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C O N F I D E N T I A L SECTION 01 OF 02 SHENYANG 000152 
 
SIPDIS 
 
E.O. 12958: DECL: 08/26/2019 
TAGS: CH ECON ELAB PGOV PINS SPILL
SUBJECT: TONGHUA PROTEST FOLLOW-UP: INVESTIGATION GOING 
POORLY 
 
REF: SHENYANG 130 
 
Classified By: Pol/Econ Chief Dannielle R. Andrews for Reasons 1.4 b/d 
 
 ¶1. (C) Summary. Wang Shou Kun, chief economic research 
advisor investigating the Tonghua Steel factory labor 
disturbance that resulted in the death a manager (reftel) 
says the Jilin government is committed to getting to the 
bottom of what happened but that no arrests have been made. 
Rumors of mafia involvement and internal corruption 
investigations are false.  Wang recounted the violent history 
between Tonghua Steel and Jianlong Steel and said that the 
tensions stem from workers' lack of trust in Jianlong and the 
local government.  Wang strongly feels that labor 
negotiations are not the government's strong point and sees 
no hope that this will improve. Since reopening, production 
at the plant is at historic highs. End Summary. 
 
 
A Hard Case to Crack 
-------------------- 
 
¶2. (C) On August 17 Congenoffs and visiting Pol M/C met with 
Jilin Provincial Government Investigation and Research Office 
Senior Economic Advisor Wang Shou Kun, who has been tasked 
with investigating the Tonghua labor dispute police 
investigation and making recommendations for further action. 
Wang said the police investigation into the death of General 
Manager Chen Guojun has not gone well thus far. Although many 
workers were brought in initially for questioning, they have 
all been released and no one in Tonghua Steel has been 
detained. Wang said rumors stating that local gangsters were 
involved in the murder and that Tonghua Steel's Chairman of 
the Board and Deputy General Managers have been detained and 
investigated are false. With the local government wary of 
sparking more unrest, quelling such rumors and paying careful 
attention to workers' statements are very important.  Despite 
these challenges, the Jilin Government is determined to find 
out the truth. "After all, a man lost his life," concluded 
Wang. 
 
 
A History of a Situation Spun Out of Control 
-------------------------------------------- 
 
¶3. (SBU) According to Wang, Mr. Chen's death was not part of 
a planned disturbance, but the result of the wrong person 
being at the wrong place at the wrong time and saying the 
wrong thing. In fact, the incident, as it was, started off 
simply. On the day in question, Mr. Chen had arrived at the 
plant just when a disturbance had occurred. Knowing of Mr. 
Chen's imminent arrival at the Tonghua Steel plant, workers 
had assembled around a side gate of the plant to complain 
about Jianlong's return.  As the crowd grew, two workers put 
up banners condemning Jianlong.  When two plainclothes police 
officers among the crowd tried to remove the banner, the 
crowd became enraged. Workers beat the officers, who escaped 
briefly to run to the main gate that houses the plant's 
police station, hoping to find reinforcement.  At the main 
gate, workers encountered Mr. Chen, who was immediately 
surrounded and questioned by the workers. Chen made no 
attempt to pacify the crowd but instead threatened to fire 
all the workers. It was this blanket threat, said Wang, that 
led to the three beatings that ended Chen's life. Per reftel, 
emergency services were not allowed onto the compound by 
workers until well into the evening, and Chen was later 
pronounced dead by health officials. 
 
 
A History of Violence, A History of Conflict 
-------------------------------------------- 
 
¶4. (C) Wang, a self-proclaimed labor negotiation and disputes 
expert, faults the Jianlong Steel Share Holding Company and 
the Jilin provincial government's mismanagement of the 
merger. To his knowledge, Chen's death is not the first time 
that a member of Jianlong's management in Tonghua Steel has 
been killed by a worker(s).  Wang recalled that on Christmas 
Eve of 2008, the Director of the Steel Rolling Plant found a 
worker drunk on duty.  Instead of referring the worker to 
junior officials for punishment, the director told the worker 
that he was fired.  The inebriated worker, fueled by anger, 
killed the director with a hammer.  During the subsequent 
police investigation, no witness stepped forward; everyone 
present claimed they had not seen anything. 
 
¶5. (C) According to Wang, due to Jianlong's simplistic and 
hard-lined management style, disputes had been become a 
 
SHENYANG 00000152  002 OF 002 
 
 
regular problem at the plant.  At the outset of the merger, 
Jianlong laid off workers and junior Tonghua officials alike. 
 Whoever violated regulations or the interest of Jianlong 
management were immediately fined or fired, heightening 
management/worker conflicts. Wang also stated that workers 
were unhappy with what they perceived as an unfair wage 
structure--their average salary being about RMB 300, while 
managers from Jianlong made tens of thousands of RMB a month. 
 
 
A History of Mistrust 
--------------------- 
 
¶6. (C) Mr. Wang said the Tonghua Steel case is also a 
reflection of the workers' mistrust of the local government. 
As an example, after Chen's death, local government officials 
assured the workers orally that Jianlong was permanently 
excluded from the restructuring of Tonghua Steel. However, 
the workers refused to disperse until they saw the provincial 
government decree in writing.  According to Wang, Jilin 
State-Owned Assets Supervision and Administration Commission 
failed to consider worker interests in the restructuring deal 
and should have done more to address their concerns.  He said 
government officials lack the necessary communication skills, 
training, patience and expertise to carry out such sensitive 
mergers. Wang believes that with increased privatization 
and/or mergers, incidents like Tonghua will continue. 
 
 
Historic Highs: Workers Express Their Love 
------------------------------------------ 
 
¶7. (SBU) Wang says Tonghua Steel is now back to business and 
workers are working harder than ever. Steel production in the 
plant over the past three weeks has been the highest in the 
plant history.  As a matter of fact, workers have refused to 
go home after work, voluntarily staying to help the next 
shift.  According to Wang, this is their gesture to prove 
that they love the steel plant and do not want to create any 
further problems. 
WICKMAN