Li tells SOEs to end excess capacity, boost quality
Premier Li Keqiang urged State-owned enterprise (SOEs) to remove excess production capacity and increase quality.
“Reform is the fundamental way for SOEs to grow and prosper. But when cutting excess capacity, superfluous workers must be transferred to other jobs instead of being laid off,” Li told the Wuhan Iron & Steel Group company on Monday during a visit to Hubei province.
Li appointed Wuhan as a pilot SOE to reduce excess capacity and transfer redundant workers to other posts with financial and policy support from the central and local governments.
Wuhan Iron & Steel had 51,000 employees by the end of last month, 72.8 percent of the total in July last year. The company subsidizes these workers each month.