http://www.china-labour.org.hk/iso/article.adp?article_id=5235

Over 20 workers detained in bloody clash after massive protests continue in
Tieshu Textile Group Factory

China Labour Bulletin has learned that since 8 February 2004, an estimated
2,000 workers and retired workers from the Tieshu Textile Factory in Suizhou,
Hubei Province have been staging further public protests in their ongoing
struggle to recover unpaid benefits and against corruption at the factory. CLB
has been monitoring and reporting on the case since the end of 2002, when the
factory announced its bankruptcy.

According to eyewitnesses interviewed by CLB, on 8 February some 1,200 workers
blocked the local railway for most of the morning. They were then joined by
several hundred more workers. Later that morning, some 800 armed police and
regular police from neighboring towns arrived to disperse the protestors and
block the arrival of hundreds more who were heading toward the scene. In the
violent confrontation that followed, according to eyewitnesses, scores of
demonstrators were injured; the police are claiming that over ten police
officers and no workers were injured. A staff person at the local hospital has
confirmed to CLB that at least one worker and two police officers were admitted
with head injuries, including a 65 year-old woman. CLB managed to speak to the
daughter of the elderly woman, Wang Xuping, who stated that police had hit her
mother over the head from behind with a police baton. According to the
interview, the police were randomly hitting the demonstrators regardless of
whether or not they were actively resisting the police’s attempts to disperse
them.

As workers left the scene of the confrontation, several among the last of them
to leave were apprehended by the police. Further detentions of workers took
place that afternoon and during 9, 10 and 11 February. . According to workers
interviewed by CLB, the police were rounding up workers arbitrarily from the
local streets and markets, and among those taken away were people who had not
even been present at the demonstration. We were also informed that several
officers of the People’s Liberation Army (PLA) who had been present at the
confrontation and had verbally reprimanded the police for their brutal
treatment of the demonstrators. One PLA officer reportedly has since been taken
into police custody on charges of “inciting workers to cause trouble”.

Reports vary as to where the detained workers are being held. Some workers
interviewed believed that they were being held in a local hotel for special “re-
education” sessions organized by the local ACFTU, the Women’s Federation and
the police. Another interview stated that over 20 detainees were being held at
the Suizhou No.2 Detention Centre. However, when contacted by CLB, officials
from both the ACFTU and the detention centre denied any knowledge of the
detainees.

Since the initial blocking of the railway line on 8 February and the bloody
confrontation with police that followed, some 1,000 workers have continued to
gather each day outside the gates of the Suizhou Municipal Government
buildings. On 11 February, when the workers attempted to enter the Town Hall to
seek dialogue with the local government, another worker leading the
demonstration was apprehended. As of 11 February, several hundred protestors
were said to be maintaining their vigil outside government buildings.

Causes of conflict

The 8 February demonstrations were sparked by the Tieshu workers’ receipt the
previous day of an official notification, issued jointly by the factory’s
Bankruptcy Audit Committee and its Communist Party branch, which reversed a
series of earlier pledges that had been made to the workers. According to the
notification, only a small proportion of the funds invested by the workers
themselves in the factory in 1993 and 1997 would be returned to them. Many of
the current workers and those recently retired (from about 1999 onwards) had
been encouraged to buy shares in the factory in order to support it
financially. It later emerged that the factory director had issued warnings, as
early as 1999, to a number of private shareholders and personal friends that
the shares were going to fall in value as the factory moved towards bankruptcy.
The workers however did not know of the warnings until it was too late and
bankruptcy was declared, and in the recent official notification they learned
that their 1993 shares were now worth only one fourth of their original value.

Second, the Bankruptcy Audit Committee informed the Tieshu workers that two
formerly distinct categories of laid-off workers would henceforth be “merged”
and that all existing benefits for both groups were to be withdrawn.
Previously, the company had some 3,500 workers who were still classified
as “employed” (despite not actively working) who were supposed to receive some
130 Yuan each month as a living subsidy, while some 835 “internally-retired”
workers received benefits of 531 Yuan every month. This benefit had already
been reduced in 2001 to 236 Yuan. These internally retired workers had taken up
early retirement on the condition that this benefit would continue until formal
retirement age, when they would become eligible for state pensions. However,
the notice stated that after March 2004, there would be no distinction drawn
between these two classes of workers and that neither would receive any
benefits whatsoever. A previous “supplementary” benefit of 127 Yuan per month
for each worker had been withdrawn in January 2003 and this latest move would
thus mean the effective end of any financial help for the workers.

Instead of assisting the workers in their demands the municipal branch of the
ACFTU has reportedly joined a committee of government officials set up in the
factory after 8 February to look into the situation. ACFTU officials told CLB
that the situation is “under control” and all the workers are now “satisfied”,
after some unspecified policies had been changed. The official refused to give
further details.

The factory, which reportedly employs about 5,700 people, announced its
bankruptcy in December 2002 and is currently working out bankruptcy and layoff
procedures. In addition to the two categories of workers mentioned above there
are also some 1,300 formally retired workers who claim insurance benefits from
the state.

Background

After repeated refusals by factory management to hold genuine negotiations over
the terms of the bankruptcy agreements, workers from the Tieshu Textile Factory
staged large-scale public protests throughout 2003. The workers are currently
demanding that the factory authorities pay them all previously agreed pensions,
other benefits and basic living costs, and that the proper value of their
shares in the factory be returned to them. The workers are also calling on the
government to investigate their allegations of corruption by officials at the
factory which, they believe, has directly led to its imminent bankruptcy.

The first mass demonstrations took place on 2 January 2003 and involved some
1,000 workers. Tired of waiting for an official response to the earlier
protests, despite heavy rain and cold conditions, workers again blocked the
entrance to the factory and halted production in March 2003. Following the mass
protests in January 2003, the local Public Security Bureau declared the workers
actions to be “illegal” and began a door to door man-hunt for the alleged
leaders.

The workers have also attempted to utilize the courts to gain redress. Over 300
workers filed a joint complaint to the Suizhou People’s Court asking that
missing pensions and other benefits be paid by the Tieshu Group. However, the
court ruled in favour of the factory. The workers appealed but on 5 June 2003,
their appeal was rejected by the Hubei High People’s Court. The workers then
issued a public appeal proclaiming their determination to continue their
struggle and to take the case to the central authorities. CLB has since learned
that their lawyer has withdrawn from the case following pressure from the
authorities. In September 2003, further protests were held.

The continued activism of the Tieshu workers, despite ongoing repression,
reveals both the seriousness of the situation and the strength of feeling
behind the workers demands. However, in recent interviews after the violent
suppression on 8 February, several workers have said that they are now
maintaining a low profile in an effort to avoid official retribution.





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