China Mobile, a pay cut, these two terms together, resulting in a series of chemical reactions. July 22, China Mobile announced mid-year work conference on this year's pay cut plan, China Mobile executives more than two regular annual salary will be reduced by 50%, the provinces team members down to 40%, the Director level of management down 20 %. This is not the first time China Mobile pay cut, 2010, in accordance with the requirements of the SASAC, China moved from group level to all local branches, in accordance with the & ldquo; pay even lower five years, decreasing each year 10% & rdquo; the principle of start pay cut, now just over 5-year period, a new round of pay cuts have to start.
For China Mobile, the test of time in his wisdom came! As well as to the State is responsible, in advancing & ldquo; Internet + & rdquo; the process bear responsibility, reduce costs further acceleration; also responsible to shareholders, so that performance to maintain growth; also responsible for employee pay cut under the tide of how to enhance the cohesion of the people enthusiasm. How to grasp the delicate balance between these good, the problem is China Mobile faces.
IT Times reporter: Hao Junhui Qian Li Fu, Sun Yan
Down down down
You do not know Mobile
Has already paid up only KPI underperformed CPI
& Ldquo; I move into for six years, in addition to the rank of adjustment, no rise in salaries. & Rdquo; Li Shuang (a pseudonym) students after graduation entered the Fujian Mobile, a municipal company. For six years, in addition to the normal post basic wage rise could have a few hundred dollars of gains outside, almost no increase in income. Today, he is a municipal employee Kong Mobile 7, the hand about 7000 yuan per month. And he graduated with Internet companies into those students, a difference of many.
Although local, Li Shuang income fairly good, but he felt that this price is very low wages, running his mouth market, weekends, holidays, overtime is routine, but overtime this content to let him graduate and friends are embarrassed to say: night in a nearby village to help the user set up a stall to change 4G card. Three operators to intense competition in the market consequences are endless KPI, & ldquo; hundreds of indicators, are up every year, it is difficult to complete, and sometimes can only try to do better than other municipal companies that do not rank nothing too far back. & Rdquo; last year, Li Shuang to want to quit, but the local Internet company much good, to the north of Guangzhou & ldquo; drift & rdquo; with and difficult to resolve, the recent pay cut along with the wind, he started to worry, & ldquo; He said the drop is only salary level and above cadres, but who know will not affect those of us grassroots employees? & Rdquo; go or stay, Li Shuang still entangled.
In 2001, Zhang (not his real name) secondary school after graduation to enter the Nanjing move in the customer service department. Although there are formal establishment, but because education is not high, more than a decade, job rating has not changed much, and this corresponds to the revenue lost early and ran CPI. In the beginning of this century, the income of 2,000 yuan in Nanjing, look considered to be very good, not too wound Rate 3 prefix, one month's wages in the not so you can buy a place in the center of the square, Zhang therefore be people envy. However, seeing the Nanjing housing prices from 3000 yuan / square meter to 5,000 yuan / square meter, from 5000 / sq m to broken million, and even now nearly 20,000 per square, the Zhang's income has edged up to 14 years after a month 3000 yuan.
It sounds incredible, but it is indeed a reality. Zhang came even after the graduating students, because basically undergraduate education, even graduate posts will higher than Zhang, naturally, higher than his salary. & Ldquo; In mobile, ascending Kong hard, and performance should be the relationship between education, resources are tilted to the front of the market. & Rdquo; I heard that China Mobile only for the pay cut division level and above leaders, front-line employees to appropriate salary, Zhang hopes Pratt & Whitney can turn such as their own crowd.
Sad reminder of the transfer of the contract work: a positive, but less money
Starting in 2014, China Mobile provincial company launched a large-scale dispatch employees to positive action. According to July 2013 Human Resources and Social Security issued a "dispatch Interim Provisions" (hereinafter referred to as & ldquo; "prescribed" & rdquo;) requirements: & ldquo; An employer shall be strictly controlled labor dispatch number, using dispatched workers shall not exceed 10% of its total employment. & Rdquo; media has Accordingly statistics, China Mobile has nearly 300,000 dispatched workers, labor relations need to be adjusted.
