Henan bosses face fine if fail to raise workers' salaries under new rule

Central China's Henan Province is expected to enact a regulation allowing for enterprises to be fined 10,000 yuan ($1,641) or more if they consistently fail to raise workers' salaries, the Xinhua News Agency reported.
 
The province is discussing the draft on government-backed collective negotiation systems, which help workers have the right to negotiate with enterprises over wages. In most countries these matters are handled by independent unions, but in China government-run "labor authorities" are supposed to protect workers' interests.
 
If an enterprise fails to accept "appropriate opinions and suggestions" from workers, or doesn't change its payment plans over time, the labor authorities will fine the enterprise between 2,000 and 20,000 yuan, including an individual fine for the boss or legal representative of the company of up to 10,000 yuan.
 
A worker surnamed Zhang had to change his job three times in the past five years in Zhengzhou, Henan Province due to wage stagnation. "It's no use talking about my salary with the boss, there are many people waiting to take my job if I don't want it," Zhang said.
 
Zhang was negative toward the draft, saying "A fine of 10,000 yuan for not raising salaries? If I was the boss I'd take the fine and not raise the salary." His attitude was echoed by many.
 
A Net user "Aiweiyi 320" said, "I was so happy and I gave the policy with thumbs-up. But say raising incomes would cost 500,000 yuan, and the fine is just 10,000. Are you kidding me?"
 
"Aicourennaodelengxiang" said the penalty cannot protect the rights and interests of workers, and cannot deter unscrupulous bosses.
 
Others said wage issues cannot be resolved with fines, but should be left to the market rather than government intervention. Another Net user "Tianyahaijiaoyiyiouxia" wrote that if wages aren't raised, workers will leave.
 
Fan Ming, a professor with the Henan University of Economics and Law, said the government could not just impose simple administrative regulations, as "the market plays a decisive role in the allocation of resources."
 
"It should be linked to the greater market environment and economic environment to decide how much higher salaries can be raised, and finally decided by negotiations," Fan said.
 
Fan also claimed that if workers' salaries are under the local minimum wage, laborers could protect their legitimate rights through the country's minimum wage regulations.