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Privatization hits Chinese steel wall

In less than a month workers have been able to halt twice the privatization attempt of a Chinese steel plant. In an effort to improve the inefficient industry Beijing has tried to take this step, but they have come under serious protest. Last month, a crowd assaulted and killed an executive who was managing the acquisition of state-owned Tonghua Steel in northeast Jilin province.
  The demonstration began on Tuesday and only ended on Saturday after a government mediation team promised to temporarily call off the deal. China is trying to force consolidation of its sprawling steel industry, the largest in the world, accounting for about 38% of global production last year. The central government's policy of encouraging mergers and privatizations of has faced heated resistance by workers .But the violence and success of recent instances stands out.
   All China Federation of Trade Unions said that corporate restructuring plans would be deemed invalid without express approval from workers. They also raised concerns that the process lack of openness had aroused workers' suspicions and caused the outbursts of violence.
   China, the world's top producer and consumer of steel, has been trying to consolidate the industry. But all its efforts seems to have hit a steel wall as fear of job losses are resulting in protest which often turn violent.





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