DALIAN CHINA  DALIAN CHINA
Opinions of Dalian Municipal People's Government on Reform of Wage Determination Mechanism in State-owned Enterprises
2019-03-18

The people's governments of all districts, cities and counties, the administrative committees of all pilot districts, all commissions and bureaus of the municipal government, all institutions directly under the municipal government, and all relevant units:

 The reform of the wage determination mechanism in state-owned enterprises is an important part of improving the modern enterprise system in state-owned enterprises and an important task of deepening the reform of the income distribution system. It is related to the healthy development of state-owned enterprises, the vital interests of enterprise employees and the reasonable and orderly distribution of income. In order to thoroughly implement the " opinions of the state Council on reforming the wage determination mechanism for state-owned enterprises" (Guofa [ 2018 ] No.16), accelerate the reform of the wage determination mechanism for state-owned enterprises in our city, and establish and improve the wage determination mechanism and normal growth mechanism that are basically adapted to the labor market and linked to the economic benefits and labor productivity of state-owned enterprises, according to the " opinions of the people's government of Liaoning province on the implementation of the reform of the wage determination mechanism for state-owned enterprises" (Liaofa [ 2018 ] No.40), and in combination with the actual situation in our city, the following implementation opinions are put forward.

 First, the reform of the total wages of state-owned enterprises to determine the mechanism

 (1) the reform of the total wage determination method. The city's state-owned enterprises at all levels should reasonably determine the total annual wages in accordance with the macro-policy requirements of national, provincial and municipal wage income distribution, the enterprise development strategy and salary strategy, the annual production and operation objectives and economic benefits, taking into account the improvement of labor productivity, the input and output rate of labor costs, the market benchmarking of workers' wage levels, etc., and in combination with the wage guidelines and wage growth control objectives issued by the municipal human resources and social security bureau. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 (2) classification to determine the wage benefit linkage index. The city's state-owned enterprises at all levels should scientifically set wage and benefit linkage indicators according to their functional nature and industry characteristics. Institutions that perform the responsibilities of investors should comprehensively consider the actual conditions and assessment priorities of different state-owned enterprises, and reasonably determine performance assessment indicators that reflect the production and operation characteristics of enterprises and reflect the direct contribution of employees' labor. The wage-benefit linkage index shall not exceed 4 in principle.

 For competitive state-owned enterprises (whose main business is in fully competitive industries and fields), the economic benefit indicators mainly include total profit (or net profit), economic added value, return on net assets and other indicators.

 For functional state-owned enterprises (whose main business is in important industries and key fields related to national security and the lifeblood of the national economy, and they mainly undertake major special tasks), while mainly selecting indicators that reflect economic benefits and the preservation and appreciation of state-owned capital, they can increase operating income, task completion rate and other indicators that reflect the conditions of serving the national strategy, ensuring national security and the operation of the national economy, developing forward-looking strategic industries and completing special tasks according to the actual situation.

 For state-owned enterprises in the public welfare category (whose main business is to protect people's livelihood, serve the society, and provide public goods and services), indicators reflecting cost control, product service quality, operating efficiency and security capability are mainly selected, and indicators reflecting economic benefits and value maintenance and appreciation of state-owned capital, such as total profits and rate of return on net assets, are taken into account.

 For financial state-owned enterprises, which are of a developmental and policy nature, the indicators that embody the national service strategy and risk control are mainly selected, and the indicators that reflect economic benefits are taken into account. It is commercial and mainly selects indicators that reflect economic benefits, asset quality and solvency. Among them, the economic benefit indicators mainly include net profit (or total profit), return on equity and other indicators; The strategic indicators for serving the country mainly include the proportion of policy-related businesses, non-agricultural business control, capital magnification, guarantee rate and other indicators. Risk cost control indicators mainly include capital adequacy ratio, non-performing loan rate, provision coverage rate, leverage ratio, guarantee compensation rate, compensation loss rate and other indicators.

 For cultural state-owned enterprises, indicators reflecting social and economic benefits and preserving and increasing the value of state-owned capital should be selected at the same time. Social benefit indicators mainly include political orientation, cultural creation, production and service. Economic benefit indicators mainly include total profits, operating income and other indicators.

