The Telegraph
Since 1st March, 1999
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China ends secure job system in PSUs

Beijing, Jan. 7 (PTI): China has shed yet another vestige of the planned economy — secure and life-long tenure for over 30 million of its public sector employees.

“The move is one of the biggest shake-ups in the field of employment in China and a vital part of the country’s modernisation programme,” the official China Daily reported today.

The decision to break the Iron Rice Bowl and adopt a contract system comes after a meeting of personnel officials from across China on Sunday.

In a bid to reform the personnel management system of institutions, a contractual personnel system covering China’s 1.3 million state-owned institutions will be in place within five years, vice-minister of personnel, Shu Huiguo announced.

This means the end of the life-long tenure system enjoyed by those employed in state-owned institutions.

Instead, employment contracts between state-owned institutions and their 30 million employees will be introduced over the next three years.

The overhaul will lead to a number of positions becoming redundant and some employees being laid off.

Enactment of the state civil servant law will be the focus of this year’s personnel reforms, Shu said.

Seeking replacement of the current provisional regulations on civil servants, Shu emphasised the importance of recruiting civil servants through open examinations.

These examinations will cover specific areas and include scientific knowledge, he said.

China today dismissed US charges that Hughes Electronics Corp and Boeing Co’s Satellite Systems illegally shared sensitive space technology with Beijing.

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