Demanding pay, chinese miners protest over governor's claim

Demanding pay, chinese miners protest over governor's claim

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Thousands of Chinese miners who say they have not been paid for months staged a rare protest in a northeastern city, days after the provincial governor made the apparently false claim that


no miner working for the province's largest publicly owned mining company was owed any back wages. Angry miners from Longmay Mining Holding Group Co. Ltd. and their family members


marched through the city of Shuangyashan on Saturday and gathered in front of the company's local offices. In response, the government of Heilongjiang province issued a statement


Saturday night acknowledging that many Longmay employees are owed wages and benefits, backtracking from Governor Lu Hao's assertions earlier this month. The protest and the change in


the government's stance underline the sensitivity of the employment issue, as Chinese miners and others in state industries are losing their jobs or seeing their pay drastically cut.


China's massive state-owned mining companies are struggling to boost efficiency and reduce their payrolls amid a severe slump in coal demand brought on by sharply slowing economic


growth. Chinese Premier Li Keqiang has told the annual legislature, which convenes in Beijing this week, that 100 billion yuan ($15 billion) has been set aside, primarily to assist workers


who should be diverted from industries such as coal and steel, reducing their capacities. The pain is particularly acute in China's northeastern rustbelt, where Heilongjiang is located.


Its biggest state-owned mining company, Longmay, reduced its work force by 22,500 people recently, according to state media reports. Longmay reportedly owed 800 million yuan ($123 million)


in back pay for 2014. A lengthy investigative article by China's leading financial news group, Caijing, reported in January that pay for Longmay workers has been continually cut, and


even those reduced wages had not been paid for three to four months. ChinaFotoPress | Getty Images Then on March 6, Lu, considered a rising political star, said at the national


legislature's annual session that the annual payrolls of Longmay are 10 billion yuan ($1.5 billion), about a third of the fiscal budget for the provincial government. But despite the


challenges, Longmay's 80,000 miners hadn't received a single cut in wages and all were paid on time, the governor said. The remarks seemed aimed at showing that Longmay and the


province were meeting the leadership's expectations for competently handling economic challenges. Calls to local police, government offices and Longmay rang unanswered Sunday, but


witnesses said thousands of workers took part in the demonstration, which began on Friday and peaked on Saturday in the mining town of Shuangyashan. A local resident who gave just his last


name, Li, said the protesters were holding banners demanding back pay. Li said he knew of Longmay workers who had not been paid for six months. Another eyewitness, who gave her last name as


Wang, said that she has family members working for the mines. She said their wages were cut to less than 1,000 yuan ($154) per month, and that the workers either did not receive their full


wages or were not paid at all for months. She said the protesters displayed a banner reading: "We need to eat. We need to live." China securities regulator: won't re-introduce


circuit breaker in next few years China's PBOC flags stimulus restraint but says policy should be flexible Both Li and Wang said that the protest was peaceful and that a large number


of riot police had been dispatched to the scene. They said the demonstration ended around 4 p.m. The provincial statement came out after 9 p.m. Saturday, saying Lu had held a special meeting


on Longmay in Beijing that afternoon. The statement made no mention of the protest in Shuangyashan, but said Longmay had failed to pay wages, taxes and insurance contributions. It said the


provincial government would work with Longmay to raise money and would make every effort to pay the workers. The statement did not mention Lu's earlier remarks, but hinted that he had


been fed false information. The provincial government demanded that Longmay, municipal governments and provincial agencies overseeing the industry report truthfully to the provincial


leadership. "Should important information be reported inaccurately again, it will be dealt with seriously," the statement said.