 The labor productivity indicators of all kinds of state-owned enterprises above are generally based on per capita added value and per capita profit. According to the actual situation of enterprises, per capita operating income, per capita workload and other indicators can be selected. Labor cost input and output rate index mainly selects labor cost profit rate, personnel cost rate and other indicators. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 (3) the establishment of state-owned enterprises wages and benefits linkage mechanism. The city's state-owned enterprises at all levels should be in accordance with the " benefits increase wages, benefits decrease wages" principle of the same direction linkage, reasonably determine the annual total wage growth or decline.

 If the economic benefits of state-owned enterprises increase, the growth rate of total wages in that year can be determined within the scope of economic benefits growth. Among them, if the labor productivity did not increase in the current year, the labor cost input and output rate in the previous year was lower than the industry average level or the average wage of workers in the previous year was 2.5 times higher than the average wage of employed workers in urban units nationwide, the growth rate of total wages in the current year shall not exceed 70% of the growth rate of economic benefits in the same period. For enterprises whose main businesses are not in fully competitive industries and fields, if the average wage of employees reached the regulation level set by the municipal human resources and social security bureau and above in the previous year, the growth rate of total wages in the current year shall not exceed the growth rate of economic benefits in the same period, and the average wage growth rate of employees shall not exceed the regulation target of wage growth set by the municipal human resources and social security bureau.

 If the economic benefits of state-owned enterprises decline, the total wages in that year will decline correspondingly in principle, except for non-operating factors such as policy adjustment. Among them, if the labor productivity did not drop in that year, the labor cost input and output rate in the previous year was obviously better than the industry average level, or the average wage of workers in the previous year did not reach 80% of the national average wage of employed workers in urban units, the total wage in that year could be appropriately reduced. The specific reduction criteria shall be determined by the state-owned enterprise's performance of investor's duties according to the actual situation of the state-owned enterprise.

 If the state-owned enterprise fails to maintain and increase the value of the state-owned assets, the total wages shall not increase or decrease moderately. The specific reduction criteria shall be determined by the state-owned enterprise's performance of investor's duties according to the actual situation of the state-owned enterprise.

 State-owned enterprises shall determine the total wages in accordance with the linkage mechanism between wages and benefits. In principle, the total wages shall not be increased by increasing the number of employees or decreased by decreasing the number of employees. However, in case of merger and reorganization, establishment of new enterprises or institutions, etc., the total wages may be increased or decreased reasonably. The specific increase or decrease criteria shall be determined by the state-owned enterprise's performance of investor's responsibilities according to the actual situation of the state-owned enterprise. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 Two, the reform of state-owned enterprises total wages management mode

 (4) the full implementation of total wages budget management. The city's state-owned enterprises at all levels should be based on the wage income distribution policy and the enterprise's actual independent preparation of the total wage budget plan, in accordance with the provisions of the internal decision-making procedures, reported to fulfill the responsibilities of investors institutions for the record or approval before implementation. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 (5) improve the supervision of total wages. All levels of state-owned enterprises in the city to fulfill the responsibilities of investors institutions should be based on the functional nature of the enterprise positioning, industry characteristics, and combined with the degree of perfection of corporate governance structure, the supervision of state-owned enterprises total wage budget implementation filing system or approval system management.

 For competitive state-owned enterprises, the total wage budget shall be filed in principle. Among them, those enterprises that have not established a standardized board of directors, imperfect corporate governance structure, unsound internal control mechanism, major violations of discipline in wage distribution in the past three years, or other enterprises that temporarily do not have the conditions to implement the filing system management, have their total wage budget approved by the institutions performing the responsibilities of investors.

 For other types of state-owned enterprises, the total wage budget shall be approved in principle. Among them, enterprises that have established a standardized board of directors, a sound corporate governance structure, a sound internal control mechanism, and a standardized income distribution management can implement a filing system for their total wage budget with the consent of the institutions that perform the responsibilities of investors.

