Employees in China's state-owned enterprises (SOEs), commonly thought to be
handsomely paid, suffer from major internal income disparities, according to a
report from the Party School of the CPC Central Committee.
The report, composed by students of the school who are usually high-ranking
party officials, said despite a substantial increases in their salaries, SOE
employees have seen income gap widen significantly in recent years.
The ratio of the highest average salary to the lowest at central SOEs in 27
major sectors has expanded from 3.5 in 2002 to more than 6.5 in 2005.
Employees in the service industry got the highest annual pay in 2005,
averaging 72,000 yuan (about 9,230 U.S. dollars), while textile workers got the
lowest, 11,000 yuan.
Even for the same job, people got paid differently. The report cited the case
of lift operators, saying a permanent employee gets 3,000 yuan a month, while a
temporary employee only made 600 yuan. Temporary employees were mainly
farmer-turned laborers.
Of the top 10 best-paid professions, most were in monopoly sectors.
The report said the government should speed up reforms in monopoly industries
by removing administrative protection and exposing them to competition.
Meanwhile, more work should be done to enhance income auditing, raise
salaries of low-income groups and make income distribution more transparent,
according to the report.
The report suggested the government require employers and employees at
monopoly enterprises to make their paysheets public.
Sky-high pay at SOEs, especially those in monopoly sectors, has aroused
public anger in China. Salaries in electricity, petroleum, finance and
telecommunications enterprises are hotly debated on the internet.
A study shows China's Gini Coefficient, a measure of income inequality, has
reached 0.465, reflecting a large and expanding wealth gap.
