About 100 retired teachers staged a sit-in protest against wage cuts outside government headquarters in Jiangsu province's Pizhou city last Wednesday, a labour watchdog reported yesterday. The teachers claim their benefits have been cut by 20 per cent since a new State Council policy came into force. They marched through the city and held the sit-in after their demands to meet government officials were refused, according to the China Labour Bulletin, which is run by exiled activist Han Dongfang. The Pizhou city government confirmed the protest had taken place, but said the problem had been resolved. A city official said: 'We have talked to [the teachers]. Now they understand our financial difficulties and accept the State Council policy. It's the decision of the State Council, not ours.' However, the labour group quoted local sources as saying the teachers might take further action if the Pizhou government failed to pay their full wages - which they still receive in retirement.