Chinese coal miners strike over wages layoffs

(MENAFN- The Peninsula) AFP /Fred Dufour/ File photo

Beijing:Thousands of miners in China's coal-rich north have gone on strike over months of unpaid wages and fears that government calls to restructure their state-owned employer will lead to mass layoffs.

Video obtained by AFP Monday showed protesters marching through the streets of Shuangyashan city in Heilongjiang province venting their frustration at Longmay Mining Holding Group the biggest coal firm in northeast China.

Pictures showed enormous crowds filling the streets.

"I'm on my knees my family can't eat" an elderly woman pleaded with a man who appeared to be a government official.

"Tell me how can we live?" she shouted before collapsing and being rushed away by fellow protesters.

The situation in Heilongjiang exemplifies the dilemma faced by Chinese authorities who say they want to reform the world's second-largest economy and at the same time seek to avoid unrest.

China's state-owned enterprises (SOEs) are plagued by overcapacity and many are unviable but the government has been loathe to kill off such "zombie" companies fearing unemployment could lead to instability.

But it plans to lay off about 1.8 million workers in the steel and coal industries a human resources and social security ministry official said last month.

In the video footage from Heilongjiang dozens of police cars lights flashing lined the streets and protesters complained of violence by authorities as tensions mounted.

"Traffic in the centre of Shuangyashan city was halted" a witness told AFP adding "some people were hurt".

Pictures from the scene showed what appeared to be police tussling with protesters with one woman apparently thrown to the ground.

Striking miners held large banners demanding back pay.

"Their main request is to get the delayed incomes from the past several months" the witness said.

The miners' anger spilled into street action after Heilongjiang's governor Lu Hao said that the company owed employees no back pay.

At the weekend the provincial government admitted that workers' compensation was in "arrears" following "many years of accumulated problems".

As a result "not a few workers have encountered difficulties in their lives" it said.

- 'Heavy losses' -

The statement blamed the company's financial woes on inefficiency saying that it "uses three times as much labour as the national average to produce 10000 tonnes of coal" resulting in "heavy losses and diminished cash flow".

The firm was "resolutely battling" to implement reforms it said.

Late last year 21 miners died in a fire at a mine operated by the company.

China's coal industry has been particularly hard hit as the country's growth slows.

Consumption of the heavily polluting fuel fell 3.7 percent last year according to China's National Bureau of Statistics (NBS) after a 2.9 percent decrease in 2014.

Coal use is slowing globally and with China's massive production volumes leading a glut in supply prices have plummeted falling by more than 50 percent since 2012.

Earlier this month Premier Li Keqiang again pledged to encourage "structural adjustments" in his opening speech to the annual session of China's Communist-controlled parliament.

The country saw at least 1050 strikes and protests by workers with around 90 percent of them related to unpaid wages in the 10 weeks to the start of the Lunar New Year in February according to China Labour Bulletin an overseas campaign group.


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