Stories
Hundreds of Chinese Chemical Workers Demand Compensation After Sudden Plant Shutdown
- •Hundreds of employees at Xuzhou Fengcheng Salt Chemical Co. in Jiangsu Province were locked out of their facility after returning from the National Day holiday.
- •Management announced production would not resume due to severe market conditions, leaving around 800 to 900 workers facing transfers or severance.
- •Tensions escalated as workers demanded clarity on compensation, prompting intervention from local authorities who promised legally required payouts.
- •Employees resisted relocation offers to affiliated businesses, insisting instead on receiving their severance based on years of service.
- •Financial difficulties at the plant were attributed to nationwide soda ash overcapacity and falling prices, leaving older workers worried about future employment.
Key Questions Answered
The plant was shut down due to severe market conditions, overcapacity, and falling prices that led to operational difficulties and financial losses. Production costs were around USD 194 per metric tonne while selling prices dropped slightly above USD 120.
The company offered severance payments calculated based on years of service, with smaller amounts paid in one installment and larger ones split into two. They also proposed transfers to affiliated businesses and a transition period featuring full wages for the first month and a living allowance for the second.
Workers discovered their factory access cards were deactivated after a holiday break and gathered at the facility to demand clarity, prompting police presence. While county authorities promised legally required compensation, workers opposed relocation options and remained concerned about potential payment delays.
