An Empirical Research On Replacement For Redundant Staffs During The Reform Of Shenzhen SH Group

Reform in state-owned enterprises is one of the most important and difficult issues in the nation's economic system reform. Presently to establish a modern enterprise system in adaptation to the market economy demand becomes the basic target in state-owned enterprises' reform. As the reform develops in depth, l4ots of problems accumulated and concealed before now come out, one of which is redundant staff. Statistic shows that there are about 20-30 million redundant staffs in the nation's state-owned enterprises. The country mainly replaces the redundant staffs in the state-owned enterprises by implementing re-employment project but the redundant staffs still maintain labor relationship with the enterprises, in a certain degree, we can not say that the problem has been solved finally and the redundant staffs have been replaced well. How to replace the redundant staffs now becomes one of the troublesome issues during the course of state-owned enterprises' reform in-depth. In this paper, I took Shenzhen SH Group, a state-owned enterprise established in 50th of last century, as a real example and carried out empirical research on replacement for redundant staffs during the reform. This paper consists of three parts: Firstly it introduced state-owned enterprise reform, the reason why the redundant staffs come out in state-owned enterprises by using SH Group's case as an example, the current situation and the urgent necessity to replace those people. Secondly after conducting a comprehensive survey, one way to replace the redundant staffs is to give them one-off money compensation on the condition that the state-owned enterprises will be released from the labor relationship with the redundant staffs after the compensation. This paper has conducted empirical analysis on how the SH Group established the replacement plan and carried out the plan. Finally by citing the actual situation of SH Group's redundant staffs replacement, this paper has focused on the issues to be noticed during the replacement course, the responsibility government should undertake in terms of replacement for redundant staffs and unemployed people. Generally speaking, I hope that by empirical analysis on SH Group's redundant staffs replacement in this paper, it can provide solution and reference for state-owned enterprises faced with the same problem.