Percentage of Wage Income in GDP Falls

(Beijing) - The proportion of wage income in China's gross domestic product dropped 20 percentage points from 1978 to 2005 while the ratio of returns from investments to GDP rose 20 percentage points during the same period, according to a labor union official.

Zhang Jianguo, director of the Collective Contract Department of the All China Federation of Trade Unions (ACFTU), was quoted by Beijing News as saying that the key to wealth distribution reforms is to raise workers' wages. 

A recent survey by ACFTU showed that 23.4 percent of employees did not have a pay raise in the past five years and 61 percent of employees believe the biggest social problem is the low wage level for ordinary workers.

About 65 percent of labor disputes were about wage and benefits, according to Zhang.