Monday, September 28, 2015

Signposts: Chinese Coal Miner Heilongjiang Longmay Lays Off 100,000 Workers

For CO2 buffs, the company supplies coking coal used to make steel rather than thermal coal, used to generate electricity.
From the Times of India:

In biggest layoff in China, coal company axes 100,000 workers
BEIJING: A coal company announced the biggest layoff seen in China in recent years as it is set to relieve 100,000 workers accounting for 40% of its labour force. 
The announcement came in the midst of Chinese president Xi Jinping's ongoing tour to the United States, where he assured politicians and businessmen that China's economy will achieve the targeted 7% growth in gross domestic product. 
Much of China's clout in the US is based on its economic achievements in past years. But the Chinese economy has slid from the earlier 10% growth level to the present situation where it is struggling to achieve 7%. 
Heilongjiang Longmay Mining Holding Group Co Ltd. said it was taking action to reduce recurring losses, and will bring about the labour cut in the next three months. It has 240,000 workers on the rolls at present. 
Company chairman Wang Zhikui said the job cut was a measure adopted to "stop bleeding" the company....MORE
Heilongjiang Longmay is the largest state owned enterprise in Heilongjiang province.
By-the-bye, state owned enterprises's were the subject of this morning's piece by the Financial Times' David Keohane:
SOE you think you can reform? Mixed-ownership edition