China / Hot Issues

Xinfei workers end strike after pay deal

(Xinhua) Updated: 2012-10-15 16:44

ZHENGZHOU - Production resumed at a Sino-Singapore electrical appliance joint venture in Central China's Henan province on Monday after the employer agreed on a pay rise.

Workers reached agreement with Henan Xinfei Electric Co Ltd, that they should receive a pay rise of 300 yuan ($48) a month starting from October and another rise of 200 yuan a month from the beginning of 2013.

The company also promised to pay subsidies for working in high heat and long hours, in accordance with Chinese laws and regulations.

Small-scale strikes broke out at one of the company's three plants in Xinxiang city on Tuesday. Numbers of protesting workers grew forcing production to be suspended on Wednesday.

The protesters agreed on Friday to engage in a negotiation with the company's major shareholder, Singapore-based Hong Leong Asia.

The plants have more than 6,000 workers on the payroll, the president of the company Wu Juncai said.

Workers had been disgruntled with their lower-than-average salary for a long time. The monthly salary in Xinfei is 1,200 yuan, lower than the city's 2011 average salary of 2,160 yuan a month.

Through negotiation, the employer also agreed to reinstall a former production manager, and dismiss a personnel manager and a deputy production manager upon the workers' request.

Workers attributed poor management to the declining performance and a financial deficit at the company, which specializes in refrigerators, air-conditioners and wine-chillers.

The Xinxiang city government got involved in pushing for the labor negotiation in Xinfei after the protest broke out.

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