Coal news and updates

Thousands of miners marched through the streets of a coal town in north-easternChina over the weekend protesting against unpaid wages, as the country grapples with rising unemployment due to overcapacity in heavy industries.

The protesters are employees at Shuangyashan Mine, owned by Longmay Group. During the march they held up banners saying: “We want to live, we want to eat,” according to photographs posted on social media.

As China’s economy slows, the government is trying to cut overcapacity in labour-intensive industries like coal and steel but this has prompted fears the country might face its fiercest unemployment pressures since the late 1990s.

The workers claim they are owed unpaid wages and some are angry that their pay has been cut to 800 yuan ($123.19) a month, from 1,000 yuan, according to local media reports.

“Thousands of people have been protesting,” a witness said. The witness declined to give their name for fear of reprisal from the authorities.

“The police have been taking people away,” they said.

A statement posted on a Heilongjiang government website on Saturday night acknowledged some employees were owed wages but did not mention the protests.

Reuters was unable to contact Longmay, local police or the Heilongjiang government on Sunday.

A rapid collapse in the prices of oil and coal, two of Heilongjiang’s major industries, and inefficiency and overmanning at state-owned enterprises have compounded problems for the province, Lu Hao, the governor of Heilongjiang, said at a session last week of China’s annual parliament.

The firm said last year that it would adopt a “wartime work atmosphere” to cut its bloated 248,000 headcount by as much as 100,000. It has been making losses since 2012.

Longmay coal miners are reemployed locally and some will be transferred to farming, Lu said, adding that local state farms have cultivated additional land, while the local forest bureau has increased forest land to provide jobs.

“It is most important that we have to train those transferred workers with new skills, create new market opportunities and encourage their willingness to run their own businesses,” Lu said.

“They have expressed their willingness to learn new skills but some are not adaptable, which requires our local governments, party and enterprises to help them to learn new skills and find new job opportunities.“

Sources have told Reuters that China is expecting to lay off five million to six million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution.

Source: The Guardian