Comments on Wages, Year-End Double Pay, and Annual Leave in State-Owned Enterprises [1] (July 1953)  (1) Two documents [2] are to be issued promptly by the Central Committee and the Administrative Council via official notices.  (2) In view of this year’s circumstances, henceforth all matters should be handled strictly in accordance with formal directives.  (3) Full account should be taken of possible adverse developments, and adequate explanatory work carried out.

Printed from Mao Zedong’s manuscript.  Notes  [1] These comments were written on a report dated July 4, 1953, submitted by the Party Leadership Group of the Ministry of Labor of the Central People’s Government to Mao Zedong and the Central Committee concerning measures for dealing with wages, year-end double pay, and annual leave in state-owned enterprises. In addition to these three comments, Mao also wrote on the report such phrases as “time-based and piece-rate systems,” “appropriate consideration for peasants,” and “famine and the Korean War.”  [2] Refers to the CPC Central Committee’s Directive of July 9, 1953, on Wages, Year-End Double Pay, and Annual Leave in State-Owned Enterprises, and its Propaganda Directive of July 30, 1953, on Wages and Year-End Double Pay in State-Owned Enterprises.

The Central Committee’s directive stated that this year the situation of natural disasters in rural areas was quite severe: by the end of May, more than 110 million mu of farmland had been affected, and over 40 million people had become disaster victims, requiring necessary relief. Although there was some hope for a temporary ceasefire in the War to Resist U.S. Aggression and Aid Korea, a ceasefire did not necessarily mean peace; the Chinese People’s Volunteers could not yet be rapidly withdrawn, and defense expenditures would not be significantly reduced anytime soon. Moreover, the country had already embarked on planned economic construction, necessitating the accumulation of funds for investment in industry, particularly heavy industry. Therefore, the Central Committee decided not to implement a comprehensive wage adjustment in state-owned enterprises: standard wages would remain largely unchanged, the system of year-end double pay (or bonuses) would be abolished, and the general introduction of annual leave would be postponed.  The Central Committee’s propaganda directive emphasized that the decision not to carry out widespread wage adjustments in state-owned enterprises this year, together with the abolition of year-end double pay (or bonuses) and the postponement of the universal implementation of annual leave, was entirely based on the long-term and overall interests of the working class. However, since these measures would fail to satisfy certain immediate and localized interests of the working masses, attempting to enforce them solely through rigid orders would inevitably encounter numerous difficulties. Accordingly, it was imperative to rely on thorough propaganda and explanatory work to ensure their effective implementation. As long as extensive and in-depth publicity and explanation were conducted among all cadres and workers, the implementation of these measures would not only avoid arousing discontent among the working people but also further enhance their level of consciousness and enthusiasm for labor.