Chen (2004)

Management > Asian Management > Lectures > Independent Research > Chen - China > Issues with CSEs > Further issues > 1979 change > 1984 change > CSE future > Future continued

Future continued - Labour

The labour system needs change, including the following:

• Elimination of the "three irons" system (the "iron chair", the "iron rice bowl" and the "iron wage"), 
• Development of a national welfare system to deal with unemployment.
• Too many CSEs are holding onto the traditional functional model, where departments are laid out irrationally, with too many of the wrong activities (Life-support and socio-political systems) and not enough of necessary ones (such as R&D). This results in inefficiency, poor quality and duplication of information.
• The new system means that workers under the iron rice bowl system cannot be laid off, while those under the new contracts can. Unfortunately, those on the new contracts are generally better workers. There is huge resistance from those under the old system to change

There are tensions between the capitalist and socialist ideologies, meaning that while the economy is rapidly changing, political reform is lagging behind.

"Social endurance" needs to be recognised, as too much change too quickly can have an adverse affect on the Chinese people.