Adrià Calatayud
Beijing, 29 February (EFE) .- China plans to lay off 1.8 million workers in the coal and steel within the strategy of industrial restructuring driven by Beijing to end its chronic overcapacity.
This was announced today the Chinese Minister of Human Resources and Social Security Yin Weimin, at a press conference in which, for the first time, the Government of China put figures to the social cost will have their plans.
Along with industrial restructuring, the Chinese minister also said the government is finalizing a plan to slow gradually the retirement age, which is now 60 years for men and 55 or 50 years for women, according to the work they perform.
Yin stressed the difficulties that Chinese industry is facing due to the economic transition of the country and excesses capacity that exist in certain sectors, so he warned that in some cases there will be no choice but to take losses of jobs.
“Although it is a difficult task, we are very confident that with the efforts of all parties, we will try to do well this transition a positive and sensible way, “said the responsible use of China.
companies will have the primary responsibility to offer new jobs to workers who no longer necessary, Yin said, adding that for those who have to leave companies, local governments prepare training programs said.
in addition, the voluntary retirement of employees will be encouraged to have reached the age minimum retirement.
the Chinese government moved last week to establish a fund of 100.000 billion yuan (15.300 million, 13.800 million euros) to assist those who lose their jobs in the restructuring process industry.
According to figures provided today by the Minister of Human Resources, of the 1.8 million planned layoffs, 1.3 million will be in the coal sector and the remaining half million in the steel industry , but did not say when it will be effective.
the coal and steel industries are designated by Beijing to start eliminating overcapacity and businesses that the authorities have dubbed “zombies” indebted and loss-making firms that survive only with the support of local governments.
the Council of State (Executive) of China predicted earlier this month that over the next five years, will cut its production capacity of coal at 500 million tons per year, 9% of the current, and between 100 and 150 million tons annual production capacity of steel between 8.3% and 12.5%.
in both sectors, the Asian country is the largest producer and consumer, and in the case of steel its factories produce more each year than twice that of its four immediate competitors (Japan, India, United States and Russia) together.
China dragged on for years that problem that hampers the competitiveness of heavy sectors dominated by public companies, and that has caused deflation in wholesale prices since 2012.
in addition, a report published last week by the Chamber of Commerce of the European Union in China week attributed to overcapacity trade tensions that exist between the Asian power and Twenty-eight, and warned of its “destructive” impact on both the global economy and local.
This is one of the structural reforms that Beijing pursued for years, but has been postponed by the reluctance of local authorities, fearing the possible consequences for employment.
the rate of urban unemployment in China, a country which does not disclose unemployment in rural areas stood at 4.05% at the end of last year, after the creation of 13.12 million new jobs.
However, in 2015 occurred in China 2,774 strikes and labor protests, twice in 2014, according to the China NGO labor Bulletin, which links this rising agitation with the difficulties generated for many companies the economic slowdown, especially in industrial areas.
the statements made in recent weeks by Chinese leaders show they are willing to clean up the affected sectors, even if it results in the form of layoffs and new measures in this regard in the annual plenary session of the National People’s Congress (Legislative) starting this week are expected.
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