NPC, CPPCC Annual Sessions
Report: Global Financial
Li Zhaoxing, spokesman for the Second
Session of the 11th National People's Congress (NPC), answers questions
from journalists during the news conference on the Second Session of the
11th NPC at the Great Hall of the People in Beijing, capital of China,
March 4, 2009. (Xinhua/Pang Xinglei)
BEIJING, March 4 (Xinhua) -- China's Labor Contract
Law helps the country to tide over the current financial crisis as employment
had become a key to "living through the crisis in the long run," said a
parliament spokesman here Wednesday.
"The current difficulties faced by Chinese
enterprises were mainly a result of the global economic downturn," Li Zhaoxing,
spokesman for this year's annual session of the national legislature, told a
Li made the remarks in response to a question that
the Labor Contract Law was to blame for the corporate difficulties.
He said the law requires firms to award open-ended
contracts to employees who have worked with the companies for 10 years or more,
as well as to workers who have completed two fixed-term contracts, to protect
them from dismissal without reasons.
It also mandates companies make larger contributions
to pension and insurance funds, because many firms had previously derived
profits from violating labor rights.
But some people have said such regulations would
reduce labor flow, weaken enterprises' vitality and increase the cost of human
resources. Some companies even fired employees to avoid awarding them open-ended
contracts before the law took effect as of January 2008.
According to Li, the implementation of the law for
the past year was "generally good" and "more efforts should be made to carry it
"In the current situation, more efforts should be
made to coordinate the relationship between employers and employees and
encourage them to work together to overcome hardships," he said.