The Chinese government has been forced to cancel the privatisation of a steel firm following worker protests, the country’s state-run media has reported.
The cancellation of the deal to sell state-owned Linzhou Steel in Henan province came after staff held an official hostage for four days.
It was the second time in under a month that worker militancy in the steel industry has halted a privatisation.
At the end of July, a boss at Tonghua Steel was killed in violent protests.
Plans to sell a stake in Tonghua to private firm Jianlong Steel were subsequently shelved.
In the latest case, the government had hoped to sell Linzhou Steel to another private business, Fengbao Iron & Steel.
The local official from Anyang, one of the main cities in Henan province, was released after the government pledged to abandon the takeover.
A growing number of workers at China’s numerous state-run steel firms are opposed to privatisations as they fear large scale redundancies resulting from moves to boost efficiency.
Linzhou employs 5,122 workers. –BBC News
Invoke Article 33 of the ILO constitution
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