VZCZCXYZ0002
RR RUEHWEB

DE RUEHGZ #0714 3430912
ZNR UUUUU ZZH
R 080912Z DEC 08
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 0054
INFO RUEHGZ/CHINA POSTS COLLECTIVE 0018
RUEAIIA/CIA WASHDC 0018
RUEKJCS/DIA WASHDC 0018
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS GUANGZHOU 000714 
 
SIPDIS 
 
STATE FOR EAP/CM, DRL 
 
E.O. 12958: N/A 
TAGS: ELAB PGOV CH
SUBJECT: Guangzhou Taxi Strike: Collective Bargaining, Taxi Style 
 
¶1. Summary: Though downplayed by the official media as "taking a day 
off" or "having tea," Guangzhou's taxi strike was accompanied by 
rumors of violence and fear of physical danger.  Drivers willing to 
risk retribution from colleagues found working during the strike 
lucrative, while others, ordered to work but fearful of retribution, 
reportedly passed the time playing cards.  Taxi drivers and 
government leaders alike probably viewed Bo Xilai's peaceful 
meetings with Chongqing's striking taxi drivers in November as a 
precedent for handling the strike in Guangzhou.  End summary. 
 
¶2. Taxis were scarce December 1, when, according to Reuters, 4,000 
of Guangzhou's 18,000 taxis refused to work and demanded a fee 
reduction by the government.  Though characterized by the official 
media as peaceful and lackadaisical, scuffles between taxi drivers 
and police a week earlier and rumors of isolated violence between 
cabbies during the strike suggested this was more than a tea party. 
The government, which simultaneously launched a campaign against 
illegal taxis, avoided a prolonged strike by reducing the monthly 
taxi rental fee by RMB 500 (approximately USD 73) and eliminating a 
RMB 300 (approximately USD 44) monthly parking fee.  Some taxi 
drivers subsequently complained that the concessions were too 
meager, noting that the fee reductions would defray only a small 
part of the more than RMB 10,000 (approximately USD 1455) in total 
monthly taxi fees they faced, according to China Daily. 
 
Running the Gauntlet a Lucrative Endeavor 
----------------------------------------- 
 
¶3. Drivers unwilling to go on "holiday" feared retribution at the 
hands of striking colleagues, according to multiple drivers.  One 
driver with the Bai Yun Taxi Company refused to take passengers 
through slow-moving streets, insisting instead on keeping to 
Guangzhou's elevated highways to reduce the chance of being seen and 
punished by striking drivers.  In an effort to camouflage his taxi's 
working status, another driver with the Guang Jun Taxi Company 
started the meter, then placed a cardboard sign reading "out of 
service" in its place.  One taxi driver told a Consulate contact 
that some colleagues were requiring passengers to lie on the floor 
of the car "like dogs" to avoid being spotted. 
 
¶4. A dearth of taxis made for a sellers' market.  Two drivers on 
separate occasions claimed to have made the equivalent of several 
days' income in fares during the time of highest demand.  Even with 
demand far exceeding the supply of taxis, we did not hear of or 
experience any cases of price gouging -- drivers simply engaged the 
meter as usual. 
 
¶5. Ordered to work, but fearful of retribution from striking 
drivers, many employees of the Guang Jun Taxi Company reportedly 
drove to Guangzhou's Pazhou district, parked and played cards to 
pass the time, according to a Consulate contact, who described the 
parking lot of one of Guangzhou's semiannual trade fair sites 
partially filled with taxis and drivers -- huddled in numerous 
groups -- playing games. 
 
A New Model? 
------------ 
 
¶6. Local cabbies are acutely aware of government concerns about 
maintaining social stability and the current political will to spend 
money to that end -- instead of relying solely on police crackdowns. 
  One labor researcher said that Chongqing party secretary and 
politburo member Bo Xilai opened the door to peacefully resolving 
the most recent series of taxi strikes by meeting publicly with 
representatives of the drivers.  The researcher added that taxi 
drivers elsewhere had been emboldened to follow the example of their 
Chongqing counterparts, while other local governments had followed 
Bo Xilai's lead. 
 
Comment 
------- 
 
¶7. The Guangzhou strike was well timed; the peaceful resolution of 
similar strikes in other cities put pressure on the Guangzhou 
government to negotiate with the strikers, while the extraction of 
financial concessions was made easier due to official readiness to 
trade money for social stability.  As local treasuries become 
increasingly strapped for cash, the willingness to negotiate in lieu 
of ordering police crackdowns will likely diminish, especially in 
poorer municipalities. 
 
GOLDBERG