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Workers now calling for more say in steel mill's future

By Hu Yinan (China Daily)
Updated: 2009-08-18 07:52

* "How are these cadres, who tried to sell the company, capable of representing us in meetings with the government?" a senior accountant with the company asked.

ANYANG, Henan: Workers at a State-owned steel mill, where a five-day protest against a proposed private-sector takeover ended in the collapse of the deal, are now calling for worker representatives to participate in any talks involving prospective buyers.

The demand came about after reports that an official group responsible for the restructuring of the Linzhou Iron and Steel facility held meetings with the company's middle management at a discreet location yesterday at which they asked mill management to gauge workers' attitudes toward a possible takeover.

Workers said their attitude had always been clear: They were against the idea. When Fengbao Iron & Steel tried to purchase their steel plant after an auction last month at a price 64 million yuan ($9.3 million) less than the initial bid at the auction, the workers began their protest.

They ended their occupation of the plant only after provincial leaders promised early Saturday to suspend Fengbao's proposed takeover.

Linzhou Steel's deputy general manager Cai Xinjie told China Daily the group had initially tried to hold a meeting with middle management on Sunday, but failed.

"We couldn't find enough of them (middle managers)," he said. "I don't know where people went."

The official group, led by Sheng Guomin, deputy Party chief of Puyang city, was not available for comment.

Linzhou Steel is in Anyang, but authorities in Puyang, which was formed from part of Anyang, administer its operations.

Cai insisted that the official investigation into any proposed takeover was still in the early stages and said it "will take time" before they are ready to solicit opinion from ordinary employees.

The workers, though, say they want to be involved now in any meetings with potential buyers.

"It was we, the working people, who stood up and fought for Linzhou Steel and got it back. We should be there at the meetings," a senior accountant with the company told China Daily. She refused to disclose her name. She said plant managers were not the right people to be taking part in the talks.

"How are these cadres, who tried to sell the company, capable of representing us in meetings with the government?" she asked.

"Not one of them stood up when we were out there fighting for Linzhou Steel. Now that the fruits are ripe, here they are, trying to represent us."

Linzhou Steel's labor union chairman, Guo Jianjun, said the number of workers' delegates stands at around 170.

"We've managed to keep the proportion of grassroots workers among these representatives in line with State regulations. But some retired in recent years; others left. So now, we may be having a few more managers as representatives than in the past," he said. "The workers' attitude now may be somewhat inappropriate. After all, it was they who recommended these people be their representatives."

The workers, meanwhile, insisted that they never had any say in the election of the workers' delegates who will be involved in any talks.

The Linzhou Steel restructuring plan, which is dated May 31, cites the strong will of the plant's employees as the main reason for seeking new ownership in the private sector. The workers who took part in the five-day protest and occupation of the plant, meanwhile, said they never wanted to resort to violence.

"We've all been compelled to come this far," said Fu Linxue, a Linzhou Steel guard for 16 years.

Linzhou Steel's auction was held on the same day that a protest erupted against a proposed private-sector takeover at another mill in Tonghua, Jilin province. That protest ended with workers beating to death the newly appointed general manager.

The unrest in Jilin also ended with the proposed takeover deal being scrapped.

Liu Zhen contributed to the story