linzhou steel
but cai, deputy general manager of linzhou steel, told china daily the bidding was legal .
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but linzhou steel' s deputy general manager cai xinjie said he had
never learned of the 550 yuan subsidy
.
the success of linzhou’s steel workers in blocking privatization could embolden workers in other industries, experts on chinese labor issues said on sunday .
a group responsible for the restructuring of linzhou iron and steel was reorganized under the leadership of sheng guomin, deputy secretary of puyang city cpc committee .
an anonymous linzhou steel staff member recalled officials as having said they
wouldn' t be able to sleep without dealing with this issue properly
.
linzhou iron and steel, established in 1969, has 5, 122 workers and pensioners on the regular payroll and 2, 995 workers on the job .
up to 400 workers and their relatives gathered saturday morning inside and outside the compound of the linzhou iron and steel to press for a suspension of the takeover .
liu junsheng, linzhou steel' s board chairman and general manager, reportedly told an earlier inside meeting that
the more we' re in the red, the more it benefits linzhou steel' s restructuring, and the more it benefits our purchase ,
according to petition letters provided to china daily by workers .
the workers said all linzhou steel employees were forced to accept compensation of only 1, 090 yuan for each year of service before signing a new contract with fengbao .
sheng said :
our work for the time being will be to extensively solicit workers' opinions on restructuring and the future development path of linzhou iron and steel .
in halting the privatization of the linzhou mill, xinhua said, the province’s government and its communist party committee issued a decision that, “issues regarding the future of linzhou iron and steel co. ltd. and benefits of its workers should be decided by its workers’ congress. ”
issues regarding the future of linzhou iron and steel co. ltd. and benefits of its workers should be decided by its workers' congress ,
says the decision .
before linzhou iron and steel resumes production, each worker will get a monthly living allowance of 550 yuan (81 u. s. dollars), according to the decision .
the puyang sasac evaluated linzhou steel' s assets at about 320 million yuan. the workers insist that the enterprise is worth
at least 800 million yuan
. they see the sasac report, which valued a linzhou steel - affiliated cement factory with an annual produc - tion capacity of 100, 000 tons at no more than 17 yuan, as a joke .
officials say linzhou steel' s impending bankruptcy is a core rationale for restructuring. but a senior employee, who has worked at the factory for 39 years, said its management
deliberately screwed up
to le - gitimize linzhou steel' s privatization, which workers see as a move to
sell them out
to fill the pockets of the rich and the powerful .
workers had tried unsuccessfully to halt the privatization by blocking the traffic twice since march. many workers also believe linzhou iron and steel is worth 330 million yuan, but was undervalued at the auction .
with the headline: bowing to protests, china halts sale of steel mill .
xinhua said that fengbao iron & steel had already paid 180 million yuan, or $ 26. 5 million, of the 259 million yuan it bid at an auction to acquire linzhou steel. the 180 million yuan will be refunded, xinhua said, citing an unidentified local official .
on thursday, faced with a glut of steel - making capacity and many small steel companies vying to buy iron ore, beijing officials ordered a three - year moratorium on the construction of any new steel mills or the expansion of existing mills .
the newspaper china daily reported on saturday that the police had tried to break through the ranks of workers on friday in the latest incident, at the linzhou iron and steel company in the city of anyang .
but that was the end of it. we never heard anything from them since ,
the staffer said. wang, also former chief of linzhou steel' s restructuring team, was fired after the protest .
the decision was taken by the provincial committee of the communist party of china (cpc) and the provincial government in an attempt to calm workers at the linzhou iron and steel co. ltd. , based in anyang city, who protested a planned takeover by fengbao iron and steel co. ltd. .
sheng guomin, chief of the restructuring working group, said sunday ,
our work for the time being will be to extensively solicit workers' opinions on restructuring and the future development path of linzhou iron and steel .
xinhua said that the fengbao iron and steel company had already paid $ 26. 5 million of the $ 38. 1 million it bid at an auction to acquire linzhou steel, which has 2, 995 workers. the $ 26. 5 million will be refunded, xinhua said, citing an unidentified local official .
yet many older, less efficient steel mills are deeply troubled. founded in 1969, the linzhou mill has not been operating since march because its sales fell, it ran short of cash and it failed to meet environmental standards .
yet many older, less efficient steel mills are deeply troubled. the linzhou mill is 40 years old and has not been operating since march because its sales fell, it ran short of cash and it failed to meet environmental standards .
