VZCZCXRO9725
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4330/01 3310020
ZNR UUUUU ZZH
O 260020Z NOV 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1073
RUEHC/DEPT OF LABOR WASHDC IMMEDIATE
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE

UNCLAS SECTION 01 OF 02 BEIJING 004330 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ELAB EIND CH
SUBJECT: U.S. DOL SECRETARY CHAO ATTENDS WORK SAFETY FORUM 
 
1.(SBU) SUMMARY:  Secretary of Labor Elaine L. Chao, visited Beijing 
on Nov. 18, 2008, for the Fourth International Forum on Work Safety. 
 The Secretary encouraged the Chinese government to build on its 
legal framework for occupational health and safety, by strengthening 
supervision and education programs.  In a private meeting, Chinese 
officials admitted the difficulties of enforcing work safety 
guidelines.  They also outlined work safety objectives for the 
problematic coal mining sector, including closing one-half of all 
mines by 2010.  SAWS has made similar pledges in the past, which it 
has never fully honored.   The Secretary's visit was widely covered 
in the media and helped raise the profile of work safety issues. 
END SUMMARY. 
 
¶2. (U) Secretary of Labor Elaine L. Chao attended the Opening 
Ceremonies of the Fourth China International Forum on Work Safety on 
Nov. 18, 2008.  The biennial forum is sponsored by the State 
Administration of Worker Safety (SAWS) to both learn from the best 
practices of foreign countries in the areas of occupational health 
and safety, and to present Chinese progress.  This year's forum 
included a separate trade show of work safety equipment.  Secretary 
Chao was a featured speaker at the Opening Ceremonies. 
 
Work Safety Integral to China's Development Goals 
--------------------------------------------- ---- 
 
¶3. (U) Vice Premier Zhang Dejiang opened the forum by stressing the 
importance of workplace safety to the Chinese government.  He noted 
that the scientific development approach towards China's economy 
must include both a legal framework and a supervisory system for 
occupational health and safety.  He emphasized that work safety is a 
fundamental part of people's livelihood and thus must be an integral 
part of the government's development goals. 
 
U.S.:  Over A Century of Workplace Safety Efforts 
--------------------------------------------- ---- 
 
¶4. (U) Secretary Chao's address to the more than 400 conference 
attendees stressed the United States' century-long effort to improve 
workplace and mine safety - from the Mine Safety Act of 1891 to the 
Mine Improvement and Emergency Response Act of 2006.  She emphasized 
the importance of enforcement of relevant laws, citing the 66 
percent increase in the Mine Safety and Health Administration's 
(MSHA) enforcement actions between 2000 and 2007.  She added that a 
comprehensive work safety program must as also include worker 
education and training, and introduced the considerable education 
and outreach programs operated by the Occupational Safety and Health 
Administration (OSHA) and MSHA.  Secretary Chao introduced OSHA's 
Voluntary Protection Program (VPP) which allows companies to 
establish workplace safety, health and injury standards which exceed 
OSHA requirements.  These VPP firms report injury and illness rates 
50 percent the expected rate, and achieved annual savings of USD 230 
million.  Finally, the Secretary highlighted the cooperation between 
DOL and the Chinese Government, noting that last year, OSHA and 
MSHA's letters of understanding with their Chinese counterparts to 
share best practices in workplace and mine safety were extended to 
¶2011. 
 
China: Legal Framework Set; But Enforcement Lacking 
--------------------------------------------- ------ 
 
¶5. (U) The other guest speakers reiterated a common theme:  that 
China had made great progress in its legal framework to promote 
occupational safety and health, but the state's inspection and 
enforcement capabilities are still lacking.  ILO Director General 
Juan Somavia, in a recorded message, cautioned that work safety 
should not become a casualty of the current financial crisis. 
Australian Ambassador Geoff Raby strongly encouraged China to 
consider work safety as a key part of economic development.  Finnish 
Minister for Social Affairs and Health, Liisa Hysalla, emphasized 
that work safety was an integral and fundamental human rights 
issue. 
 
Evaluate Officials on Work Safety Results 
----------------------------------------- 
 
¶6. (U) SAWS Acting Minister Zhao Tiechui closed the opening 
ceremonies by sharing some of China's work safety achievements.  He 
noted that from 2002 to 2007, annual coal production jumped from 1.4 
billion tons to 2.5 billion tons, while the total number of mining 
fatalities dropped.  He encouraged the Chinese state at all levels 
to include work safety components in government officials' 
evaluation criteria, in addition to traditional economic development 
goals.  He admitted that the broad geographic distribution of some 
20,000 coal mines in China complicated SAWS efforts to enforce mine 
safety guidelines.  SAWS intends to work with the State Council to 
ensure that the smallest and most poorly equipped mines are closed. 
He said SAWS also intends to strengthen enforcement with a public 
"blacklist" of enterprises and mines with poor safety records. 
 
