Labour conflicts stir up underlying social crisis

On 8 November 2005, Workers' Daily carried a report titled "An examination of the implementation of the Labour Law: surfacing of deep-rooted labour conflicts in Gansu Province". It revealed that 226,100 workers from 2,857 enterprises were owed wages of 882 million yuan until the end of 2004, which meant an average of 3,900 yuan per head. By September 2005, the employers' overdue pension premium and unemployment premium have reached 160 million yuan and 353 million yuan respectively. Thirteen of the province's 14 cities (prefectures) have deficits in pension fund. Reportedly, there are 463 labour inspectors in the province. Without enough funding and necessary conditions to carry out their tasks, the labour inspectors have been unable to investigate some cases of labour rights violations.

On 26 October, Xinhuanet reported that in researching the implementation of the Agriculture Law, the Standing Committee of National People's Congress (NPCSC) found that migrant workers were working excessive hours, receiving extremely low pay and leading an insecure life. The research shows that the average monthly income of migrant workers was 780 Yuan in 2004, which is only 58 % of workers with urban residency. More than half of the occupational illness victims in China are rural migrant workers, and migrant workers account for more than 90% of the deaths in industrial accidents. Conflicts due to farmland seizure have increased over the recent years. The NPCSC's Complaints Office accepted 2,938 complaints about land seizure in 2003 and the figure rose to 5,407 in 2004. In the first seven months of 2005, the complaints have already reached 4,182. These complaints are mainly related to local governments' forcible land seizure and unreasonable compensation and resettlement.

On 9 November, Workers' Daily reported that Sifang Installation Company in Feicheng City, Shandong Province, owed 101 migrant workers their wages for more than one year. On 12 August 2002, the company signed a construction contract with Jining City's Regenerated Resources Company. The contract said that Regenerated Resources Company would give Sifang Installation a one-off payment within one month after the project was completed. Yet, Regenerated Resources Company later accused Sifang Installation of providing "substandard work" and refused to pay 1.33 million yuan of construction fee. Sifang Installation was unable to pay the 101 migrant workers their wages, which was several thousand yuan for each worker. The workers got even angrier and raised their eyebrows when they recently read a report in a local newspaper which said: "During a meeting on 27 September 2005, the Construction Department of Shandong Province announced that 3.174 billion yuan in unpaid wages owed to rural migrant workers in the province have basically been repaid".

16 November 2005
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