Development of Avoidance Clause in Multiple Central Enterprises and Social Recruitment | State owned Assets | Clause

Between August 1st and August 20th, 2023,

The official WeChat official account of the State owned Assets Supervision and Administration Commission of the State Council "Small State owned Assets Reform"

Nearly 30 central enterprises have issued social recruitment announcements consecutively.

Among them,

More than one central enterprise

Specific requirements have been made for avoiding close relatives.

Some officials from state-owned enterprises without restrictions have also stated that,

To uphold virtue without avoiding kinship,

Mainly it depends on the person who comes to apply,

Whether one's own conditions are strong.

How strong is the enforcement of the avoidance clause?

The requirement to avoid close relatives was clearly stipulated as early as 2001 in the Provisional Regulations on the Appointment and Official Avoidance of Leaders in State owned Key Enterprises issued by the Organization Department of the Communist Party of China Central Committee and the Enterprise Work Committee of the Communist Party of China Central Committee.

For central enterprises, implementing the above avoidance principles does not mean completely eliminating them. From the recruitment of these central enterprises, the enforcement of "avoidance clauses" varies: some central enterprises are one size fits all, while others only set restrictions on positions.

For example, when a company directly under the Shanghai branch of China Grain Reserve Management Group Co., Ltd. issued a recruitment notice, it stated that "applicants applying for positions comply with the principle of job avoidance";

China Electric Power, a subsidiary of State Power Investment Corporation of China, and Huaneng International Engineering Technology Co., Ltd. have stated that those who are married, have direct blood relatives of themselves or their spouses working in the unit they are applying for, or have collateral blood relatives or close relatives within three generations working in the recruitment department, are not allowed to apply to participate in the recruitment of their unit.

Meanwhile, the human resources manager of a central enterprise gave an example that technical and sales positions do not need to strictly follow this requirement.

He said, "For example, in our workshop, we work on a piece rate basis and there is no exchange of rights, so we do not make any avoidance requirements for recruitment. There are many father son relationships between couples in the workshop."

Insider: Juxian does not shy away from relatives

Regarding the phenomenon of "inheriting the father's business from a son", a person from a state-owned construction enterprise said, "In theory, our industry does not oppose the next generation joining our company. We have four generations working in the same company for the longest time. However, nowadays, fewer and fewer next generations are willing to inherit the father's business from a son."

A person in charge of human resources at a state-owned enterprise stated that due to the harsh working environment, many people are not willing to apply. On the contrary, sometimes the people recommended by the system are more loyal and identify with the corporate culture of the state-owned enterprise. Due to the influence of their parents, the people recommended in these systems have a stronger sense of belonging and will not switch jobs as their abilities become stronger.

He said, "Although market-oriented recruitment has always been encouraged, for a company, employees lack a sense of belonging, are always restless, and do not want to stay in the company, which is not a good thing."

Based on this, he still welcomes system insiders to recommend candidates for job applications. In his opinion, if a candidate does not shy away from relatives, it mainly depends on the candidate's own qualifications.

Moreover, there are also constraints on assessment requirements within the central enterprise. Taking the research institute under the central enterprise as an example, if the research results cannot be developed, the annual salary of the dean will be affected, directly challenging the interests of the person in charge. So, if the dean is assigned close relatives with poor research abilities, the research institute cannot agree.

No room for covert operations or exchange of benefits

Previously, the Shandong Tobacco Monopoly Bureau stated in a recruitment announcement that applicants are not allowed to apply for positions that constitute avoidance of appointment as cadres after being hired, nor are they allowed to apply for positions in the unit system where individuals have marital relationships, direct blood relationships, collateral blood relationships within three generations, or close marriage relationships with them as leadership members. Meanwhile, tobacco bureaus in multiple regions also have similar regulations.

This was once considered a powerful move by Shandong Tobacco Bureau to break the shackles of the hereditary system of good positions within the system and select capable, fair, and honest talents.

In fact, regulations such as "direct third generation bloodlines are not allowed to apply" are not new regulations for tobacco bureaus in various regions. Meanwhile, government departments, state-owned enterprises, and public institutions all have similar regulations.

There is no lack of regulation at the institutional level to prevent inbreeding and nepotism. Many people do not know that this is an existing regulation, but it actually reflects a question: why is something that should be common sense not popularized? This may indicate that the avoidance system has not been emphasized and implemented enough in some places and departments.

In the past, people believed that "inbreeding" in enterprises would only lead to unfair employment and become the "family world" of some people. In some well paid units, business leaders may use their power to seek benefits for their children or relatives. In fact, this is only one harm of inbreeding, and the greater harm is the risk of enterprise development.

According to the report, a couple in a third level subordinate unit of a central enterprise had previously worked in procurement and finance positions respectively. One person was responsible for buying goods, and the other was responsible for paying for the goods. Eventually, the couple cooperated internally and externally, paying money to purchase fake goods. After being discovered, they fled to other places and were eventually arrested by the public security organs.

That is to say, endangering the development of enterprises and causing damage to national and employee interests is an important factor in avoiding the implementation of clauses. The statement by insiders that "selecting talents without avoiding relatives" may blur key points and mislead the public.

In reality, it is not ruled out that the family members of cadres and employees in central enterprises have "talents". If they are hired, it may also be beneficial for the development of the enterprise. But objectively speaking, many central enterprises have great achievements and there is no such thing as being unable to develop without one person. There are so many talented people in the world, why do we have to use the relatives of enterprise cadres and employees? If you are truly a talented person, with so many enterprises in the world, you will be welcomed wherever you go. If you go elsewhere for employment, you can also reduce the suspicion of falling behind in the fields.

One core element of the above-mentioned avoidance clauses for central enterprises is to leave no room for covert operations and exchange of interests. Manage key positions, departments, and even some key companies.

It is impossible to achieve absolute fairness by institutionalizing the elimination of inbreeding. The avoidance clause has been widely welcomed by the public, providing a relatively fair competitive environment for everyone. The recruitment of employees by central enterprises is to make precise efforts in the "avoidance" clause, eliminate corruption in employment and enterprise development risks, and not let "selecting talents without avoiding relatives" become an excuse to undermine the "avoidance principle". Even for unrestricted central enterprises or positions, the phrase "selecting talents without avoiding relatives" should be used with caution to ensure the normal and orderly employment of enterprises.

Strictly speaking, the saying "selecting talents without avoiding relatives" is the result of insufficient social management conditions during a historical period, with the core being "rule by man". Nowadays, the rule of law is emphasized. As a central enterprise, there are more fair recruitment procedures and norms that are sufficient to meet the needs of enterprise development. For central enterprises, the so-called "selecting talents without avoiding relatives" should be thrown into the pile of old papers.