China Mobile workers are mostly divided into A, B, C, D four categories, wherein, A class inception of China Mobile, China Telecom from the team, and now have a basic contract & ldquo; no fixed term & rdquo; staff, B since 2000 recruiting class for the formal contract employees, dispatched employees collectively class C, and class D is called & ldquo; & rdquo ;. outsourcing The so-called labor relationship adjustment, that is, to the official or employee Class C Class B contract employees, or move into the outsourcing company.
However, a lot of hope for more than a decade of original dispatch employees, there is no longer positive imaginary aura.
& Ldquo; to the transferred staff salaries drop subsidies, after transfer of the contract to ensure that wage cuts by not more than 10% & rdquo ;, province moving company in this year's transfer of the contract work answering the PPT, so reply to dispatch employees to take a pay cut concerns, Under the program, to turn hires, new labor dispatch seniority subsidy of 50 yuan per year, a maximum of 1,000 yuan, a pay cut in order to reduce the impact caused.
In total wages the same premise, in fact turn hires the entire increase in the number of mobile workers, the average wage decreased only natural. Fujian Mobile uses a turn down gang recruits way pay cut. Some turned out to be 5 dispatch staff posts, become automatically lower after positive first-class 4 post for the transfer of these recruits, not only wages should be fewer, the actual hand wages less. & Ldquo; we turn hires the municipal level up is down 3,000 yuan, I'm talking about your money. & Rdquo; Li Shuang told the "IT Times" reporter.
In fact, in recent years, China Mobile has been in gradual implementation of integrated dispatch and formal wage employees, the difference between the two is mainly reflected in the payment of benefits and various insurance companies. Usually full-time employees to pay a higher base, and dispatch employees are generally paid according to the average wage level of society, and the payment of the project is slightly different, full-time employees will be added fund and corporate pension supplementary insurance companies, but individuals must also be deducted a certain proportion. In a move certain municipal salary scheme, the proportion of individuals and companies pay 23% and 43%. So for turn recruits, since cross gold cross gold base and the increasing proportion of monthly personal deduction of costs are rising, your money naturally less, but the company has to bear the tax increases the number increases. & Ldquo; the company's grassroots labor costs may increase, but the staff did not increase the wages of the hand. & Rdquo; Li Shuang felt as if both parties are satisfied with this result.
Expert: pay system is not fully market-oriented
& Ldquo; Over the past ten years, operators of benefit achieved substantial growth, especially China Mobile. But did not fully market-oriented mechanism on salary, and benefits are not fully linked to the effectiveness of a particularly good time, pay levels do not reflect market conditions. & Rdquo; Chen Zhigang communications industry experts for the "IT Times" reporter said. Li Shuang also told reporters that the general line channel manager and client manager's salary, can only be considered at the local lower middle.
March 2015, Guangdong Mobile is an internal document online exposure, the document said, because the company expenses for transportation, communications, travel expenses and focus adjustments, led to some negative emotions employees. The document also said, & ldquo; Over the years a simple explanation of a & lsquo; SASAC of China Mobile wage total control & rsquo; has become increasingly questioned and discontent caused by employees, the vast majority do not understand why corporate profitability continues to increase the cost of living is increasing, but wages continued to decline. & Rdquo;
Guangdong Mobile share of internal documents mentioned in the & ldquo; SASAC of China Mobile wage total control & rdquo ;, refers to the "central enterprises total wages budget management approach", this system around the year 2008, the beginning of 2009 in some the implementation of central enterprises, state-owned enterprises in order to solve the existence of different groups of workers assigned wage structure is irrational, partial wages in monopoly industries is too high. Central enterprises need in the beginning of time to the SASAC reported this year's wage budget, the SASAC central enterprises audit reported budget is reasonable, and to develop appropriate control measures. Since the implementation of this provision, the total amount of wages for the control, so a few years ago China Mobile's wages and not with the growth performance and get promoted. One person China Mobile provincial three managers resigned in 2013 in his resignation letter, wrote: & ldquo; "approach" between corporate performance and employee benefits cut down a ravine, a direct result of the growth in efficiency in recent years , salaries declined year by year. & Rdquo;
Today, after five years of continuous decline, China Mobile will usher in a new round of pay reform.
