CHINA: Chinese factory employees and the U.S. executive, previously held captive, reach a resolution to a row over pay

Record ID: 567032

  • Title: CHINA: Chinese factory employees and the U.S. executive, previously held captive, reach a resolution to a row over pay
  • Date: 27th June 2013
  • Summary: BEIJING, CHINA (JUNE 27, 2013) (REUTERS) EXTERIOR OF SPECIALTY MEDICAL SUPPLIES FACTORY SIGN ON BUILDING READING: " SPECIALTY MEDICAL SUPPLIES" VARIOUS OF PEOPLE STANDING OUTSIDE FACTORY GATE FACTORY GATE PEOPLE STANDING INSIDE THE FACTORY WORKERS SITTING WORKERS TALKING WORKERS SITTING AND A WOMAN COVERING HER FACE WITH HAND CONFERENCE ROOM JOURNALISTS (SOUNDBITE) (Mandarin) SPECIALTY MEDICAL SUPPLIES GENERAL MANAGER XING SHUANG SAYING: "So, as of now my boss Chip feels exhausted after two difficult days and has gone back to a hotel, okay? This is all I have to say." JOURNALISTS (SOUNDBITE) (Mandarin) HEAD OF RIGHTS AND INTERESTS DEPARTMENT OF LABOUR UNION IN BEIJING'S HUAIROU DISTRICT, CHU LIXIANG SAYING: "The mass labour dispute incident for this unit has been resolved. Both sides have come to an agreement through joint efforts made by Mr. Starnes and the workers' side. The results have turned out to be satisfactory." JOURNALISTS (SOUNDBITE) (Mandarin) HEAD OF RIGHTS AND INTERESTS DEPARTMENT OF LABOUR UNION IN BEIJING'S HUAIROU DISTRICT, CHU LIXIANG SAYING: "An agreement has already been reached. We have signed the agreement. Salary and financial compensation (for the workers) should be not a problem." VARIOUS OF CHU SHOWING SIGNED MEDIATION AGREEMENT TO MEDIA VARIOUS OF WORKERS LEAVING FACTORY
  • Embargoed: 12th July 2013 13:00
  • Keywords:
  • Location: China
  • Country: China
  • Topics: Business,Industry
  • Reuters ID: LVAG4S4I7SHX5ZX2YVWKKWKY8G1
  • Story Text: A U.S. executive and Chinese workers who held him captive for six days reached a resolution to to a row about pay on Thursday (June 27).
    Chip Starnes, President of the Florida-based Specialty Medical Supplies was held captive by about 100 of his own workers on the outskirts of Beijing since last Friday (June 21).
    Xing Shuang, general manager for Specialty Medical Supplies said Starnes has left the factory.

    "So, as of now my boss Chip feels exhausted after two harsh days and has gone back to a hotel, okay? This is all I have to say," he said.
    The workers' demands followed rumours that the entire plant was being closed after the company's plastic injection molding division began a move to India to lower production costs. Starnes has said no more layoffs were planned.
    After rounds of negotiations between Starnes and the workers as well as mediation efforts from the local labour administration and labour union, Chu Lixiang, head of the rights and interests department of the Huairou District Labour Union said the stand-off was resolved.

    "The mass labour dispute incident for this unit has been resolved. Both sides have come to an agreement through joint efforts made by Mr. Starnes and the workers' side. The results have turned out to be satisfactory," she said.
    Chu added that the written agreement between the two sides was signed early Thursday morning.

    "An agreement has already been reached. We have signed the agreement. Salary and financial compensation (for the workers) should be not a problem," Chu said.
    The six-day-old stand-off in the suburb of Huairou, not far from sections of the Great Wall, has highlighted one of the lesser known risks of doing business in China, where the level of trust between workers and managers is low and faith in the legal system is weak.
    Angry employees holding employers captive is not uncommon in China, according to consultants and lawyers. Detailed figures are difficult to obtain, but the cases often arise out of a mix of mistrust, mismanagement and desperation.
    Starnes told media on Wednesday (June 26) that his company has plans to keep the factory in China, and that he plans to spend the next two weeks in Beijing before returning to the U.S..
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