henan' s vice party chief chen quanguo and deputy governor shi jichun, who arrived at the trouble - plagued linzhou iron and steel on friday, promised earlier next morning to suspend the takeover by fengbao iron & steel co. ltd and give each worker a monthly subsidy of 550 yuan (us $ 80) until production resumes .
on saturday, the provincial mediation team met with representatives from linzhou steel and employees about the privatization. but the workers feel they were still left out of the decision - making process, and demanded future meetings be held with representatives of their own .
on july 24, almost a year after local authorities decided to privatize the firm, linzhou steel was sold to fengbao for 258. 9 million yuan, or about 64 million yuan less than the initial bid at auction, without the workers' consent .
a working group responsible for the restructuring of linzhou iron and steel was reorganized under the leadership of sheng guomin, deputy secretary of puyang city cpc committee. the group was originally headed by a lesser official in charge of politics and law enforcement in puyang city .
in this weekend’s action, xinhua said that the henan provincial government and the province’s communist party committee issued a decision that “issues regarding the future of linzhou iron & steel co. ltd. and benefits of its workers should be decided by its workers’ congress. ”
they said fengbao, with only 1, 500 available job positions, had a bad reputation for unpaid wages and lack of work insurance. they insisted that fengbao is just an empty shell and has no right to buy a healthy organization such as linzhou steel .
local, provincial and national government agencies have been reluctant to use overwhelming force against protesting workers. china daily newspaper reported saturday that police had tried to break through the ranks of workers friday in the latest incident, at linzhou iron & steel in anyang city, in henan .
set up in 1969, linzhou steel has 5, 122 workers and pensioners on the regular payroll and 2, 995 workers on the job. the plant is in anyang, but au - thorities in puyang, which was formed from part of anyang, administer its operations .
copyright @ 2012 - 2013 linzhou fengbao pipe co. , ltd. all rights reserved. address: hexi village, yaocun town, linzhou, henan province sales tele: (+ 86 - 372) 6500505 after service tele: (+ 86 - 372) 6500771 fax: (+ 86 - 372) 6500799 email: fbpipe @ urltoken
it' s a classic model of how state - owned assets are lost in corporate restructuring efforts in china. all 40 years of linzhou steel' s assets are now in the hands of a single person ,
said the worker, who refused to give his full name .
faced with a glut of steelmaking capacity and many small steel companies vying to buy iron ore, beijing officials on thursday ordered a three - year moratorium on the construction of any new steel mills or the expansion of existing ones .
shang xinkai, a worker in her 20th year at linzhou steel, told china daily that privatization, or
corporate restructuring
in official terms, should aim for the healthier development of the enterprise, not
selling state - owned assets off to private hands and sending workers home like trash
.
hong kong — a chinese provincial government on sunday halted the privatization of a state - owned steel mill where thousands of workers protested last week and took an official hostage, in the latest sign of increasing labor activism in the country’s steel industry .
the success of steel workers in blocking privatization could embolden workers in other industries, experts on chinese labor issues said sunday .
the global economic downturn has severely hurt the steel industry, which may be feeding labor unrest in the sector. chinese steel exports were down 15. 4 percent in the first half of this year. the chinese government is also locked in a series of disputes with australia over iron ore imports for steel production, the most notable of which led to the arrest of four rio tinto executives on accusations of bribery and trade secret infringement during price negotiations with chinese steel makers. rio tinto has strongly denied any wrongdoing .
the apparent capitulation of the government of henan province in central china came three weeks after rioting workers beat to death the executive overseeing the sale to a private business of another state - owned steel company, tonghua iron & steel works, in the northeastern province of jilin .
the protests, in henan province in central china, were the latest sign of increasing labor activism in china’s steel industry, the world’s largest and a cornerstone of china’s construction - dependent economy. three weeks earlier, rioting workers beat to death an executive who had been overseeing the sale of another state - owned steel company, tonghua iron and steel, in northeast china’s jilin province, to a private business .
last month, some workers assaulted and killed an executive who was managing the acquisition of state - owned tonghua steel in jilin province in northeast china .
linzhou fengbao pipe industry co. , ltd. (hereinafter refers to fengbao company) is the pillar branch company of henan fengbao special steel co. , ltd. , but also the largest professional seamless pipe manufacturer in henan province with innovative and high technology. the company covers an area of 423, 000 square meters, owns more than 900 employees, including more than 260 senior professionals and technicians. the company also manages provincial seamless pipe r & d center, with an annual output of 800, 000 tons of various kinds of high - end seamless steel tube .
the chinese steel industry, the world’s largest and a cornerstone of the country’s construction - dependent economy, is in turmoil this year, which may have fed labor unrest .
