The Workers' Movement in China - China Labour Bulletin
The Workers' Movement in China - China Labour Bulletin
The Workers' Movement in China - China Labour Bulletin
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THE WORKERS 35<br />
- Several thousand workers at Chengdu’s Yunnei Power surrounded<br />
the company’s offices on 23 August 2007 protest<strong>in</strong>g<br />
aga<strong>in</strong>st its offer of 1,800 yuan for each year of service <strong>in</strong> its f<strong>in</strong>al<br />
severance package. <strong>The</strong> orig<strong>in</strong>al SOE, a manufacturer of <strong>in</strong>ternal<br />
combustion eng<strong>in</strong>es <strong>in</strong> Chengdu, was merged with Yunnei Power<br />
<strong>in</strong> Kunm<strong>in</strong>g <strong>in</strong> 2004. In July 2007, the company said that it would<br />
auction off the site of the old plant and relocate; <strong>in</strong> August, it<br />
announced mass layoffs with severance pay pegged to the number<br />
of years worked at the current employer, ignor<strong>in</strong>g the years<br />
employed at the old company.<br />
At least seven SOE disputes <strong>in</strong>cluded allegations of corruption and<br />
embezzlement of state assets by managers dur<strong>in</strong>g the process of<br />
restructur<strong>in</strong>g. <strong>The</strong> lack of transparency and the absence of a unified or<br />
effective regulatory framework allowed SOE managers to siphon off<br />
billions of yuan <strong>in</strong> state assets while pay<strong>in</strong>g laid-off workers m<strong>in</strong>imal<br />
compensation. As the examples below demonstrate, demands for <strong>in</strong>vestigation<br />
<strong>in</strong>to alleged corruption on the part of managers were often<br />
more important to the workers than their demands for higher<br />
compensation.<br />
- More than 1,000 workers at the Y<strong>in</strong>tai Textiles company <strong>in</strong><br />
Changsha, Hunan, staged a two-day sit-<strong>in</strong> at the ma<strong>in</strong> gate on 25<br />
and 26 July 2007 to protest the alleged corruption of senior<br />
management. <strong>The</strong> workers claimed that after the former SOE was<br />
bankrupted and turned <strong>in</strong>to a private jo<strong>in</strong>t-stock company <strong>in</strong> the<br />
mid-1990s, the former plant manager became the general manager<br />
of the new firm, with senior management controll<strong>in</strong>g threequarters<br />
of the equity. In the more than a dozen years s<strong>in</strong>ce<br />
restructur<strong>in</strong>g, over 1,200 workers had been laid off or <strong>in</strong>ternally<br />
retired. <strong>The</strong> monthly wages of the rema<strong>in</strong><strong>in</strong>g workers were only<br />
600 to 700 yuan. Workers had repeatedly petitioned government<br />
offices and the legal department of the procuratorate, but to no<br />
avail.<br />
- Between 14 and 16 September 2007, up to 10,000 workers at<br />
the Luoyang White Horse Group <strong>in</strong> Henan staged strikes and road