 For the state-owned enterprises that implement the filing system management, if the total wage budget management is not standardized or there are major violations of discipline and rules in wage distribution, the institutions that perform the responsibilities of investors may adjust the total wage budget to the approval system management. For an enterprise under the approval system, if there has been no major violation of discipline in the management of the payroll budget and wage distribution in the past three years, the institution performing the responsibilities of investor may adjust its payroll budget to the filing system management. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 (6) Reasonably determining the budget cycle of total wages. The total wage budget of state-owned enterprises at all levels in the city is generally managed on an annual basis. For enterprises with obvious cyclical characteristics of the industry and large fluctuations in economic benefits between years, or enterprises in the preparatory establishment period, start-up period, strategic adjustment period, rapid expansion period, or enterprises with other special circumstances such as restructuring and restructuring, with the consent of the state-owned enterprises' institutions that perform the responsibilities of investors, the total wage budget can be managed on a periodic basis, with the period not exceeding three years at the most, and the total wage growth in the cycle should meet the requirements of linkage between wages and benefits. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 (7) the establishment of state-owned enterprises wage distribution industry benchmarking mechanism. All levels of state-owned enterprises in the city should choose enterprises in the same industry, with similar enterprise scale and similar benefit level in the country, and make a comparison of profits, net asset return rate, labor productivity and wage level, and conform to the wage price in the labor market. (responsible unit: municipal state-owned enterprises at all levels perform the responsibilities of investors)

 (8) to strengthen the implementation of the total wage budget. The city's state-owned enterprises at all levels should strictly implement the total wage budget plan that has been filed or approved. In the process of implementation, due to major changes in the external environment of the enterprise or the circumstances on which the budget is prepared for its own production and operation, if it is necessary to adjust the total wage budget plan, it shall be adjusted in accordance with the procedures prescribed by the state-owned enterprises at all levels to fulfill the responsibilities of investors. State-owned enterprises at all levels should strengthen the dynamic monitoring and guidance of the implementation of the total wage budget of the enterprises under supervision, and carry out the liquidation of the budget implementation results. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors)

 

Three, improve the internal salary distribution management of state-owned enterprises

 (9) to establish and improve the internal total wage management system of state-owned enterprises. The city's state-owned enterprises at all levels in the total wage budget after filing or approval, in accordance with the law in accordance with the rules and regulations independently determine the internal wage distribution plan. State-owned enterprises at all levels should establish and improve the internal payroll management system, guide their subordinate enterprises to scientifically prepare the payroll budget plan, implement the budget implementation responsibility step by step, establish a dynamic monitoring mechanism for budget implementation, standardize the payroll management of enterprises at all levels within the enterprise, and ensure the realization of the payroll budget target. (responsible unit: municipal state-owned enterprises at all levels)

 (10) to deepen the reform of the internal distribution system of state-owned enterprises. State-owned enterprises at all levels in the city should conscientiously implement the talent evaluation and incentive system oriented to increase the value of knowledge, consider factors such as attracting and retaining talents with competitive salary levels, improving labor productivity and reducing labor costs, and scientifically formulate compensation strategies that are suitable for the development strategy of the enterprise.

 The city's state-owned enterprises at all levels should establish and improve the basic wage system with post wages as the main body. Based on job value, performance-oriented, referring to the wage level in the city's labor market and in combination with the economic benefits of enterprises, the wage levels of different jobs are reasonably determined through collective negotiation and other forms, with a preference for high-level and highly skilled personnel in key positions, production frontline positions and positions in urgent need.

