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Many Guangzhou workers face salary cuts, job losses

By Zheng Caixiong (China Daily)
Updated: 2009-11-04 09:03

GUANGZHOU: Many workers in this Guangdong provincial capital are facing salary cuts or job losses, as both the private and the public sectors struggle in the midst of the economic crisis.

As many as 40 percent of the State-owned enterprises (SOEs), or government-controlled shareholding companies, have reduced or plan to reduce staff salaries in the prosperous southern metropolis, according to a recent survey conducted by Guangzhou Urban Survey and Research Center.

More than 50 percent of the city's privately-operated companies have cut jobs in the past months, according to the survey.

But less than 10 percent of the Party and government departments and bureaus have cut staff or reduced salaries.

"Many SOEs have run into difficulties this year because of the worldwide financial crisis," said a manager from a local SOE yesterday.

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Requiring staffs to increase their days off, limiting overtime working hours, reducing salaries and cutting staff have become common measures to fight the financial crisis, said the manager who declined to be named.

"I hoped all the staff can join hands with us to conquer the difficulties," he added.

More than 83 percent of Cantonese people said their lives have been affected by the financial crisis in the past months, the survey showed.

Only 16 percent of the interviewees said their lives have remained unchanged under the economic slump.

And more than 78 percent of the interviewees are cautiously optimistic about salary increases in 2010.

The survey interviewed 1,016 residents in the city's downtown districts of Yuexiu, Liwan, Haizhu, Tianhe, Baiyun and Huangpu in September.

Chen Zhaomin, a staffer from a logistics company, said his monthly salary has not been reduced, but all his allowances for travel, telecommunication and entertainment have either been cancelled or sharply reduced.

"And I have not worked any overtime this year, because my boss cannot pay me overtime," Chen told China Daily yesterday.

Chen estimated his annual income would decrease by about 20 percent this year.

And Wang Cuihong, an accountant from a private firm, said that since the beginning of the year her company has forced staff to take an additional 20 days off every six months.

Also, the staff are usually given only 20 percent of their wages when they are on holidays, Wang said.

Affected by the income reduction, Wang and her family have cut daily living expenses by at least 10 percent this year, she said.