Nanjing [China], October 14 (ANI): Hundreds of workers at a chemical plant in China's Jiangsu Province demanded compensation after finding themselves locked out of the facility, with police arriving at the scene amid growing tensions, according to a report by The Epoch Times (TET).
Xuzhou Fengcheng Salt Chemical Co., based in Feng County, informed employees on October 9 that production would not resume, leaving an estimated 800 to 900 workers facing transfers or severance payments, TET reported.
A worker identified only by his surname, Gao, told the publication that employees discovered their factory access cards had been deactivated when they returned after a week-long break for China's National Day holiday. He said tensions escalated on October 8 as workers sought clarity over compensation.
According to Gao, company management delayed decisions on severance payments, prompting local officials to intervene. He said county authorities eventually promised that workers would receive legally required compensation.
A video posted on X on October 8 by Chinese human rights monitor Yesterday showed a large gathering of workers and police officers at the facility. TET reported that a man addressing the crowd discussed compensation under Chinese labour law, including a possible two-month transition period for workers to seek new jobs. The proposal reportedly included full wages for the first month and a living allowance for the second. The man's identity and authority to represent the company could not be independently verified.
Gao also told TET that Chinese internet police ordered him to delete a video he had posted of the gathering.
A company notice dated September 28, shared on X by human rights monitor Li Ying, said production would be suspended from October 1 because of market conditions and the company's operating situation.
At a meeting on October 9, the company confirmed that production would not resume and presented a compensation plan. According to Gao, severance would be calculated based on years of service, with payments below 50,000 yuan, approximately USD 7,500, made in one instalment and larger amounts divided into two payments.
The company also offered transfers to affiliated businesses, but Gao said workers opposed relocating. "We don't want to be transferred. We're waiting for compensation," he told TET.
Gao estimated that some employees could receive between USD 9,000 and USD 10,500, depending on their wages and length of service. However, the company had not specified when payments would begin, raising concerns over possible delays.
A 2017 profile by the Feng County Economic Development Zone described Fengcheng as a subsidiary of Wuxi Yiduo Group, with an annual soda ash production capacity of 600,000 metric tonnes.
Gao attributed the company's financial difficulties to overcapacity and falling prices, saying production costs were approximately USD 194 per metric tonne, compared with selling prices slightly above USD 120.
China's National Development and Reform Commission's Price Monitoring Center identified significant nationwide soda ash overcapacity in a June 3 assessment, citing weak demand linked partly to the property-sector downturn. An October 9 industry assessment published on the Ministry of Commerce's commodity-price website said producers continued to face losses and that oversupply was unlikely to ease in the fourth quarter of 2026.
Gao said many affected workers were in their 40s and 50s, making it difficult to find new employment. Workers remain concerned about whether the company has sufficient funds to fulfil its compensation commitments, TET reported. (ANI)
Hundreds of workers demand compensation after China chemical plant shutdown
