Tuesday, September 29, 2015

Mass lay-offs in Heilongjiang add to China’s coal industry woes

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The Longmay Mining Group, the largest coal mining company in northeast China, will lay off 100,000 employees, about 40 percent of its current workforce, over the next three months, company chairman Wang Zhikui announced last week.
The Longmay Group has been badly hit by the slowdown in the coal industry over the last two years. Production costs in Longmay’s mines are relatively high but coal prices have plummeted leading to a reported loss of six billion yuan last year despite a three billion yuan bailout from the Heilongjiang provincial government.
On 6 April this year, thousands of workers at Longmay’s Qitaihe Mine went out on strike demanding payment of three month’s wages in arrears. Two weeks later on 20 April, several hundred workers at apower company under Longmay went on strike after the company suddenly halted production. Soon afterwards Longmay announced plans to close another eight mines that were nearing the end of their production cycle.
Several thousand workers at the Longmay Qitaihe Mine protest the non-payment of three month's wages
Longmay’s problems are far from unique. The China National Coal Association reported on 23 January 2015 that more than 70 percent of China’s coal companies were making a loss, and there is little indication that the situation has improved this year.
CLB's Strike Map has recorded 57 strikes and protests in the mining industry so far this year, nearly all of which have been related to low pay, the non-payment of wages and benefits, or mine closures. Just in the last week, there were three separate wage arrears protests by miners in Shanxi, Henan and Shaanxi.
Most of these protests involved a few hundred miners, suggesting that it is predominately smaller coal mining companies that are affected, but there were at least half a dozen protests involving thousands of workers, including a strike by 3,000 miners in Chongqing on 13 May protesting the mine’s sudden closure.
The proposed layoffs in the Longmay group will certainly lead to more tension with the workers. The company claims it will manage the process through early retirements and re-employment programs but Longmay’s track record suggests the workers themselves will be forced to accept whatever they are offered.
Following the massive explosion that killed 171 miners in Longmay’s Dongfeng Mine in November 2005, local government and company officials forced the bereaved families to accept the compensation deal on the table as quickly as possible by threatening financial penalties for every day they did not.

Wednesday, September 9, 2015

Anger over China’s Deadly Workplaces after Warehouse Explosion

Anger over China’s Deadly Workplaces after Warehouse Explosion

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A series of chemical explosions on August 12 at a warehouse in Tianjin is shining a spotlight on dangerous workplace conditions and precarious employment relations in China. Photo: Xinhua.
A series of chemical explosions on August 12 at a warehouse in the northern city of Tianjin is shining a spotlight on dangerous workplace conditions and precarious employment relations in China.
The accident began with fires at a warehouse owned by Rui Hai International Logistics. The company was storing illegal quantities of sodium cyanide—a highly toxic and volatile substance. Investigators at the site have also found hundreds of tons of fertilizers and other hazardous chemicals.
Firefighters reportedly sprayed water on the flames, which may have contributed to a chain reaction. Two gigantic explosions were large enough to register as minor earthquakes. Fires and secondary explosions raged on for days, creating serious concerns about air and water contamination.
The accident has already claimed 145 lives and injured more than 700. Some are still missing. The casualties include employees of the logistics firm, other workers near the blasts, firefighters, and local residents. Apartments miles from the industrial park suffered broken windows, while poorly constructed dormitories nearby simply collapsed, injuring rural migrant workers inside.
What began as an industrial accident has quickly become an environmental disaster. The week after the blasts, when the first rains came, residents reported a white foam covering the streets and a stinging sensation on their skin. Thousands of dead fish floated to the surface of the nearby Hai River.
For fear of contamination, authorities evacuated residents near the blast site. Military units and biochemical specialists were sent to clean up the area.
Hundreds of displaced residents took to the streets to call for compensation. The families of dead and missing firefighters demonstrated to demand more information and transparency.

