NYT May 17, 2000 Unrest Grows in China's Old State Plants By ERIK ECKHOLM B EIJING, May 16 -- Up to 2,000 unpaid workers and retirees have besieged their factory and government offices in a northeastern city over the last two days, the latest example of growing labor unrest as China's once-dominant state industries collapse. On Monday, nearly 1,000 employees of the Liaoyang Ferroalloy Factory gathered at the plant gate and blocked the adjacent highway as they demanded wages and pensions that some have not received for as long as 20 months, demonstrators said today by telephone. The factory is in Liaoyang, a city of 1.8 million in the Rust Belt province of Liaoning, where similar protests have been frequent. After midnight, hundreds of police officers broke up the crowd, beating people and detaining three retirees who had helped organize the demonstration, according to relatives of those in custody. One detainee, Lu Ran, 66, had a heart attack overnight and was moved to a hospital. This morning, as news of the detentions spread, close to 2,000 furious current and former workers of the factory gathered around the offices of the city government, seeking the release of the three organizers, as well as their back pay. Eventually, workers' 12 representatives met a deputy mayor, and at day's end, after having secured a promise that current and past wages, pensions and living stipends for laid-off workers would soon be paid, the protesters went home. The detainees' fate remained unclear, a protester said, and there was talk of possible further demonstrations in the days ahead. Many workers remained skeptical about the promised pay, the protester added, because similar promises have been broken in the past. Around China, workers' protests, strikes and other labor disputes have rapidly increased over the last few years, according to official records and Western diplomats. The backdrop is the wrenching transition from state-owned enterprises, many of which are not competitive. But protests often also reflect worker resentment against corruption or unfair treatment. The Communist Party leadership is plainly worried. But most political experts say they believe that the thousands of confrontations reported each year do not seriously threaten party rule. As was promised today, the government has generally sought to help companies pay off protesting workers. At the same time, any independent leaders who try to organize across companies or provincial lines are jailed. One of the largest and most bitter disputes known to outsiders in recent years took place in February in the mining town of Yangjiazhangzi, also in Liaoning Province. Angered by corruption and the closing of the town's main employer, a state-run molybdenum mine, residents rioted for three days, burning cars and smashing windows before the army moved in. The workers at the metals factory today carried signs saying, "Being Owed Wages Is Not a Crime," and, "Release the Workers' Representatives," reported the Information Center for Human Rights and Democracy in Hong Kong. The factory in Liaoyang, a former Communist flagship that has operated for more than 40 years, is responsible for 8,000 workers, an employee said, including 1,300 retirees and more than 1,000 who have been laid off as business falters. "The workers are very angry," said Pang Li, whose father, Pang Qingxiang, was detained. "Some haven't been paid for more than a year, and they've tried to get answers from the government many times." A group petitioned City Hall for help in February, said Liu Xizhen, the wife of Mr. Lu, who had the heart attack. "The mayor promised to look into it," Ms. Liu, 64, said. "But we didn't hear anything after that, and nobody received any pay. 'People don't have their pensions. They don't have any money to see the doctor. They don't have any money to buy food." Her family has been especially hard hit, Ms. Liu said, because her husband, their two sons and their wives all worked at the metals factory. Her husband is entitled to a pension of $48 a month, which he has not received for four months, she added, while the other four have been laid off and have never received the $18 monthly stipends that they are due. Ask questions about International News and tell other readers what you know in Abuzz, a new knowledge network from The New York Times. [abuzz_logo90.gif] [druginteractions.gif] _________________________________________________________________ Home | Site Index | Site Search | Forums | Archives | Marketplace Quick News | Page One Plus | International | National/N.Y. | Business | Technology | Science | Sports | Weather | Editorial | Op-Ed | Arts | Automobiles | Books | Diversions | Job Market | Real Estate | Travel Help/Feedback | Classifieds | Services | New York Today Copyright 2000 The New York Times Company [pixel.gif] [pixel.gif] The Integrated Solution for E-Business The Integrated Solution for E-Business