Layoffs: Shanghai Firm’s Employees Come Out In Protest Against Several Job Cuts, Clash With Police, Says Report

Workers from the state-owned Shanghai Guoli Automotive Leather Decoration Co on Wednesday clashed with the police as the protest on the Husong Highway resulted in a major traffic jam

Several hundred employees at a firm in Shanghai came out in protest of mass layoffs and blocked a major highway in the city, media reports said. Workers from the state-owned Shanghai Guoli Automotive Leather Decoration Co on Wednesday clashed with the police as the protest on the Husong Highway resulted in a major traffic jam, reported Radio Free Asia.

The confrontation between the workers and police was shared via a video footage on social media, reported ANI. At least one employee of the automotive trim firm was taken into custody by the policy and this resutled in other employees shouting and becoming a part of the altercation.

The protests initially began after workers received a notice on October 9 which offered a severance of three months minimum wage to employees who resigned voluntarily, coming up to 8,070 yuan. 

Several social media posts from the individuals who claimed to be employees of the firm claimed that the voluntary resignations were not truly voluntary. Workers argued that they should be entitled to compensation of three months on the basis of their average wage in the last 12 months. 

This dispute highlights the increase in labour conflicts as China’s economy continues to struggle post the Covid-19 pandemic.

The China Dissent Monitor, which is involved in tracking these events, noted that protests by consumers and investors climbed in response to the sluggish economy. The report pointed out that multiple grievances emerge from the actions of private firms, almost 40 per cent of these protests have called out for government to intervene in the matter.

The report cited a complaints division official of the local Qibao township government and said that employees at the Shanghai plant went into conflict with their employer in October. Meanwhile, a representative from the Qibao township police department said that authorities don’t plan to get involved in the labour dispute, apart from preventing individuals from blocking the highway.