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Curbing overcapacity should not mean job losses, Premier says

Updated: May 23,2016 11:35 PM

Premier Li Keqiang said enterprises should ensure that redundant staffers don’t end up unemployed during the process of cutting excess production capacity, during an inspection tour to Wuhan Iron and Steel Corp (WISCO) on May 23. WISCO will cut steel production capacity by 4.42 million tons this year. We have to ensure basic pensions for those in difficulty, the Premier said.

While inspecting a branch factory, the Premier said that reform is a fundamental way for State-owned enterprises (SOEs) to achieve growth. Many SOEs participate in projects that are not related to their core business, and there are too many management layers, the Premier said.

The Premier urged strengthening core businesses in SOEs through system and mechanism innovation.