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SCMP Reporter

Up to 40 people are trapped inside a cotton factory as 1,000 protesters halt output

About 1,000 protesters continued to block a cotton factory in Xianyang , Shaanxi province , yesterday as a dispute over prospective layoff compensation entered a  second week.

The crowd, which started to assemble on Tuesday last week, has effectively shut off the factory.

Up to  40 company officials and workers are being  held  in the building.

The protest stems from the recent acquisition of the No7 cotton works in Xianyang, originally run by the Tianwang Group, by Hong Kong's China Resources Group.

One trapped worker, named only as Mr Yin, said  as many as 10,000  protesters, including workers and their relatives, had gathered in front of the factory gate at one point.

One  employee who had stopped working  said the demonstration had continued despite the rain.  He said thousands of police had been deployed to monitor the group and maintain order.

Mr Yin said workers were dissatisfied with the new employer's initial request that  the 5,000 employees  undergo a new probationary period of three to six months. The salary offered for the probation period was only slightly more than a government living allowance in Xianyang, Mr Yin said.

Another worker  said the company had later agreed to scrap the arrangement. 'It's far from satisfactory and the protest will go on unless we are fully compensated,' he said.

The protesters are also dissatisfied with the compensation offered by the new company to about 1,000 workers to be made redundant after the acquisition.

Mr Yin said the workers were told China Resources was a state-controlled firm. 'If [China Resources] is seen as a state enterprise, they will not be required to compensate us for those years we worked for the firm before the merger,' he said.

A spokeswoman for China Resources in Hong Kong,  yesterday said the dispute was over and had not  involved the company.

'The protests were settled on Tuesday,' she said. 'In any case, the dispute was originally between the workers and the local authorities and we are not involved ... We are only just now in the process of taking over the factory.'

She would not comment on whether China Resources intended to lay off any staff from the factory.

But workers rejected suggestions the issue was settled. 'The protest is over? Then why am I still trapped in this factory?' Mr Yin asked.

He said the people inside the factory had received  food and  water but had not been allowed to leave. 'The protesters claim no one is allowed to leave or enter the factory. The police are there simply to keep order,' he said.

No mainland media have covered the protest and city  newspapers have been told to stay away.

Additional reporting by Robin Kwong



Compensation row leads to workers taking 'hostages'