Redundancies In Chinese State Enterprises PDF Download

This article examines how the problem of surplus labor isbeing dealt with in some of China?s state-owned enterprises. Primarily using interview data from the period 1995-1997, as well as published sources, the article looks at the main methods employed by large state-owned enterprises to reduce the level of surplus labor in their workforce. It also considers how smaller state-owned enterprises are coping in an era where mergers, closures, and bankruptcies are becoming much more common as a means of dealing with loss-making firms, resulting in widespread redundancies in the state-owned enterpriseworkforce. The article illustrates that the potential political repercussions of job losses, as well as direct intervention by local authorities, continue to hinder the freedom of enterprise management to adjust employment levels in the interests of efficiency and productivity. The article also notes the importance of how decisions about downsizing and redundancy are communicated and justified to employees if resistance and social instability are to be minimized. The employment treatment of production workers will be considered separately from that of cadres, since these two groups are subject to different employment regulations and political constraints.