The New York Times

Thursday, December 9, 1999

Protest at Chinese Steel Mill

By The Associated Press

BEIJING (AP) -- About 2,000 retired workers protesting reductions in their pensions clashed with police Thursday in front of a steel mill in southwest China, a human rights group reported.

Six people were detained, and four were injured, the Hong Kong-based Information Center of Human Rights and Democratic Movement in China reported.

The protest began Wednesday when the retired workers occupied roads and blocked traffic near the Chongqing Special Steel Plant. The demonstrators dispersed during the night, but returned Thursday to battle about 100 police at the factory's gates, the center reported.

The pensioners were angry that their monthly stipends of about $35 had been cut by almost a third due to poor company profits, the center said.

Hurt by a glut in steel production, the Chongqing Special Steel plant has been slashing its work force and cutting back on wages and benefits. About 4,000 of the factory's 12,000 workers have been laid off, and the company has been struggling to support 6,000 pensioners, the Information Center said.

Thousands of factories have been shedding workers as China's state-run industries switch from central planning to a market economy. Layoffs and pay cuts have provoked protests across the country.