A national labor official has denied previous reports that the government will increase state workers' salaries while it drafts a new law on work wages.

Qiu Xiaoping, director of the Labor and Salary Division at the Labor and Social Security Ministry, said the earlier reports were incorrect, according to an article in the Southeastern Express.

The government will not intervene in setting salaries at enterprises, which are decided mainly by market forces, to avoid backsliding in the executive reform, Qiu said.

He added that the law is expected to help deal with current problems such as low salaries for frontline workers, slow pay rises and unpaid salaries. A normal salary rise mechanism will be built under the guidance of the law, he said.

Qiu also said the government for the first time would consider the fluctuation of the Consumer Price Index (CPI), a major inflation gauge, in adjusting salaries.

He also said the law would enable employees to discuss salary levels with employers, an area where only employers currently have a say.

(CRIENGLISH.com January 21, 2008)