Workers force Beijing to reverse move

BEIJING: Chinese authorities have bowed to demands from protesting workers of a steel mill and suspended the process of privatizing the unit. The Communist Party has also promised to reconsider the decision to hand over the plant to the private sector.

This is the second occasion within a month when the party has indicated it is ready to listen to workers opposed to privatization of the steel industry, part of which suffers from overcapacity and inefficient management. It halted the privatization of the state-owned Tonghua Steel in Jilin province after angry workers assaulted and killed a company executive.

The latest move involves halting the takeover of Linzhou Iron and Steel by a private company, by Fengbao Iron & Steel Co Ltd. Linzhou workers began mass demonstrations against the move last Tuesday fearing many of them would be relieved of their jobs. Besides, Fengbao has a reputation for not paying wages in time, the workers complained.

The plant, which was set up in 1969, has 5,122 workers and pensioners on the regular payroll, has not been operating since last March after the government approved a plan to restructure it along commercial lines.