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China: Workers to get say in state-owned firms

November 16, 2006 13:39 IST

To protect labour rights, the Chinese government has instructed 161 large state-owned enterprises to revive the 'company congresses' in which workers will have a major say in company decision-making, the state media reported on Thursday.

The government document, to be issued early next year, will ensure that workers in large SOEs share the fruits of company growth, Wang Ruixiang, vice chairman of the state-owned Assets Supervision and Administration Commission said.

Chinese experts believe the move will make it harder to lay off employees and strengthen the crackdown on corruption. Protecting workers' rights has been a hot topic in recent months.

The Chinese Cabinet last week recommended that workers be more involved in decisions about restructuring state-owned firms.

Company congresses

will function like the National People's Congress, the country's top legislature. Worker deputies will convene from time to time to make important decisions, according to the document.

This will ensure that large SOEs consider the interests of employees as well as shareholders. Another benefit is that the management of state assets will become more transparent, Xinhua news agency reported.

Chinese state-owned companies have struggled to grow in the past decades. They have had to cope with the challenges of reform and opening up, and have laid off millions of workers, most of whom were forced to leave their jobs with little compensation.

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