WORKPLACE HAZARDS ABOUND

This is one of China’s worst industrial accidents in recent years, but it’s by no means isolated. Three decades of breakneck industrialization have produced a long trail of disasters.
The government does not publish statistics on industrial accidents. But the Hong Kong-based China Labour Bulletin’s Work Accident Map has recorded some 370 industrial accidents since December 2014. The majority are in construction, mining, and manufacturing. Most include fatalities as well as injuries.
Such incidents rarely receive the public and media attention that the Tianjin blasts have gotten. Few are thoroughly investigated, and it’s rare that workers or their families are fairly compensated.
Until recently, mining accidents were the most notorious source of workplace injury and death. Six to seven thousand miners died each year in the early 2000s, in accidents caused by dust explosions, mine collapses, and floods. After a 2005 disaster, authorities cracked down on illegal and unsafe mines, and the death toll declined. Even so, in 2013, 1,000 Chinese miners died on the job.
Many more suffer from lung diseases. Six million workers have pneumoconiosis, and in the majority of cases it’s probably caused by dust inhalation in coal mining. They face huge costs for medical treatment, with little compensation from management and the government.
Factory fires and explosions are common too, particularly in manufacturing, where management and local authorities routinely ignore safety. A 2013 fire at a poultry plant in Jilin Province killed 121 people. Last year, a dust explosion at an auto parts plant in Kunshan, Jiangsu Province, killed 146. The China Labour Bulletin reported 26 workplace explosions this year before Tianjin, causing 65 deaths and 119 injuries.
Most of these companies lack effective union representation, so workers have no way to report and address problems.

Review: Behind China's Wildcat Strike Wave

China is the world center of wildcat strikes—given that no strike in China is officially allowed under the law. The government doesn’t issue statistics, but one source found 1,171 strikes and worker protests from June 2011 through 2013.
Strikes are on the rise since 2008, but they all take place outside the official channels of the All-China Federation of Trade Unions. China labor scholar Eli Friedman, who speaks Mandarin and has spent a great deal of time in the country, shows us throughout his book Insurgency Trap how the ACFTU takes a “passive repressive” response to worker unrest—and sometimes not so passive.
His case studies show how in even the supposed best examples—the ones that ACFTU officials show to visiting foreign unionists—workers find their union worthless and contracts go unenforced.
Read more here.
—Jane Slaughter

FIREFIGHTERS ARE TEMPS

Eighty-eight firefighters were killed in the Tianjin blast. Even as the government hails them as national heroes, the casualties have called attention to their precarious employment conditions.
Many firefighters in China are employed on “dispatch labor contracts.” In theory this means they’re asked to sign a one- to two-year contract with a labor contractor, then dispatched to work for companies. In practice, companies often recruit workers directly, then force them to sign dispatch contracts afterwards.
This setup allows employers them to avoid establishing any legal contractual relationship with their employees. Workers on dispatch contracts receive lower salaries and fewer benefits than those on regular contracts. When accidents like this happen, they often receive much less compensation—and it’s not always clear who’s even responsible for paying it.
This particular form of casualization has expanded since the Chinese government passed the 2008 Labor Contract Law, supposedly designed to protect workers’ job security. To bypass the law, employers started using more dispatch labor. The central government, responding to public criticism, amended the law in 2014 to reduce casualization—but there’s no evidence the amended law has been forcefully implemented.
Among the worst offenders are state-owned enterprises and government institutions, which have sharply increased casualization to cut labor costs. In some state-owned enterprises, casual workers make up over 50 percent of the workforce—even though the legal limit is 10 percent.
Most of the Tianjin firefighters who died were on such contracts. So were many of the workers in the warehouse that exploded.
There is no union specifically for firefighters in China. The district trade union that’s supposed to represent those in Tianjin responded to the disaster by passing out a self-help handbook.

PUBLIC BACKLASH

The public backlash has forced the Chinese government to launch a nationwide investigation into businesses that produce and store hazardous materials. Linking the disaster to corruption and a failure of regulatory oversight, the government is also investigating the company and local authorities. Already it has detained 11 high-level local officials and 12 senior company managers, and the chief of the State Administration of Work Safety has been sacked on suspicion of “serious breaches of discipline and the law.”
The government’s actions are a tacit acknowledgment of public concern for the environment, and of China’s emerging environmental movement. Over the past decade, urban residents in Xiamen, Dalian, Maoming, Kunming, Shifang, and most recently Shanghai have protested petrochemical and incineration plants that were slated to be built near concentrated residential areas. Usually they’ve won, getting the plants relocated or cancelled.
Although they come at tragic human costs, the new investigations and stepped-up regulatory enforcement are steps in the right direction. But ultimately, to fight for better health and safety standards and to avoid any more tragedies, workers will need to build strong, democratic unions.
China’s official union, the All-China Federation of Trade Unions (ACFTU), has sought to set up unions at more and more companies. But even in most of these unions, workers cannot democratically elect their representatives. Recent experience suggests the most effective unions are those elected by workers after successful strikes.
Kevin Lin is a Ph.D. student researching labor politics in China.
- See more at: http://labornotes.org/blogs/2015/09/anger-over-chinas-deadly-workplaces-after-warehouse-explosion#sthash.9fnkaNZw.dpuf

