Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UPDATE 1-Shanghai port strike dwindles, gripes remain

Published 04/25/2011, 05:44 AM
Updated 04/25/2011, 05:48 AM

* Truckers back at work in country's busiest container port

* Discontent remains high; risk of copycat strikes (Recasts, adds quotes)

By Michael Martina

SHANGHAI, April 25 (Reuters) - Truck drivers returned to work on Monday after Shanghai took steps to a defuse a strike at China's busiest container port, leaving some drivers demanding more and setting an example of militancy that may embolden other restive workers.

The strike, which began on Wednesday and disrupted shipments at the port, was a brief but telling symptom of the pressures over rising inflation that are making the government jittery.

"The resolution to this matter is not good enough -- not everyone is satisfied," said a driver surnamed Fan, 28, from the landlocked and poor central province of Henan.

Over the weekend, the city government cut fees to cool anger over high fuel prices among the independent contractors who haul goods to and from the city's string of ports. Many drivers working as company employees on fixed wages did not join the protest.

The drivers have complained about high operating costs, citing fuel-price increases, low salaries, and irregular fees and fines imposed by authorities. Some said logistics companies were colluding to charge them higher fees.

By Monday morning, it appeared that the Shanghai government's push to douse the discontent was working. Roads leading to the city's docks were busy with traffic.

But several drivers said despite their success in cutting fees, making a decent living from the fiercely competitive trucking sector would remain tough.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"The government's response has been fairly reasonable, but this is largely a problem with the market. With so many drivers out there competition is tough, and it won't be so easy to fix," said Li Wenbing, a 31-year-old truck driver from Henan province, home to many of the aggrieved drivers.

"The government's new regulation won't have much impact on my wages. At least after four days parked here I am well rested."

RISK OF COPYCAT STRIKES

Large numbers of police officers continued to line streets around the Baoshan port area, and officials had set up a half dozen outdoor stands where drivers could register any complaints.

Truckers are only one of many groups in China unhappy about rising costs. Taxi drivers frequently strike over government rules and fuel costs.

While no other groups have publicly said they follow the truck drivers' example, the country has a recent history of copycat strikes.

Work stoppages at foreign automakers in southern China last summer yielded sharp wage increases for workers, inspiring a wave of labour disputes that disrupted the operations of many foreign manufactureres and raised questions about the region's future as a low-cost manufacturing base.

None of the truckers interviewed by Reuters said they planned to go back on strike, and some said they had little choice but to continue working.

"Ninety-five percent of the drivers you see here come from farms and have borrowed money from family or the government to buy their trucks," said Fan. "If you don't drive, you can't repay your loans."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

China said in early April it would raise retail gasoline and diesel prices by 5-5.5 percent to record highs.[ID:nSGE736009]

The Party leadership is especially jumpy about threats to its control following online calls for "Jasmine Revolution" protests inspired by anti-authoritarian uprisings across the Arab world, and has detained dozens of dissidents.

But the Chinese government has also said it wants to channel more wealth to workers and farmers, and narrow an income gap that has fed public ire.

When workers at Japanese-owned vehicle parts suppliers struck in southern China last year, officials encouraged the companies to offer wage rises and other gains. (Writing by Chris Buckley in BEIJING, editing by Jonathan Thatcher)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.