Factory workers in China’s coastal regions feel impact of economic slowdown

Nearly 100 workers at a garment factory in Panyu, Guangdong, staged a sit-in on 21 December, protesting wage arrears and unpaid social insurance contributions. Workers claimed that Hong Kong-owned, Bogart Lingerie Ltd., which specialized in producing sportswear and underwear, had violated the law by paying wages on a three-monthly basis, and had failed to pay their social insurance contributions even though the requisite amount had been deducted from their salary.

The management took a hard line and ignored the protest, and even refused to pay workers’ wages in arrears if they resigned. The workers filed a complaint with the labour bureau but did not receive any response. Meanwhile, management lowered the piece rate, reducing workers’ income even more.

Also on 21 December, hundreds of workers at the Zhuwei auto parts factory in Jiangsu staged a protest at the suspension of production and wage arrears. Workers blocked the road in front of the main factory entrance, leading to traffic congestion.

The workers demanded an explanation for the factory management’s failure to guarantee them work. In online posts, employees said they had been forced to go on extended unpaid leave. When it was clear that the company was not sending anyone to negotiate, the workers sought help from the government but to no avail. Indeed, some workers claimed they were beaten by police.

Several garment workers at the Toyo Fashion company in Fuzhou, Fujian, staged a sit-in on 31 December to demand relocation compensation. Workers stated that the factory, previously run by a Japanese company for more than ten years, had evaded bankruptcy by transferring its assets to a Chinese owner last year. The new owner now planned to relocate production facilities, forcing the workers to resign with no compensation.

Dozens of police officers were deployed to prevent workers from entering the factory while private contractors removed machinery, workers claimed.