Pay cuts will lead to & ldquo; left wave & rdquo; it?
Central enterprises pay cut of two magic spell
This year the central enterprises to disclose a pay cut plan is not just a China Mobile, as well as energy and other sectors of the central enterprises, such as coal enterprises Shenhua, PetroChina, Sinopec, State Grid. Shenhua had said publicly that this year the total amount of wages reduced by 10%, while the magnitude of the oil pay cut of about 15%.
The reason why these central enterprises pay cut, a weight factor in order to comply with & ldquo; ergonomics Hook & rdquo; (enterprises with total wages and economic benefits linked) regulations. & Ldquo; ergonomics Hook & rdquo; practices in general practice SASAC central enterprises, has many years of history. However, in June this year, the SASAC issued "further improve the central enterprises increase revenue and reduce work-related matters," which stressed the need to strictly implement the total wages and benefits linked to the mechanism, an increase of total corporate wage increase shall not exceed the benefits, benefits decline of total enterprise wages must fall.
For China Mobile, the previous development has been & ldquo; & rdquo ;, but the elephant gallop in 2013, 2014 landslide occurred. In 2013, China Mobile net profit of 121.7 billion yuan, down 5.9%, the first time full-year decline in their profits. In 2014, China Mobile's net profit to drop 10.2%. In the first quarter of this year, China Mobile's net profit is still in decline. In accordance with the & ldquo; ergonomics Hook & rdquo; principle, China does not take a pay cut to move unexpectedly. With a large number of the dispatch staff to positive, rising labor costs, 2014, labor costs, China Mobile was 36.83 billion yuan, compared to an increase of 2.45 billion yuan in 2013, labor costs in the proportion of total revenue rose from 5.5 percent to 5.7 %.
There are concerns about the industry, at the same time reduce costs speed necessary to maintain profit growth, but also a substantial pay cut, I am afraid that will lead to multiple carriers indicators in the assessment of conflict, the prospects of junior staff concern.
Leading down, and employees a pay raise?
For this pay cut, China Mobile Group gives the argument is: not Heavy, its spokesman said, & ldquo; layers of the company will not take a pay cut, but the principle of performance-related pay, will pay an appropriate line to staff tilt. & Rdquo; this income has to stop before moving frontline staff brings hope: perhaps salary?
& Ldquo; The pay cut has nothing to do with the front-line staff, the background is the SASAC to narrow the income difference between managers and employees, it is impossible to reduce employee wages, salaries will reduce managers. & Rdquo; Fu Liang independent telecommunications analyst expressed.
In January this year, "the central management enterprises who pay reform program" (the "reform") began, the purpose of "reform" is to suppress the central corporate executives get extremely high salaries, narrowing the gap between the central enterprises internal distribution. Under the reform program, salary structure after the reform of central enterprises responsible person from the basic salary plus performance to basic salary, salary plus performance incentives term income, gross income does not exceed 7-8 times the average wage of the employees, the current situation is, this gap is about 12 times.
But this good will can narrow the income gap between executives and junior staff of the executive's salary subsidies down to frontline staff who is still unknown.
