow, wage rises can be arranged at a rate not below the lower limit.
When economic efficiency is dropping rather clearly or at companies incurring losses, wage rises can be below the lower limit, if unions or workforce delegates agree, but wages must not be below the lowest local wge standards, and the companies must take measures to ensure that the workforces basic standard of living doesn’t drop.
According to material on the internet, the guidelines only apply for state-owned enterprises, but also have a guiding function for non-state enterprises. The authorities use them as a macro-economic control tool on wages.
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