After protests by unpaid coal miners made headlines around the world last year as China’s National People’s Congress (NPC) was meeting, a US$15 billion assistance fund offered by the Chinese Communist Party became a symbol of the government’s need to ensure social stability.
As the congress gathers again a year later, the number of protests has dropped sharply and authorities are promising to create more jobs for workers in China’s northeastern belt where the employment outlook is grimmer than in many other parts of the country.
China is pledging to cut further excess and inefficient capacity in its mining sector and “smokestack” industries this year as part of an effort to upgrade its economy and reduce pollution, but the move threatens to throw millions more out of work.
Dozens of coal miners and laid-off workers in Shuangyashan, in Heilongjiang Province near Russia, said they were underemployed and underpaid, sometimes earning only a fifth of what they used to, despite rising living costs.
They said a heavy police presence was discouraging further mass protests.
“Security has become much tighter since last year’s protests, the police are everywhere, watching everything,” said Li, a 53-year-old who works in the nearby Dongbaowei coal mine.
“The government could owe me one year’s worth of wages and I would not protest again. It is just not worth it for us miners,” said another worker who said he was owed five months’ pay and who also declined to give his full name.
With a twice-a-decade leadership transition looming later this year, Beijing has focused on curbing mass unrest, including the US$15 billion fund for retraining, relocating and early retirement of an estimated 5 million to 6 million people.
“We were expecting a lot of possible unrest, but it seemed that something happened after Shuangyashan that stopped major waves of protests,” said Keegan Elmer of Hong Kong-based China Labor Bulletin (CLB), which tracks workers’ strikes in China.
The number of mining protests in China dropped from a high of 37 in January last year to six in December last year, CLB figures showed.
China has not released any comparison of its success rates with employment programs nationwide, and analysts say there is little transparency on how the funds are being spent. However, workers in some other parts of China have similar tales to tell.
In Hebei Province, more than 2,000km to the south, a 55-year-old former steelworker said he now makes 1,000 yuan (US$145) a month — a quarter of his previous salary — as a security guard.
The man, who only identified himself as Wang, said he was luckier than most.
Other laid-off workers said they had to return to their farms, where they could hope for little more than subsistence.
This year, new jobs will be found for half a million steel and coal workers as capacity is cut in those industries, Chinese Minister of Human Resources and Social Security Yin Weimin (尹蔚民) said on Wednesday.
“As overcapacity is cut, we must provide assistance to laid-off workers,” Chinese Premier Li Keqiang (李克強) said at the opening of the NPC on Sunday.
Unlike the more affluent south, China’s rust belt has few other jobs to offer, prompting some local governments to offer menial work while state firms keep staff, but pay them much less.
Heilongjiang state coal producer Longmay received more than 800 million yuan from the new fund last year to help it deal with coal output cuts and reallocating workers to other jobs, according to a government document.
“This is not a job, at least not a real job,” said Peng Jianting, 51, who used to earn 3,000 yuan a month as a miner and now earns 500 yuan as a street sweeper.
The firm declined to comment.
In Shanxi Province, which accounts for a quarter of China’s coal production, the deputy governor says its state-owned enterprises owed 5.46 billion yuan in outstanding wages, Xinhua news agency reported.
“The state sector acts as a semi-safety net. Rather than lay off a lot of workers, they typically will freeze wage increases, so you don’t get the same levels of unemployment as you would in other economies when there’s a downturn,” Capital Economics economist Julian Evans-Pritchard said.
China’s official unemployment rate — which only accounts for urban, registered residents — has held around 4 percent for years, despite a slowdown that has seen growth cool from the double-digits to quarter-century lows of less than 7 percent.
“The [assistance] fund was never really big enough to cope with the number of workers that has been shed in these sectors,” Evans-Pritchard said. “It doesn’t surprise me that a lot of workers aren’t benefiting from the fund. I think they need to increase the scale significantly.”
Media said last year that more than half a million laid-off workers were now driving for ride-sharing services, in line with a government push for them to become a part of the “new” economy.
That option does not exist for Wu Yilin, a coal miner in Shuangyashan who moved to an office job after he lost his thumb in a workplace accident.
“We are told to start our own businesses, but we just become street cleaners instead. You need money, connections to become an entrepreneur. It is not as if everyone can do it,” Wu said.
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