July 24, in & ldquo; Communications People Forums & rdquo;, it was posted a paper notice, & ldquo; according to the provincial company "on the adjustment of the low rank of staff salary structure notice" (HR  No. 103) file requirements, from July 2015, rank 1-7 on staff salaries and payments for structural adjustment, as follows: a fixed income. 1-7 grades (from low to high) employee's monthly basic salary remained unchanged month evaluation bonus calculation base adjustment from 80% of the basic salary of up to 100% of the basic salary; Second, changes in income. 1-7 rank employees annual performance bonus amount should be sent employees annual performance bonus = base & times; employee performance bonuses differential coefficient & times; Employee Performance Level award coefficient & times; 2/3. & Rdquo;
& Ldquo; in the end it is up or drop it? & Rdquo; the person who posted a bit confused. Who was following the thread that is up, because the monthly bonus paid in full, it was said, is down, because only two-thirds of year-end awards, Youde said something the other person is, & ldquo; this not that (monkeys eat bananas) to chop and change it? & Rdquo;
Another mobile workers complained that junior staff salary depends mainly on the performance bonuses, to more than getting rewards, first of all have to contribute good performance, but now has a grassroots indicators layers of overweight, overwhelmed, & ldquo; This is clearly a plus task rhythm ah. & Rdquo;
Competitiveness will further weaken it?
In addition to a pay cut for grass-roots workers uneasy, but insiders are more worried about is that this will further weaken the competitiveness of operators.
& Ldquo; it (move a pay cut) itself is difficult to evaluate with good or bad, I think it can not conceal another tendency with a tendency, not because of inter-operator pay some early breaking off another job to the other side. If you pay too much down, we will further develop and enhance the backbone enterprises enthusiasm adversely affected. & Rdquo; Beijing University of Posts Overtapped to "IT Times" reporter said. He also said that operators now pay and some of the industry compared to other industries, in fact, already low, & ldquo; I have left a lot of students from the operator, went to Internet companies. & Rdquo;
2014, carriers began to leave the tide, especially in China Unicom & ldquo; & rdquo ;, the hardest hit several executives leave, the latest news is that once helped create the original Unicom Zhejiang Unicom introduced the iPhone manager in Britain tao , leaving Unicom. China Mobile is the backbone of the middle leaving the mainstream crowd, "IT Times" reported that in 2014 he had pointed out that Beijing move more than five years of entry graduate or leave Turnover up to 80%, and overwhelmed get, whether It will lead China's mobile executives also appeared to leave the tide it?
Zhigang to take a pay cut could bring operators departure tide worried, & ldquo; compared to the TMT industry, operators to take the provincial department manager and general project manager may pay Internet companies to take similar, but also the latter option, stock. Now, operators in the industry belong to the lower level of pay. & Rdquo; the operators who Zhigang know, many people have chosen to leave, & ldquo; including the Director, the Deputy Director. & Rdquo;
In Nanjing, a number of Internet companies and equipment manufacturers out up to half the price doubled, to move the company to dig people, & ldquo; a lot of people left, I feel there is more promising. & Rdquo; Wen-liang (a pseudonym) said, & ldquo; now only just moved into the people, but also have more passion, hope here to show fist, but I am worried that, over the past few years, they will be disappointed. & Rdquo; Wen-liang is a long-term concern telecommunications operators analyst.
The impact of the brain drain for operators is enormous, especially to embrace the Internet in the way of transformation operators, and Internet companies who rely on competition?
Overtapped believes, though unable to stop the pay cut, but not to keep things simple operation, must take the incentive to do, we can not form well or do poorly regardless of remuneration are & ldquo; one size fits all & rdquo; decline. & Ldquo; well, we should reward high, or a business loses its initiative, & rdquo; Overtapped said.
In Fu Liang opinion, the telecommunications industry is now only three operators in the world, as well as virtual operators, public funding of broadband providers, Internet companies, etc. but also external, operators are facing more competition than in the past, operators must to compete for talent. & Ldquo; only one way, establishing a modern enterprise system, in accordance with market principles handed down. & Rdquo; Fu Liang said.
Temasek experience or learn from it by the Singapore Ministry of Finance is responsible for supervision, although the government is the major shareholder, but not necessarily the state executive officials origin, the relevant government departments to do is to appoint and dismiss members of the Board, rather than state executive appointment .
& Ldquo; The key is to establish a mechanism to pay higher or lower cadres, not only on not down, to avoid the mess; not only under Yigun killed so real to officers who cold heart. & Rdquo; says a mobile workforce.