With the degree development of China's market economy deep, enterprises' merger and acquisition is used widely as a main way of the reform of state-owned enterprises. However, the merger and acquisition of state-owned enterprises not only creates profit??Cbut also brings about risks. On the basis of collecting risk-related literatures, with "Tonghua Iron and Steel Incident" occurrence, this paper analyzes characterization and causes of staff relation risks in the merger and acquisition process of state-owned enterprises. According to risks appearance, risk prevention measures are provided and the early-warned system of staff relation risks is built in the merger and acquisition process of state-owned enterprises, so as to make for achieving a win-win development of enterprises and employees.
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