¶7. (SBU) Acting Minister Zhao hosted Secretary Chao to a lunch with 
SAWS representatives following the opening ceremonies.  He thanked 
 
BEIJING 00004330  002 OF 002 
 
 
the Secretary for her participation,  which he said would certainly 
raise the profile of this year's Work Safety Forum.  He noted that 
it was during her tenure that the letters of understanding with DOL 
were signed and extended.  Secretary Chao responded "it speaks 
volumes that China hosts this event," and said she was happy to 
offer her support.  China had made great strides, she continued, but 
it still needs a stronger system of enforcement combined with 
employee and employer training programs. 
 
New Safety Targets with Coal Mine Restructuring 
--------------------------------------------- -- 
 
¶8. (SBU) Mr. Ji Guoyou, briefed the Secretary on recent coal mine 
accidents.  Just days earlier, a small mine in Henan flooded. 
Thanks to advanced rescue methods, the Chinese had just learned 33 
miners had been saved, although there was one fatality.  He said the 
mine typified the safety problems of small mines - defined as those 
with production of less than 300,000 tons per annum and 30 to 200 
employees.  The Chinese intend to close many of these, and to 
publicly blacklist those with poor safety records.  By 2010, he 
said, China will reduce the number of coal mines to 10,000, and to 
keep coal production within 2.8 billion tons per annum.  SAWS will 
try to bring total fatalities to within 1 per million tons of coal 
mined for the industry overall, and for key state-owned mines to 0.3 
per million tons of coal.  This will place China's coal mine safety 
performance in the range of middle-developed countries, while the 
largest mines will begin to reach developed country safety rates. 
 
¶9. (SBU) SAWS Vice Minister Liang Jiakun described the State 
Administration for Coal Mine Safety, which has 25 provincial 
bureaus, 71 sub-bureaus, and some 3000 employees.  However, it still 
must oversee some 20,000 active coal mines, thus enforcement remains 
difficult.  VM Liang affirmed his respect for the U.S. system where 
once a law is passed, it is generally followed.  Secretary Chao 
explained the U.S. system had its own issues.  The open, transparent 
regulatory process is time consuming:  once a law is passed, the 
Department must draft regulations, submit them for public comment, 
redraft, and finally implement them.  But the result of such 
transparency is that workers and employers are well aware of laws 
once they are implemented, and thus they are generally law abiding. 
 
No More Free Lunches for Chinese Mine Inspectors 
--------------------------------------------- --- 
 
¶10. (SBU) SAWS Vice Minister Zhao Anqing thanked the Secretary for 
the exchanges she has facilitated for various SAWS members to visit 
the U.S. over the past years.  He noted such trips never failed to 
offer practical lessons.  During a visit with a mine inspector in 
Colorado, he was shocked to learn the man was 70 years old.  In 
China, an inspector would have to retire at age 60, whereas the U.S. 
system chose to value the inspector's experience.  He also learned 
that mine inspectors were not able to accept meals from the mining 
companies that they inspect.  He realized this was a huge cultural 
difference.  Yet inspired by the U.S. example, on his return, SAWS 
implemented the same requirement for its own inspectors, who now 
must buy their own meals. 
 
¶11. (SBU) Following the SAWS Work Safety Forum, the Secretary made a 
speech to 500 enthusiastic students at Tsinghua University, China's 
leading engineering and sciences school.  Students asked diverse 
questions about the state of the U.S. economy and how to how to 
overcome gender or minority discrimination in the workplace.  The 
Secretary encouraged them to have confidence in their contribution 
and to maintain a positive attitude. 
 
¶12. (SBU) COMMENT:  The Secretary's speech at the Work Safety Forum 
was widely covered in the Chinese press, and clearly helped raise 
the profile of the Forum in Chinese media.  While Chinese officials 
expressed admiration for the enforcement mechanisms of foreign 
countries, they did not elaborate much on their own initiatives.  It 
was not clear whether the enterprise "blacklist" would include other 
punitive measures, such as fines or temporary closures.  SAWS has 
made repeated pledges over the past several years to close small, 
dangerous mines which it has not been able to fully honor.  It was 
not clear that this most recent pledge on closures would be any 
different.  END COMMENT. 
 
¶13. (U) This cable was cleared by the Secretary's delegation.