Cox News Service July 2, 2002 Tuesday

Copyright 2002 Cox Enterprises, Inc.
Cox News Service


July 2, 2002 Tuesday

SECTION: International News

LENGTH: 1343 words

HEADLINE: STRIKES BRING LITTLE SATISFACTION FOR CHINA'S DISAFFECTED WORKERS

BODY:
For Sunday, July 7

With photos

With CHINA-SWEATSHOPS, CHINA-JOURNAL

By JULIE CHAO

Cox News Service

DAQING, China _ Much of industrial China has been gripped by labor unrest,
from protesting oil workers in the eastern province of Shandong to retired
steel workers in Guizhou in the southwest. Disgruntled workers are blocking
traffic and railways, staging protests, shutting down production and risking
arrest.

The widespread strife has been viewed by some as a serious threat to China's
political stability. But experts say there is little chance of a
Solidarity-style labor movement starting up anytime soon. It's not just
repression that's stopping workers from organizing; they lack the vision to
unify their disparate causes. Two recent protests against state-run
enterprises in this gritty city exemplify the plight.

Workers of the Number Two Construction Company haven't been paid in four
years. They weren't fired or laid-off or otherwise made eligible for any
state benefits. They were simply told not to come to work because there was
no money to pay them. They obstructed a railway in protest, but virtually
nothing came of it. They are angry, frustrated and disheartened.

Across town, thousands of workers at the Daqing Petroleum Administration
have been holding a sit-in for months to protest a buy-out package they say
is unfair and leaves them with little for their future. Their rage is
compounded by what they see as blatant corruption _ managers are thriving
while the underlings suffer. They vow to demonstrate until their demands are
met.

These two groups of workers, living in the same city, victims of the same
painful economic restructuring and driven by the same outrage at official
malfeasance, barely know of each other's existence.

"Workers must be organized in order to develop their class consciousness,"
said Chen Feng, a professor at Hong Kong Baptist University who studies
labor issues. "Relying on workers to sympathize spontaneously would be
difficult. Workers won't see the class interest by themselves; they only see
personal interest."

To workers in Daqing, the bad guys are the local officials or bosses, not
the central policies that allow those officials to get away with withholding
paychecks or possibly even lining their own pockets.

"Their only demand is to have enough to eat," Chen said.

The lack of political freedoms, the absence of a free press and arrests of
anyone who dares speak out on behalf of workers make it nearly impossible to
spark a broader labor movement. Paltry payouts usually are enough to get
most protesters to go home.

"It's not easy for workers to organize," said Yawei Liu, a China specialist
at the Carter Center in Atlanta and history professor at Georgia Perimeter
College. "The government clips their wings at the embryonic stage. As long
as they're isolated, it's not a problem (for the government)."

Movements that are truly organized _ such as the Falun Gong spiritual sect,
which has a hierarchy of leaders and set up sophisticated underground
communications channels _ are viewed by the government as a genuine threat
and ruthlessly suppressed.

Still, the government's strategy for defusing labor protests _ arrest a few,
payoff the rest _ cannot be maintained indefinitely, experts agree.

"There's no chance of workers linking up," said Xian Yulin, a 59-year-old
Daqing oil bureau retiree who sympathizes with the protesters. "Things are
too tightly controlled. But sooner or later, it will explode. Something will
happen. But now the time is not right."

So far, most labor protests have been spontaneous, set off by two factors:
economic desperation and anger at corruption. Participants have largely been
limited to people who were already out of work and had little left to lose.
Employed workers have rarely gone on strike, neither to protest corruption
nor in sympathy with other protesting workers.

Yet, as competitive pressures brought by China's entry into the World Trade
Organization force bloated state enterprises to further slash expenses and
boost efficiency, more and more workers will be without jobs.

More than 25 million people since 1998 have lost their jobs and 17 million
have found other work, according to official statistics. Another 20 million
people _ equivalent to the population of Texas _ will be out of work in the
next four years.

Hardest hit are the generation of low-skilled, middle-aged workers who were
told at the beginning of their careers that they were "masters of the state"
and would eat from the "iron rice bowl" for life.

"Reform and opening up is good, but we have nothing to eat," said Zhang, 57,
a carpenter for the Number Two Construction Company. He would give a
reporter only one name.

The dire situation has given rise to a new phenomenon in modern China _
urban poverty. According to the official Xinhua News Agency, 5.45 million
urban dwellers make less than $18 a month. China's so-called rust belt, its
industrial base in the northeast, has about 1 million people who qualify for
basic welfare subsidies but do not receive them, Xinhua said.

The urban poor now have to compete with migrant laborers from the
countryside for work, something that would have been unthinkable in China a
decade ago.

Many of the unpaid employees of the construction company have resorted to
selling vegetables and grains at the street market to get by, once work that
was done strictly by peasants. If they're lucky, they eat meat a couple
times a year. Many survive mainly on rice, noodles and other staples.

Mrs. Li, 44, wakes up at 3 every morning to make steamed buns. She earns
about $35 a month selling them at the street market for 3 cents apiece. Her
only worries now are eating and keeping her teenage son in school.

"If he has no education, then he has no future," said Li, who declined to
give her full name.

The workers have tried demonstrations. About a year and a half ago, 2,000 of
them went to the nearby train station and stopped traffic for nearly an
hour. Net result: five people were arrested and everyone else got a measly
$30 holiday bonus at the following new year.

Workers said things had been fine at the state-run construction company,
which once employed 8,000 people and built many of the city's major
structures, up until about five years ago, when it was restructured. Like
thousands of state-run enterprises, it lost its state subsidies, issued
shares and became responsible for its own profits. But, as in many cases,
not all ties to government were severed and managers placed priority on
lining their own pockets instead of running the company efficiently, workers
said.

"The local government runs down the state enterprise, siphons off the money,
sells off the land, sells off the machines or siphons off the business to
their relatives or their own newly-set up private enterprises," said Anita
Chan, a senior research fellow at Australian National University who
specializes in labor issues in China. "A lot of this is happening. This
change of ownership is really legalizing this corruption. This is one of
many reasons why the state sector isn't doing well, and why workers get so
upset."

At the Daqing Petroleum Administration, restructuring started three years
ago as its parent company, PetroChina, prepared to list on stock exchanges
in New York and Hong Kong. Protesters were also stirred by corruption, or at
least the perception of it. They saw managers driving nice cars and getting
fat bonuses while their own buyout package left them with hardly any medical
care or old-age insurance.

Though the construction workers and oil workers in Daqing have not linked
up, they have developed at least one common belief _ disillusionment with
the Communist Party.

"If they just took a few of the corrupt officials and executed them, these
workers wouldn't be out there protesting," said a 65-year-old oil bureau
retiree who sympathizes with the protesters.

Julie Chao's e-mail address is juliec(at)coxnews.com.

Stephen F. Diamond
School of Law
Santa Clara University
[EMAIL PROTECTED]

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