China bows to protesting steel plant workers

BEIJING: Chinese authorities have bowed to demands from protesting workers of a steel mill and suspended the process of privatizing the unit. The

Communist Party has also promised to reconsider the decision to hand over the plant to the private sector.

This is the second occasion within a month when the party has indicated it is ready to listen to workers opposed to privatization of the steel industry, part of which suffers from overcapacity and inefficient management. It halted the privatization of the state-owned Tonghua Steel in Jilin province after angry workers assaulted and killed a company executive.

The latest move involves halting the takeover of Linzhou Iron and Steel by a private company, by Fengbao Iron & Steel Co. Ltd. Linzhou workers began mass demonstration against the move last Tuesday fearing many of them would be relieved of their jobs. Besides, Fengbao has a reputation for not paying wages in time, the workers complained.

The plant, which was set up in 1969, has 5,122 workers and pensioners on the regular payroll, has not been operating since last March after the government approved a plan to restructure it along commercial lines. The plant suffered from multiple problems like cash shortage and falling sales besides being unable to meet environmental standards.

The crowds at the plant in Anyang City dispersed after a government mediation team, comprising officials of the Communist Party and the government, promised to reconsider the takeover, the official Xinhua news agency said.

Some workers complained that the Linzhou Iron and Steel, which is worth 330 million yuan, has been undervalued to satisfy the private bidder.