 State-owned enterprises at all levels in the city should establish a performance appraisal system for all employees. We will closely link the wage income of employees with their work performance and actual contributions, rationally widen the wage income gap, adjust unreasonable and excessively high income, and ensure fair and equitable distribution and increase and decrease wages. In principle, the average wage growth rate of (Group) headquarters employees should be lower than that of all employees in the enterprise. (responsible unit: municipal state-owned enterprises at all levels)

 (11) standardize the state-owned enterprise wage charged channels. State-owned enterprises at all levels in the city should adjust and optimize the wage income structure, and gradually realize the wage of employees, monetization of wage income and transparency in distribution. Strict clean-up and standardization of wage income, all wage income will be included in the total wage budget management, not in the total wage in any other way charged to wage income. (responsible unit: municipal state-owned enterprises at all levels)

 Four, improve the state-owned enterprise wage distribution supervision system and mechanism

 (12) to strengthen and improve the government's macro guidance and control of the wage distribution of state-owned enterprises. Human resources and social security departments at all levels are responsible for macro-guidance and regulation of the wage distribution of state-owned enterprises at the same level, and strengthening prior guidance and post supervision. The municipal human resources and social security bureau is responsible for the establishment of an enterprise salary survey and information release system to release information on labor market wage prices and labor costs for different occupations in the region. The Municipal Human Resources and Social Security Bureau, in conjunction with the Municipal Finance Bureau, the Municipal State-owned Assets Supervision and Administration Commission and other departments, will improve the system of wage guidelines for enterprises and release the wage guidelines for enterprises, the average wage control level for employees of non-competitive state-owned enterprises and the wage growth control targets. (Responsible units: municipal human resources and social security departments at all levels, municipal finance departments at all levels, and municipal state-owned assets supervision departments at all levels)

 (13) the implementation of the state-owned enterprise wage distribution supervision responsibilities of the institutions that perform the duties of investors. All levels of state-owned enterprises in the city perform the responsibilities of investors. The institutions responsible for filing and approving the total wage budget plan of the supervised enterprises are responsible for strengthening the dynamic monitoring of the implementation of the total wage budget of the supervised enterprises and the liquidation of the implementation results. They will report the implementation of the total wage budget of the supervised enterprises to the human resources and social security department at the same level on an annual basis, and the human resources and social security department will summarize and report to the government at the same level. (responsible units: municipal state-owned enterprises at all levels perform the responsibilities of investors, municipal human resources and social security departments at all levels)

 (14) improve the internal supervision mechanism of wage distribution in state-owned enterprises. State-owned enterprises at all levels in the city should strengthen the system construction, improve the internal control mechanism, and standardize the operation of the board of directors and the board of supervisors. The board of directors of state-owned enterprises shall, in accordance with legal procedures, decide on matters of wage distribution and strengthen supervision over the implementation of wage distribution resolutions. The board of supervisors of state-owned enterprises shall perform their supervisory responsibilities for wage distribution according to law. The income distribution system for employees of state-owned enterprises, wage adjustment plans and other major distribution matters that affect the vital interests of employees shall be implemented through legal decision-making procedures, democratic procedures and review and filing procedures. To adhere to the publicity of factory affairs, the distribution of wages and incomes of employees shall be regularly disclosed to the employees and subject to the supervision of the employees. (responsible unit: municipal state-owned enterprises at all levels)

 (15) the establishment of state-owned enterprises wage distribution information disclosure system. City state-owned enterprises at all levels to fulfill the responsibilities of investor institutions, state-owned enterprises before the end of October each year will be state-owned enterprises last year's total wages and average wages of workers and other relevant information through the state-owned enterprises to fulfill the responsibilities of investor institutions official website, the state-owned enterprise department in charge of the official website and the state-owned enterprise official website were disclosed to the public, accept social supervision. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors, municipal state-owned enterprise departments at all levels).

 (16) improve the supervision and inspection system of internal and external income of state-owned enterprises. Human resources and social security departments at all levels are responsible for conducting regular supervision and inspection of the implementation of the national, provincial and municipal wage and income distribution policies by state-owned enterprises in conjunction with the finance and state-owned assets supervision departments at the same level, and promptly investigate and deal with illegal wage distribution and excessive wage and extra-income distribution. Human resources and social security departments at all levels should strengthen coordination with investor supervision and auditing, taxation, discipline inspection and supervision, inspection and other supervision departments, establish work consultation and resource sharing mechanisms, improve supervision efficiency, and form a joint supervision force.

