Strike at HiP continues in Shanghai
Workers maintain their labour action after a week. They demand protection and are opposed to the relocation of production. The government is at a loss on how to cope with social unrest, blaming the global crisis for economic problems. At the same time, it is urging companies to increase their competiveness.
Shanghai (AsiaNews) – Hundreds of striking workers at an electronics plant in Shanghai vowed to continue their protest for a seventh day after talks with Singapore-based Hi-P International failed. The company supplies giants like Apple and Hewlett Packard.
Workers went out on strike on 30 November to protest against the company’s decision to lay off about a thousand workers after it decided to relocate production to the city’s outskirts.
After two days of talk, management offered to bus workers to the new location but this was not accepted.
"We work long shifts, sometimes over 20 hours. Even with a company shuttle bus, the new factory will mean an hour and a half's travelling every day, so we won't have any time left to rest," one worker said. "Most of us have been working at this factory for many years, so we should be properly compensated if they want to break our contracts."
Lower demand for Chinese goods in Europe and the United States because of the global crisis has had a major impact on China, the world’s factory. At the same time, workers are increasing their protests against the government and their employers because of corruption and the lack of workers’ rights that result in cuts in wages and high unemployment.
Meanwhile, the government tries to shift the blame. An “extremely complex" global economic situation will inevitably lead to insufficient demand for Chinese exports, said Deputy Prime Minister Wang Qishan during a visit to the north-eastern province of Liaoning. To address the problem, he urged companies to increase their competitiveness, pledging tax breaks on exports.
Likewise, Chinese Commerce Minister Chen Deming noted that China's economic growth is likely to slow slightly in the coming year due to weak demand in world markets.
On 1 December, China announced a drop in manufacturing output for the first time in two and half years. It came after the central bank decided to reduce banks’ compulsory reserves to ease lending to companies and households. Only a few weeks earlier, the central bank had raised the ceiling.
In October, Chinese exports towards the European Union dropped to US$ 28.74 billion from US$ 31.61 billion in September. The same thing was true for the United States, whose imports went from US$ 30.11 billion to US$ 28.6 billion.
The government is concerned that if the trend continues, it might lead to higher unemployment and social unrest.
Workers went out on strike on 30 November to protest against the company’s decision to lay off about a thousand workers after it decided to relocate production to the city’s outskirts.
After two days of talk, management offered to bus workers to the new location but this was not accepted.
"We work long shifts, sometimes over 20 hours. Even with a company shuttle bus, the new factory will mean an hour and a half's travelling every day, so we won't have any time left to rest," one worker said. "Most of us have been working at this factory for many years, so we should be properly compensated if they want to break our contracts."
Lower demand for Chinese goods in Europe and the United States because of the global crisis has had a major impact on China, the world’s factory. At the same time, workers are increasing their protests against the government and their employers because of corruption and the lack of workers’ rights that result in cuts in wages and high unemployment.
Meanwhile, the government tries to shift the blame. An “extremely complex" global economic situation will inevitably lead to insufficient demand for Chinese exports, said Deputy Prime Minister Wang Qishan during a visit to the north-eastern province of Liaoning. To address the problem, he urged companies to increase their competitiveness, pledging tax breaks on exports.
Likewise, Chinese Commerce Minister Chen Deming noted that China's economic growth is likely to slow slightly in the coming year due to weak demand in world markets.
On 1 December, China announced a drop in manufacturing output for the first time in two and half years. It came after the central bank decided to reduce banks’ compulsory reserves to ease lending to companies and households. Only a few weeks earlier, the central bank had raised the ceiling.
In October, Chinese exports towards the European Union dropped to US$ 28.74 billion from US$ 31.61 billion in September. The same thing was true for the United States, whose imports went from US$ 30.11 billion to US$ 28.6 billion.
The government is concerned that if the trend continues, it might lead to higher unemployment and social unrest.
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