Source: CCTV.com

12-26-2008 10:54

China's state-owned enterprises should avoid cutting jobs in 2009 even though it is shaping up as a difficult year. That's according to the chief regulator of state assets.

Li Rongrong said that state firms should place more  emphasis on "business and social stability".

The Director of the State-owned Asset Supervision and Administration Commission, Li Rongrong, said that state firms should place more emphasis on "business and social stability". Li said there are three major difficulties in the central government-controlled enterprises. They are the production growth rate decline, the economic benefit drop and some firms' debt rate climb, asset liquidity rate drop and debt risk increase. Li stressed that these firms should do everything possible to maintain staff numbers and refrain from job cuts.

Li Rongrong, Director of SASAC said "Wuhan Iron, Anshan Iron, Panzhihua Iron, Air China and Eastern Airlines have taken action. Some have begun cutting salaries in September, with a 12 percent drop, some even reaching 50 percent. The aim is to avoid cutting jobs."

Li Rongrong also urged management of SOEs to give priority to employment stability and refrain from cutting payrolls. He said SOEs should shoulder more responsibilities in the face of the international financial crisis.

Statistics showed that in the first eleven months of this year,the total tax income levied from central-controlled enterprises and local state-owned enterprises reached 1.27 trillion yuan. This is an increase of 20.6 percent and 19.3 percent, respectively, over the same period last year.

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Editor:Xiong Qu