Executive killed by angry workers
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Chinese steelworkers clashed with police in a protest over plans to merge their mill with another company and beat the company’s general manager to death. Several hundred people were injured in the clash in the northeastern city of Tonghua. Workers had gathered to protest the takeover of their company and threatened layoffs. According to police, around 1,000 protesters gathered in the company’s office building to protest the potential takeover.
Employees of Tonghua Iron and Steel Group object to plans for Jianlong Steel to take control of the company. Beijing-based Jianlong controlled the company temporarily last year, and employees blame Jianlong for financial problems suffered during that time. Jianlong took over Tonghua last year but suffered losses after steel prices dropped and jettisoned the company, then revived the takeover plan this year after steel prices rebounded, making the business profitable again.
Angry Tonghua employees attacked Jianlong general manager, Chen Guojun, during the protest and beat him to death. Workers were angry that Chen was paid some 3 million yuan ($438,000) last year while some retirees received as little as 200 yuan ($29) a month.
Beijing is trying to streamline China’s sprawling steel industry, the world’s largest, by orchestrating a series of mergers aimed at creating globally competitive producers. The mergers often are accompanied by layoffs that sometimes spark complaints that workers receive too little severance pay.
Chinese state media confirmed that a steel factory executive was beaten to death after thousands of workers gathered to protest the takeover of their company. Zhang Zhidong, spokesman for the Tonghua Iron and Steel Co, said it would be impossible for the protest, which culminated in the beating death of an executive, to have involved 30,000 people, as was reported by Reuters and AFP, according to China Daily.
“We only have 13,000 on the payroll,” Zhang said.
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