Pressure builds on Walmart in Shenzhen as trade union activists fight back

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Pressure builds on Walmart in Shenzhen as trade union activists fight back

Sacked Walmart workers in Shenzhen are joining forces to put pressure on the world’s largest retailer to curtail its harassment of labour activists and genuine trade unionists.
Yu Zhiming, a democratically elected member of the union committee at Walmart Store No. 5722 in Shenzhen’s Nanshan district, took the company to arbitration court for illegal dismissal earlier this year and won. He has now teamed up with veteran Walmart worker activist, Wang Shishu, who is also suing the company after being dismissed for a second time earlier this year.
Yu, 43, from the central province of Hubei, had worked in the seafood department at the No. 5722 store since 2002. He was elected to the store union committee in 2013:
“All of the six committee members and the union president were democratically elected, and we were doing a good job,” Yu said. “I am very proud to say that our union was the only one in Shenzhen that was functioning as it should and was not controlled by management.”
The store union committee tried to bargain for better working conditions and, in September 2013, refused to endorse a new company rule that allowed managers to fire any employee who disobeyed three orders. The management-controlled unions in the city’s 25 other stores all approved the new rule.
Walmart management soon began to target the No.5722 store union committee members and, in March 2015, sacked Yu and his fellow committee member Song Cailiang on the grounds of “severely violating company regulations.”
“The manager said I was a slacker who hid inside the locker room during work hours. Everybody knows that is not true. For over a decade, I kept a work log for the shift, and made entries in the locker room,” Yu said.
Yu and Song got no support from the local district trade union but their cases were taken up by the Laowei Law Firm. In August, the arbitration court ruled in Yu’s favour although Walmart is now appealing the decision.
Worker activists protest illegal dismissals outside a Walmart store in Shenzhen
During the appeals process, Yu has joined a solidarity campaign organized by veteran labour activist Wang Shishu, who has staged demonstrations outside several Walmart stores across Shenzhen protesting the company’s union busting policies and unlawful dismissals. Wang explained: “I fought this battle once before and I am ready to fight it again. I am excited that Yu Zhiming and the others are joining the effort.”

Monday, September 7, 2015

China’s e-commerce workers protest over wage arrears, contracts

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News

China’s e-commerce workers protest over wage arrears, contracts

Championed by the Chinese government as the “bright spot” in the future of the economy, China’s e-commerce sector has recently been hit by labour unrest, with three protests in just one week last month.
Delivery workers from cities across the coastal province of Jiangsu staged a protest on 25 August at the east China distribution centre of VIP.com, China’s largest online discount retailer, which is listed on the New York stock exchange. See photo below.
The roughly 20 protesters represented more than 1,000 employees who claimed they were owed five month’s wages or a total of four million yuan. The workers protested for several days, holding banners and even climbing on to the roof of the distribution centre and threatening to jump off, at which point the local police intervened and arrested five workers suspected of being the “primary troublemakers.”
The dispute was exacerbated by VIP.com’s refusal to accept that the workers were actually employed by VIP.com.  The workers were technically employed by Nanjing Pai’er Courier but a worker named Zhu explained that Pai’er had merged with VIP in February, and that wage payments had been irregular ever since.
In a similar dispute in nearby Shanghai on 18 August, workers at Yihaodian.com staged a demonstration and threatened to jump off a company building in protest at management attempts to force them from their jobs.
Soon after Yihaodian.com was acquired by US retail giant Walmart in July this year, about 800 Yihaodian agency workers were told to either sign new contracts or leave. The workers quickly organized and demanded talks with the employer. When talks broke down, the workers took collective action. As one employee explained on social media:
Walmart is trying to get rid of the older workers in order to cut costs. They think Chinese workers are uncultured and don’t understand the law so they can be easily bullied.
In addition, there was another small protest over wage arrears on 20 August at an e-commerce company in Xinyu, Jiangxi.
E-commerce companies, like Alibaba, have expanded rapidly in China with the help of favourable government policies but the recent labour protests indicate that the growth process will not be as smooth as many had hoped. The industry’s use of agency labour, in particular, will very likely generate more disputes in the future.
August saw a spike in the number of disputes in the retail sector in general, ranging from protests at department stores to real estate agents. Services and retail still account for only around ten percent of the total number of incidents recorded on CLB’s Strike Map but absolute numbers are growing this year and already surpass the total from last year.