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| Friday, September 05, 2008 23:35:46 |
Income redistribution among monopolized industries needs to be practiced
Guangdong’s Department of Labour and Social Security released a report, saying that monopolized industries and companies should redistribute income and salary system, Xinhua reported.
High salary among monopolized companies has become more than a social issue in China. Among 169 state enterprises under State-owned Assets Supervision and Administration Commission, 12 companies had profit amounted to 100 million yuan in 2005 and the salary of their staff are 3 to 4 times more than the national average.
Such imbalanced salary distribution goes against the fair corporate payment principle. As these industries such as electricity are monopolized by small circles, the level of monopoly determines the salary of the workforce, whose qualification, contribution or workload do not equal to the pay they receive.
This monopoly phenomenon negatively affects market’s resources distribution and efficiency. Though with high income or profit, these companies’ technological level, management and efficiency are affected by their bureaucratic structure.
Solving the unequal salary distribution not only can help bridge the gap between different industries but also adjust the economic development to a healthy direction with opening of markets, increased competition and fair distribution of resources as well as opportunities.
Scientific auditing and accounting procedures are also the key to tighten supervision on monopolies, Xinhua suggested.
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