The local treasury/Budget, is empty, the bus driver is owed 8 months' wages
15:15, 04/11/21
Chinese media reported that bus drivers in Pingdingshan City, Henan Province went on strike on Monday (November 1) because they had not received wages for eight months. This problem is attributed to the fact that the financial situation in many Chinese localities may have been exhausted.
"Company leader: Please disband.
Woman: CEO Lan, do your words count?
Company leader: If I don't keep my word, can you slap me next time?
Woman: Okay, I won't slap you, just keep your word.
A video circulating online shows a woman standing in front of a bus, having a heated argument with a group of company leaders. Another woman was filming and consulting a leader and asked him to fulfill his promise [pay salary].
By comparing images online, a reporter from Radio Free Asia (RFA) said that the company leader called 'General Director Lan' in the video is Mr. Lan Hoi (Lan Hui) - Secretary of the Party Committee. cum Chairman of Binh Dinh Son Public Transport Company Limited.
In another video, a group of employees squatted in front of the company's parking lot, trying to stop a bus from leaving, some of them quite agitated.
Debt of salary of civil servants and public employees is prolonged
The publication 'Tan Hoang Ha' of Jinan Daily quoted netizens as revealing, bus drivers and employees of Binh Dinh Son public bus company, a 100% state-owned company in Ha province. Nam, went on a collective strike and demanded that the company pay workers' wages.
According to a driver who was demanding wages during the strike, Binh Dinh Son company owed the bus driver salary for 8 months, owed the salaries of other logistics staff for more than 1 year, their social security money was only paid. paid until 2017.
The company claims that it will pay 4 months salary to all employees within a week, but it is not known whether the employees will receive the promised salary or if this salary will be paid. Can it be converted to cash? Converting to cash means that the company can pay wages in kind, something other than yuan (CNY).
On Tuesday (November 2), The Paper quoted an employee of the Binh Dinh Son City Citizens Hotline as confirming that the local bus had indeed stopped working on Monday. bus lines resumed on Tuesday, after a day. The Binh Son City Traffic Office has stepped in and related matters are currently being coordinated.
Public information shows that Binh Dinh Son Public Transport Company was established in 1958 and is a state-owned public welfare enterprise primarily engaged in urban public transport. In 2012 and 2020, employees of this company reported 19 times of "persistent salary debt problems".
Why is the government so late?
After the incident broke out, many netizens expressed anger. Most netizens blamed the local government for this situation because this is a local government business.
However, Zou Tao, a financial commentator based in Shenzhen, told RFA that the authorities are probably not unwilling to help, but that they themselves are really "short of money".
The People's Bank of China (PBOC) will inject 1.2 trillion yuan ($174 billion) into the financial system to rescue the Chinese economy, which has been plunging because of the Wuhan pneumonia epidemic.
The coffers of many local governments in China have been empty. (Image: Getty Images)
"Binh Dinh Son is a coal-producing city. Coal accounts for a high proportion of local budget revenue. However, the state has recently introduced policies to keep coal prices down... If local governments don't have it, money, they can only prioritize resources to pay civil servants or some big projects."
Of course, the bus drivers and staff here are not civil servants, and these are not the big projects that can immediately help the local source of revenue or simply disburse the budget to increase the income. GDP performance for local government.
However, Mr. Zou Tao analyzed that Chinese urban people in general rely heavily on public transport. Once the public transport system is shut down, production and many people's lives will be severely affected, with the risk of erupting into mass incidents that threaten local officials.
This case is just a slice reflecting the tight and tense financial situation of localities in China. The "City Debt Ratio Ranking" co-published by the new media channel 'Databao' of the Securities Times (STCN) and China's Tencent Finance shows that the debt ratio of most major cities in China The country has already passed the warning threshold, while the debt ratios of some less developed cities are even more shocking.
Empty treasury/Budget, local government debt sets new record
According to a recent data, the financial revenue of 31 provinces and cities nationwide in the second quarter of China was negative, only Shanghai was positive. Even the traditionally high-income provinces of Guangdong, Fujian, and Zhejiang are in dire straits. It is not difficult to see that these provinces are being rescued by the central government.
In fact, the province's government and state-owned enterprises are not able to pay salaries for civil servants, public employees, and laborers. There have been governments in many localities that are heavily indebted and cannot even pay teachers' salaries. Recently, teachers and civil servants in Liaoning, Henan, and Anhui took to the streets demanding pay. The missing salary from 2007 to now is just over 70 million CNY, but the government can't afford it, what could be the cause?
During the recent flood in Henan, the government announced a grant of CNY 50 to each farmer who had "no income". "If a farmer's family has a dead pig, they will be compensated CNY 80 each." This amount is pitifully small compared to the damage farmers suffer, and ridiculously small for a country with the second largest economy in the world.
Netizens have given a lot of evidence and inferences that: The government ordered the discharge of reservoir water without notifying the public. If the accident is due to negligence in the performance of official duties, then they should normally stand up to compensate at the market price. If the treasury is full, why can't the government be generous once, while reducing the pressure of foreign criticism but also gaining popularity? Is the CCP's stinginess here proof that they can't afford to compensate?
Meanwhile, local debt from special bond issuance has just set a new record. In the first 10 months of 2021, the scale of new debt issuance by local governments surpassed CNY 6.48 trillion, higher than CNY 6.44 trillion of debt issuance in the whole of 2020. Local government debt China's side has officially set a new historical record.
Các phương tiện truyền thông Trung Quốc đưa tin, vì 8 tháng không nhận được lương, các tài xế xe bus ở thành phố Bình Đỉnh Sơn, tỉnh Hà Nam đã đình công hôm thứ Hai (01/11). Vấn đề này được cho là do tình ...
www.ntdvn.com
vneconomy.vn
