November 19, 2008

Beijing Tells SOEs To Avoid Layoffs


China's all powerful State Council is getting the word out to the Provinces and cities: help the unemployed and get them to consume! State owned enterprises are told to avoid layoffs and must get approval for any layoff of more than 50 workers. Incentives abound to keep workers in their jobs and Beijing is exploring a type of unemployment insurance something not currently available from the central government. Smaller and private busineses are urged to "refrain" from layoffs.

A major shift in Chinese society is underway as millions of unemployed migrant workers are returning to their home provinces, towns, villages, and farms, and Beijing is making it clear to Mandarins in the field: if they don't settle down but return to the mega cities of the coast, the attempt to redirect the economy will fail. Conditions are apparently tense as the recent disturbances in Gansu illustrate. If the mood continues it reinforces the need to enact the land reforms promised in last months Party conference.

Labels:


Comments: Post a Comment

Subscribe to Post Comments [Atom]





<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]