Over 1,000 state-owned enterprise workers protest against unfair layoff compensation

17 November 2006
More than 1,000 workers of a state-owned enterprise in Gansu province staged a protest against being laid off and given unfair compensation after the company was privatized.

The workers of Qingyang City Automobile Transportation Company besieged the company's office building on 15 November and did not allow more than 10 company officials to leave until dozens of police officers dispersed the workers in the evening on that day. The workers and the company officials resumed negotiation the next day, but no agreement has been made.

The workers accused the local government of colluding with the company which purchased the state-owned enterprise in order to gain from selling the state assets. They also felt angry of being laid off and given an unfair compensation offer after the company was privatized.

Qiangyang City Automobile Transportation Company was a state-owned enterprise with nearly 2,000 workers. Due to its ailing business, the local government had been trying to restructure the company by privatization since 2001. However, the company's workers' representatives congress (zhigong daibiao dahui) objected to the restructuring plan for five times, saying that would be detrimental to workers' interests. Earlier this year, the local authorities sent the working group of the restructuring plan to the company again and ordered to halt the workers' representative congress and sold the state-owned enterprise to a Shaanxi-based property company in September.

Since October, the local authorities forced 1,448 workers to sign an agreement to be laid off. The compensation offer was 800 yuan per working year. The workers were not satisfied with the compensation. Some workers who signed the agreement could not get the money when they went to the bank. They were told there was no money in the account. The workers then realised that they were tricked by the authorities. On 13 November, the workers went to the government working group of the restructuring plan and demand an explanation in two days. Without getting any reply, more than 1,000 workers went to besiege the company's office building on 15 November.

Sources: Radio Free Asia (17 November 2006), Mingpao (17 November 2006)

17 November 2006
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