China expects to change the existing personnel system in its 1.3 million state-owned institutions into a contractual one within five years, Chinese Vice-Minister of Personnel Su Huiguo said in Beijing Sunday.

Su made the remark at a national meeting of personnel officials, adding that the reform is critical for about 30 million employees.

This means that state-owned institutions will make employment contracts with their employees during the next three years so as to abolish the actual lifelong tenure system.

The vice-minister said institutions are required to redistribute their positions in accordance with the actual need.

A number of positions will become redundant as the reform is underway, meaning that many employees will be laid off.

The government expects the employees of institutions to be promoted through fair play, Su said.

The reform of personnel system will go along with the reform of the salary system, he added.

The government will speed up working out supplementary policies for the reform, he said.

(Xinhua News Agency January 6, 2003)