 For all levels of state-owned enterprises exist over-raising, over-payment of total wages and other illegal acts, the total wages paid in violation of regulations shall be deducted, and the person-in-charge of state-owned enterprises and relevant responsible personnel shall be given economic punishment and disciplinary sanctions according to regulations according to the illegal situation. If a crime is constituted, the judicial organ shall investigate the criminal responsibility according to law. (Responsible units: municipal human resources and social security departments at all levels, municipal finance departments at all levels, municipal state-owned assets supervision departments at all levels, municipal auditing departments at all levels, municipal taxation departments at all levels, and municipal discipline inspection and supervision organs at all levels)

 Five, do a good job in organizing the implementation of the work

 (17) to strengthen organizational leadership. The reform of the wage determination mechanism in state-owned enterprises is a work that involves a wide range of issues and has a strong policy. The municipal and county governments and relevant departments should unify their thinking and understanding, with a high degree of political responsibility and historical sense of mission, earnestly strengthen their leadership over the reform work, do a good job in overall planning and coordination, strengthen supervision and inspection, promptly study and solve the problems arising from the reform, and promote the smooth progress of the reform. (Responsible units: municipal and county governments, municipal human resources and social security departments at all levels, municipal finance departments at all levels, and municipal state-owned assets supervision departments at all levels)

 (18) to promote the reform as a whole. City state-owned enterprises at all levels to fulfill the responsibilities of investors institutions should pay close attention to the formulation of the supervision of state-owned enterprises of the specific reform implementation measures, before the end of March 2019 reported to the same level of human resources and social security departments, by the same level of human resources and social security departments in conjunction with the same level of finance department for examination and implementation. State-owned enterprises at all levels in the city should, in accordance with the implementation opinions and the requirements of state-owned enterprises to fulfill the responsibilities of investors, and in combination with the actual situation of the enterprises, pay close attention to the development of the enterprise's total wage budget management system to ensure that the reform is started on time. (responsible units: municipal state-owned enterprises at all levels, municipal state-owned enterprises at all levels to fulfill the responsibilities of investors, municipal human resources and social security departments at all levels, municipal finance departments at all levels)

 (nineteen) do a good job in public opinion propaganda. Municipal human resources and social security, finance, state-owned assets supervision and other departments and trade union organizations at all levels should carry out their respective duties, cooperate closely, jointly do a good job in the reform work, and form a joint force to promote the reform. To strengthen public opinion propaganda and policy interpretation, to guide the whole society, especially the staff of state-owned enterprises, to correctly understand and support the reform, and to create a good social environment for the reform. State-owned enterprises at all levels in the city should consciously set up the overall situation concept, strengthen the propaganda and guidance of employees, earnestly implement the reform regulations, and ensure the implementation of the reform policy. (responsible units: municipal state-owned enterprises at all levels, municipal institutions of state-owned enterprises at all levels performing the responsibilities of investors, municipal human resources and social security departments at all levels, municipal financial departments at all levels, municipal state-owned assets supervision departments at all levels, and municipal trade union organizations at all levels)

 

The implementation opinions are applicable to wholly state-owned and state-controlled enterprises in our city where governments at all levels perform the responsibilities of investors on behalf of the state. Institutions that perform the responsibilities of investors include state-owned assets supervision institutions that perform the responsibilities of investors on behalf of the government and departments (agencies) authorized by the government to perform the responsibilities of investors.

 

Enterprises with relevant government departments or agencies at all levels as actual controllers, as well as wholly state-owned and state-controlled enterprises managed by Party committees at all levels, relevant government departments, people's organizations and institutions, shall be implemented with reference to the implementation opinions.

 

The term " total wages" as mentioned in the present implementation opinions refers to the total amount of labor remuneration directly paid by the state-owned enterprise to all employees who establish labor relations with the enterprise within one fiscal year, including wages, bonuses, allowances, subsidies, overtime wages, wages paid under special circumstances, etc.

 

The implementation opinions shall be implemented as of January 1, 2019. Our city's current state-owned enterprise total wages management regulations, where inconsistent with the implementation of the views, according to the implementation of the views of the implementation.

                                                                                                                                                                                                                The People's Government of Dalian City

                                                                                                                                                                                                                               March 18, 2019