On 20 August 2003, 500 to 600 workers from the now defunct Suizhou Fuel Pump and Nozzle Factory in Hubei Province, protested outside the Suizhou Municipal Government to demand a legal and fair policy in resolving the problems faced by workers affected by the factory's bankruptcy. According to the workers, in the process of bankruptcy of the former state owned enterprise (SOE), the government had agreed to only give workers 600 Yuan for each year of service giving a worker who had worked there for some 30 years a total of less than 20,000 Yuan. For those who had already taken retirement, the conditions offered were even worse. They were told that their medical insurance would only cover them up to the age of 60 or the age of formal retirement, which varies according to gender (ordinary women workers retire at 50 while male workers retire at 55). Formally retired workers were told they could only have medical expenses reimbursed if the condition was incurable or fatal (CHECK) The factory was reported to have only paid its pension premiums until 1997 which left formally retired workers without their full pensions.
On 2 September, more than 700 workers took the same marching route to the government offices carrying banners, slogans and singing songs of protest. They raised banners; "The Party serves the public & policy helps the People" and The People's Interests are no small matter". During a six hour indoor negotiation between workers' representatives and government officials, workers outside the building sang "Socialism is Great".
In the majority of worker protests monitored by CLB, workers usually say that the local trade union is at best useless and at worst, obstructive or hostile. Throughout China the role of the ACFTU in state owned enterprises is dwindling further, leaving them as little more than an empty branch of factory managment. In those factories undergoing restructuring or moving towards bankruptcy, the situation becomes almost farcical, as the factory trade union reduces in size as the workers are forcibly laid off or retired. The trade union effectively exists in name alone, with neither the power nor the will to support workers demands for equitable retrenchment or retirement policies.
In interviews with the Trade Union branch at the now bankrupt Suizhou Fuel Pump and Nozzle Factory, China Labour Bulletin learned that the union had only two members left: the chairman and another union official. The rest of the membership had either been laid off from the factory or had already retired. The official union played no role in the protests in August and September, nor did they even know about the workers actions until after the event.
Increasingly, workers are beginning to take matters into their own hands and, denied the right to form their own unions, they are establishing worker representative groups -- or, as in the case of the Suizhou Fuel Pump and Nozzle Factory, their own supervisory group to lead their protests and to conduct any negotiations with management and the local government.
When asked by Han Dongfang if the trade union had ever represented the Suizhou Fuel Pump and Nozzle Factory workers in their demands during restructuring, a union representative replied:
Trade Union Official:
[laughs] ... The protestors formed an organization called a "supervision group" and basically they take care of everything
nobody bothers to talk to the trade union.
Han Dongfang:
Why not?
Trade Union Official:
How do I know?
When further pushed as to why the workers feel the trade union is not useful. The official went on to say:
Trade Union Official:
Of course they think like this.
The same union official went on to tell CLB that not only did she find the retrenchment levels offered workers to be unreasonably low, but also that she was one of them and in fact:
Han:
But why do they think like this?
Trade Union Official:
That is also my own opinion. [laugh]
If it wasnt for my job here [in the trade union], I would have joined the protest too.
The official added that it was impossible for the trade union to be active in this protest.
Han:
Really?
Trade Union Official:
Of course [laugh].
Han:
However, the ACFTU keeps encouraging trade unions to represent the workers in guarding their rights, so isnt it your responsibility to take part [in the protest]?
Hmm... in my understanding, the trade union cant represent the workers.
Han:
How come?
Trade Union Official:
You can come here and take a look: our factory went bankrupt and those auditing groups and work groups are taking over the management work. As a trade union, we have to report everything to those auditing groups and work groups and they are our boss.
Han:
Do you have to report to the newly formed workers' organization then?
Trade Union Official:
Oh no, not to them. That "supervision group" was formed by workers. ..
Han:
Then before and during the bankruptcy process, has the trade union ever fought for workers' rights?
Trade Union Official:
Of course we have. Our chairman used to work alongside the auditing group and work groups and fix some internal affairs in the factory... but later... the work groups only take in people from the municipal government and no one from the factory is allowed to join.
According to the union chairperson, also interviewed by CLB, [ the union is excluded from discussions and decision making at the factory. This is despite the clear stipulations of the PRC Labour Law, Article 38 of which states:
When discussing major issues on operation, management and development, the enterprise or institution shall listen to the opinions of trade union. The trade union in an enterprise or institution shall have its representative(s) attending any meetings held by the enterprise or institution to discuss matters on wages, welfare, occupational safety and health, social insurance and other questions related to the immediate interests of the workers and staff members.
However, in a double bind for the union, the article goes on to state not only that An enterprise or institution shall support the trade union in carrying out its activities in accordance with law, but also that the trade union shall support the enterprise or institution in exercising its power of operation and management in accordance with law. This serves to further force the union into supporting management decisions.
In the conversation with the union chair, CLB learned that the trade union was indeed taking no part in the dispute. In a telling statement that reveals the official trade unions current subordination to the Communist Party:
Trade Union Chairman:
No, not the trade union. We have to follow the party committee's instructions.... It is required that trade union has to be under the party committee. Now the party committee asked us to do ideological work with the workers - to instill in them the right kind of thoughts.
However the Chairperson concluded that;
In guarding the workers' rights.... we have to do it
We would support any reasonable demands by the workers, for example, to do with medical insurance, pension insurance... because these demands do make sense, to defend their livelihood after the factory's bankruptcy when they have all lost their means of making a living. We do support these reasonable and rightful demands and we are required by the State to promise the workers these things, otherwise they won't let us go easily. All in all, the trade union should try to guard the workers' rights.
For the full interview please see the transcript of the interview