Page 307 - SELECTED WORKS OF CHEN YUN Volume II.indd

SOLUTIONS TO PROBLEMS 305
to live on what they earn. In some joint state-private enterprises, the
capitalists and their representatives earn higher salaries than cadres of
equivalent rank in state enterprises. They are afraid their salaries may be
reduced. They feel they could not withstand the simultaneous shock of
socialist remoulding and a cut in pay. I can assure you that the government’s
policy is not to reduce salaries. Out of hundreds of thousands of capitalists
and their representatives, only a few whose salaries are currently too high
will have to take a cut in pay. And even then they will not have any trouble
making ends meet, so they too will support our policy. In small cities, some
capitalists earn less than their opposite numbers in state enterprises. What
should we do about them? The government’s policy is not to raise their wages
for the time being, because most employees in small factories and shops earn
less than those in state enterprises. When the pay of all workers and office
staff is raised, their pay will be raised also.
The capitalists and their representatives can be divided into several
groups. The first group earn more under the system of fixed interest than
they did under the system of “giving each of the four horses a share of the
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fodder”. Some of the people in this group experienced hard times in the
past. When business was bad and profits were low, they had trouble making
ends meet. Now that their enterprises have been converted to joint state-
private ownership, however, they are paid fixed interest on their assets. Their
income is secure, because the expenses of their enterprises are covered by the
government irrespective of profits or losses. The second group receive
approximately the same income as before. Generally, their enterprises earned
modest profits before conversion to joint ownership, and their salaries have
remained about the same.
The third group earns less since the conversion. This means not that
their salaries are low but that the profits of their enterprises were greater than
the fixed amount of interest they receive now. Also, while they used to be
able to draw their payment in advance, at any time until the books were
closed at the end of the year, the rules of state enterprises now prevent them
from doing that. Some, because they have fewer family members, have had
no financial problems despite the decrease in pay. Others, with large families
to feed, have had problems. Most of the latter were owners of small shops
and factories, and the government wants to help them. Family members who
previously helped out in a family enterprise should, for the most part, be
permitted to continue working there. If the enterprise cannot use them, the
special companies should help them find piece work to do at home or provide
them with temporary jobs. If that doesn’t solve the problem, the government
should consult with the local federation of industry and commerce and the