Recently, a strike broke out at BASF’s integrated base in Zhanjiang, Guangdong Province, with hundreds of workers collectively stopping work due to the long-overdue wages owed by the contracting unit. Authorities sent police officers to persuade the workers to resume work, but they were refused by the workers. The company involved is a large state-owned construction company. Members of civil labor rights organizations believe that withholding wages for five months is a serious violation of the law, and workers can seek labor arbitration to safeguard their rights.
In recent days, wage-related incidents among workers have been intensifying across China. According to monitoring project “Yesterday,” in just four days from November 1st to 4th, there were a total of fourteen strikes or collective wage disputes in the manufacturing industry nationwide, spread across Guangdong, Zhejiang, Jiangxi, Hunan, Anhui, Hubei, among other places.
Among these fourteen incidents, one was triggered by “wage deductions,” while the other thirteen were due to “long-term wage arrears,” ranging from two months to a year, reflecting a widespread tension in corporate financial chains and a growing trend of wage defaults.
Mr. Liu, a lawyer from Guangdong, stated to the media that this series of strikes and wage disputes indicates financial difficulties in the manufacturing industry. With decreasing export orders, restricted financing, and exacerbated issues of local governments withholding project payments, the salary risks for the working population are rapidly increasing.
On October 30th and 31st, there was a collective strike at BASF’s integrated base project in Zhanjiang, undertaken by China Chemical Engineering Construction Co., Ltd. Several workers stated through social media on November 7th that the company had not paid their wages for five consecutive months, causing some workers to face financial difficulties and have to stop working to protect their rights.
A worker from Hunan said, “There are also workers who have already quit participating in the strike, rushing back to Zhanjiang from Jiangsu and Henan to claim their wages. We have been trying to negotiate with them to get our five months’ wages back, but they keep saying they are trying to gather funds. It’s been five months, and we are struggling to make ends meet without our pay.” He also mentioned that workers had approached the local government multiple times with no response. Recently, the company only partially released some of the wages, stating that “some subcontractors have already run away.”
Footage uploaded by netizens showed multiple workers in blue work uniforms and yellow safety helmets gathering in the factory area and conference room, loudly chanting for their wages. The video also captured police entering the scene, asking the workers to return to their workstations. Reportedly, disputes occurred between workers and management during this period.
The company involved in the strike is the China Chemical Engineering Construction Co., Ltd., a subsidiary of the China Chemical Engineering Group Co., Ltd., and one of the state-owned construction enterprises in China. The BASF integrated base in Zhanjiang is the largest production complex invested and constructed by BASF in China, with a total investment of approximately 10 billion euros. The project was announced for construction in July 2018, started in 2019, independently built and operated by BASF, with China Chemical Engineering Construction responsible for some core facility constructions.
A welder mentioned that he has two children attending school, and their livelihood depends on borrowing money. “We wait for updates at the site every day, and the management just says ‘there is no funding coming down from above,’ but we even have difficulty putting food on the table.” He stated that the company had promised several times to make the wage payments, but nothing has materialized.
Some netizens commented that wage arrears by the China Chemical Construction Co., Ltd. were not isolated incidents, and excessive subcontracting levels led to delayed settlements. Industry insiders informed the reporters that this event reflects the tight labor capital chains of large-scale engineering projects, with grassroots workers bearing the primary risks.
Regarding the frequent occurrences of wage arrears and strikes nationwide, Mr. Wang from the banned Shenzhen civil organization “Spring Labor Service Focus Group” told reporters that Article 30 of the Labor Contract Law stipulates that the employing unit must pay wages in full and on time, and withholding wages for five months is a severe violation. If subcontracting companies delay payments citing funding settlements, workers can apply for labor arbitration according to the law and report to the local labor and social security department.
He pointed out that in practical operations, workers often sign subcontracting or temporary agreements with ambiguous legal responsibility chains, making wage disputes challenging to resolve. “Large-scale projects like these are often subcontracted from state-owned enterprises to private companies, then subcontracted to labor teams. The actual payers are often not the contract entities, leading to regulatory loopholes.” Wang urged local governments to establish special labor guarantee funds to prevent recurring wage arrears incidents.
As of now, the Zhanjiang municipal government and BASF China have not publicly responded or specified the exact time for wage disbursement. Workers have expressed their intent to continue staying at the site awaiting resolution and are considering filing collective complaints within the bounds of the law.