it was the second time in less than a month that protests by workers have stopped the privatization of a chinese steel plant, as the country tries to overhaul the sprawling industry .
authorities in central china' s henan province sunday ordered an immediate halt to the takeover of a state - owned steel factory by a private company after mass protests by the factory workers .
hong kong — a chinese provincial government halted the privatization of a state - owned steel mill on sunday, apparently capitulating to thousands of workers who protested last week and took an official as hostage .
the global economic downturn has severely hurt the sector, with chinese steel exports down 15. 4 percent in the first half of this year. in addition, the chinese government is locked in a series of disputes with australia over iron ore imports, and has arrested four rio tinto executives accused of bribery and trade secret infringement during price negotiations with chinese steel makers. rio tinto has strongly denied any wrongdoing .
anyang, henan: thousands of workers at a state - owned steel plant in anyang last sunday were still waiting for government promises to be delivered after a five - day protest against the takeover of their plant by a private firm .
but beijing has had less success in its efforts to force a consolidation of existing steel mills, a step that might strengthen their bargaining power with the handful of multinationals that dominate the global iron ore business. local and provincial government agencies have been wary of losing control of businesses that are often vital to their economies, and many workers are opposed .
fengbao company will be guided by scientific development concept to promote the technology progress, strengthen enterprise management and establish environment friendly, economy recycling enterprise, realizing comprehensive, balanced and sustainable development. referring to its development program, to the end of national “twelfth five - year plan”, fengbao company shall achieve annually production capacity of 2million tons of high - end seamless steel pipe including oil well pipe, casing pipe, structural pipe, high / middle - pressure boiler pipe, line pipe and mechanical processing pipe, etc, being the leading enterprise and domestically main production center and r & d center with product quality ranking the first ones of its industry .
fengbao, which bid 259 million yuan (38. 1 million u. s. dollars) for the plant at auction on july 24, has already paid 180 million yuan. management were unavailable for comment sunday .
the decision also requires the resumption of normal production at the plant as soon as possible .
it reiterated that fengbao should not interfere in the company' s internal affairs until all problems concerning restructuring were ironed out .
they also demanded higher redundancy compensation and the resolution of issues concerning unpaid wages during the restructuring .
the crowds dispersed after a government mediation team, comprising officials of the communist party and the government, promised to reconsider the takeover .
saturday' s protest followed a mass demonstration that began on tuesday at the site and ended at 3 a. m. saturday, which involved up to 3, 000 people .
it produces about 400, 000 tonnes of pig iron and 100, 000 tonnes of cement a year and is china' s only production base of low - titanium iron. it stopped production due to a number of factors, including a shortage of cash, falling sales, and a failure to meet state environmental protection standards .
the plant is in anyang city, but authorities in puyang, which was formed from part of anyang, administer its operations .
restructuring of the plant along commercial lines began in august 2008 under the approval of the government of puyang and the factory suspended all operations in march, sending all employees home .
they also said fengbao had a bad reputation for unpaid wages and lack of work insurance .
an unidentified official from puyang city government has promised fengbao that the payment of 180 million yuan would be reimbursed in full before the end of the month .
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being well - equipped, the company’s overall technology ability and equipment level reaches the most advanced domestically. installed with new type diescher rolling units as leading equipment in china, phase - ⅰ φ273 mill obtains advantages of high precision from pipe rolling, wide range of specifications, uniform wall thickness, quality surface of pipe internal and external, etc. φ273 mill utilizes advanced technologies of centralized deformation on working roll, mandrel pre - rotation, etc. the ancillary facilities of high level online preheating treatment and production line of finishing work for various kinds of pipes ensure the stable product quality; phase - ⅱ φ 159 mill adopts the german meer technology which is known as currently the most advanced world level three - roll retained - mandrel continuous rolling equipment; inspection facilities of multifunctional ones for length, wall thickness, and diameter measuring and equipment for impact testing, tensile testing and metallographic analysis, etc. are well installed, also with eddy current flaw detector, ultrasonic flaw detector and other ndt testing equipment. successively fengbao company has passed certification of iso 9000 quality system, classification society, the american petroleum institute api, national special equipment manufacturing license, environment management system and occupational health management system etc .
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china daily did not say if the police had been successful. the official xinhua news agency said that the workers decided saturday to halt their protests, which had attracted up to 3, 000 participants at a time, after a government mediation team agreed to reconsider the takeover. xinhua did not mention what became of the official who had been held hostage .
