Local Govts Urged to Increase Incomes

Ultimate goal of economic growth is to benefit people, premier says

Premier Li Keqiang urged local governments on Monday to work harder to increase workers' incomes and social insurance. Trade union representatives pledged to strengthen collective bargaining to meet the goals.

"The ultimate goal of economic development is to benefit our people," Li said during his report delivered to around 1,900 delegates at the 16th National Congress of the All-China Federation of Trade Unions, who gathered in Beijing for the five-day meeting that ends on Tuesday.

The government will create more job opportunities, ensure workers' incomes increase in line with economic growth and share the fruits of development, he said.

He stressed that all levels of government should attach great importance to solving problems involving pensions, healthcare, minimum living subsidies and housing.

Li said he noticed a worrying phenomenon that some employers failed to make a contribution to their workers' insurance when their companies encountered difficulties.

As China aims to move away from an export dependent economy to consumption-based economic development, wages should increase in step with productivity improvements, said Youngmo Yoon, a senior specialist on industrial relations and social dialogue at the International Labour Organization's office in Beijing.

"Our studies in China have also shown that robust collective bargaining based on active participation of workers can reduce wage gaps," he said. "Trade unions play a crucial role in ensuring better balance of distribution and redistribution. It is paramount that trade unions become effective in conducting collective bargaining."

Cui Minglong, vice-chairman of the federation of trade unions in the Inner Mongolia Autonomous Region, said he felt encouraged by the premier's speech.