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Nanjing strike solved: LG spokeswoman

12-29-2011 15:07 BJT

An LG Display factory jolted by a strike by thousands of workers in East China's Jiangsu Province is preparing to resume operation after reaching an agreement with the factory's labor union, a spokeswoman with LG China said.

The strike in Nanjing started on Monday and escalated in the afternoon the next day with thousands of workers smashing property and overturning furniture in factory canteens and offices to demand higher year-end bonuses, according to videos and photos circulated online, qq.com reported.

"With the mediation of the government, we have reached an agreement with the labor union and basically solved the problem," spokeswoman Li Na said to the Global Times, declining to reveal details of the agreement. "A few workers are still in talks to settle the agreement," she said.

Workers were reported to be angered when they learned that unlike previous years when they received a year-end bonus totaling three months' wages, this year's bonus was cut by two-thirds, while Korean employees were still given a bonus equal to six months' salary.

Following the strike, which the report said involved 8,000 people at one point, while Li said the number was much less, the factory agreed on Tuesday night to raise the year-end bonus by half, according to qq.com.

LG Display, a producer of LCD modules for notebook computers and monitors, reported a $400 million loss for the third quarter this year amid a global slump in the LCD sector that has seen prices drop for 17 consecutive months, according to the company's statistics.

Li denied the bonus disparity and said that foreign employees did not receive extra bonuses as profits had shrunk.

"We have been handing out good year-end bonuses for the past several years because business was good then. The workers must have mistakenly thought that the year-end bonus was a guarantee instead of something that fluctuates based on the company's profits," Li said.

A series of strikes has been held in recent months by more assertive young workers mostly from rural areas, who have protested low salaries, wage cuts and poor conditions as companies cut back amid the global economic slowdown.

"You cannot raise the money every time workers make a scene," said a director surnamed Li with the Nanjing City Human Resources and Social Security Bureau, who is a member of the mediation team.

"In this case, the workers' demands are reasonable, but the factory was not violating the law. The two sides need peaceful negotiations instead of violence," Li said to the Global Times, confirming some workers had destroyed factory property.

The Global Times could not reach the workers yesterday.

 

Editor:Wang Xi |Source: Global Times

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