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Authorities fail to learn the lessons of state-owned enterprise reform

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Two major strikes over the last two weeks have shown that some local governments and managements have still not learnt important lessons from the privatization of state-owned enterprises (SOEs) at the turn of the century. The protests at the state-owned Golden Emperor Group textile plant in Chongqing’s Fuling district on 13 and 14 April, and the former state-owned Yimian textile factory in Baoding, Hebei, in the first week of April erupted for precisely the same reasons as in the majority of SOE privatization disputes a decade ago: wages arrears, inadequate compensation for lay offs and the misappropriation of assets by management.

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