“it is no longer possible to push through privatization regardless, without considering the workers’ interests, ” said geoffrey crothall, a spokesman for the china labor bulletin, a labor rights advocacy group based in hong kong .
in a sign of high - level interest in the recent unrest, the government - sponsored all china federation of trade unions has posted a prominent series of commentaries at the top of its web page under the heading, “corporate restructuring: participation of the trade union is essential. ”
chinese law has long required that each privatization be approved by the workers’ congress of the affected company. but local government officials and company managers have frequently been able to rig the approval by running the congresses themselves, mr. crothall said .
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but the government has had less success in its efforts to force a consolidation of existing mills, which might strengthen their bargaining power with the handful of multinationals that dominate the global iron ore business. local and provincial government agencies have been wary of losing control of businesses that are often vital to their economies, and many workers are opposed to consolidation .
mary e. gallagher, the director of the center for chinese studies at the university of michigan in ann arbor, predicted that china would be able to continue privatizing state - owned enterprises in the years ahead, but that it would be costlier than during the big shift toward private ownership from 1997 to 2001. at least 30 million workers at state - owned enterprises were laid off then, but local protests did not spread .
“i’m betting they can do it again, but that it will cost them with higher compensation packages to laid - off workers, ” she said .
a version of this article appears in print on august 17, 2009, in the international herald tribune .
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they also demanded higher compensation and the resolution of issues concerning unpaid wages during the restructuring .
after they reached a deal with provincial authorities, demonstrators released dong zhangyin, a deputy director of the local state - owned assets supervision and administration (sasac), about 3 am on saturday, when the protest ended .
dong had been sent by puyang city to oversee the takeover and was held hostage by workers during the protest .
the company produces 400, 000 tons of pig iron and 100, 000 tons of cement a year, and has been china' s only production base of low - titanium iron .
the workers insisted the july 24 bidding was
illegal
, which would cause severe losses of state - owned assets .
the law says any item that nobody bids for can be sold at no more than 20 percent lower than the initial bid ,
he said .
workers had tried unsuccessfully to halt the privatization by blocking traffic twice since march .
dong, the puyang sasac official who shang claimed to have treated during his days as a hostage, reportedly acknowledged that all eight state - owned enterprises he helped privatize in puyang went bankrupt .
puyang' s deputy mayor, wang xiangling, and police chief ruan jinquan reportedly has promised the workers to take their concerns seriously .
the current representatives, they say, are cadres who
can no way
stand for their interests .
we must re - elect workers' representatives ,
a senior staff said .
not one among us has ever agreed to privatize or sell off the enterprise .
introduction: carbon content: 4. 0% ; phosphorus content: 0. 045% ; sulfur content: 0. 020% ; silicon content: 1. 25% .
china daily did not say whether the police had been successful. government agencies at all levels have been reluctant to use overwhelming force against protesting workers .
the official xinhua news agency said that the workers had decided on saturday to halt their protests, which had attracted up to 3, 000 participants at a time, after a government mediation team agreed to reconsider the takeover; xinhua did not mention what became of the official who had been held hostage .
in a sign of high - level interest in the recent unrest, the government - sponsored all - china federation of trade unions has posted a prominent series of commentaries at the top of its chinese - language web site under the heading, “corporate restructuring: participation of the trade union is essential. ”
chinese law has long required that privatizations be approved by the affected company’s workers’ congress. but local government officials and company managers have frequently been able to rig the approval until now by running the congresses themselves, mr. crothall said .
“i’m betting they can do it again, but that it will cost them with higher compensation packages to laid - off workers, ” professor gallagher said .
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linzhou steel corporation ( 林州钢铁 ) is a state-owned chinese enterprise established in 1969 . it employs 5,122 workers and pensioners on the regular payroll and 2,995 workers on the job . it produces about 400,000 tonnes of pig iron and 100,000 tonnes of cement a year . though it is in anyang city , authorities in puyang , which was formed from part of anyang , administer its operations . 
linzhou steel corporation (林州钢铁) is a state-owned chinese enterprise established in 1969. it employs 5,122 workers and pensioners on the regular payroll and 2,995 workers on the job. it produces about 400,000 tonnes of pig iron and 100,000 tonnes of cement a year. though it is in anyang city, authorities in puyang, which was formed from part of anyang, administer its operations.
linzhou steel corporation (林州钢铁) is a state-owned chinese enterprise established in 1969. it employs 5,122 workers and pensioners on the regular payroll and 2,995 workers on the job. it produces about 400,000 tonnes of pig iron and 100,000 tonnes of cement a year. though it is in anyang city, authorities in puyang, which was formed from part of anyang, administer its operations.