Protest blocks China steel mill takeover
August 17, 2009
By Reuters Beijing
China was forced to halt the privatisation of a state-owned steel firm after a protest by thousands of workers who said they had not received fair pay.
It was the second time in less than a month that workers have halted the privatisation of a Chinese steel plant as Beijing tries to overhaul the industry.
Last month, a crowd assaulted and killed an executive managing the acquisition of state-owned Tonghua Steel in north-east Jilin province.
The latest protest was in central Henan province, where workers at Linzhou Steel opposed a proposed takeover by Fengbao Iron & Steel, a private firm, said the official Xinhua news agency.
The demonstration began on Tuesday and ended on Saturday after a mediation team promised to temporarily call off the deal, Xinhua said.
In a sign of official concern, the state-backed All China Federation of Trade Unions posted a notice on its website saying corporate restructuring plans would be invalid without workers' approval.
The Linzhou Steel workers demanded higher compensation for those who had lost jobs as well as unpaid wages due to the firm's restructuring.
The plant produces roughly 400 000 tons of pig iron and 100 000 tons of cement a year.
China, the world's top producer and consumer of steel, has been trying to consolidate the industry, but many local governments have resisted mergers over fears about throwing people out of work and sparking unrest. - Reuters
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