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China: Pay Deal Frees American Boss China: Pay Deal Frees American Boss
(about 2 hours later)
A pay dispute was resolved Thursday at a medical supply factory, ending a labor standoff in which the Chinese workers detained their American boss for nearly a week inside the plant until they reached agreement on a compensation package. The American, Chip Starnes, a co-owner of Specialty Medical Supplies, said he had been forced to give in to what he called unjustified demands while he was held by about 80 workers inside the factory. The workers began blocking all exits from the plant in Huairou district on the outskirts of Beijing on June 21 after seeing equipment being packed for shipment to India and thinking the entire factory was being shut down. Mr. Starnes, above, has said the company had been winding down its plastics division, with plans to move it to India. When he arrived in Beijing last week to lay off the last 30 people, workers in other divisions started demanding severance packages. The deal would also pay those workers, even though the company said they were not being laid off. A pay dispute was resolved Thursday at a medical supply factory, ending a labor standoff in which the Chinese workers detained their American boss for nearly a week inside the plant until they reached agreement on a compensation package.
The American, Chip Starnes, a co-owner of Specialty Medical Supplies, said he had been forced to give in to what he called unjustified demands while he was held by about 80 workers inside the factory. The workers began blocking all exits from the plant in Huairou district on the outskirts of Beijing on June 21 after seeing equipment being packed for shipment to India and thinking the entire factory was being shut down.
Mr. Starnes has said the company had been winding down its plastics division, with plans to move it to India. When he arrived in Beijing last week to lay off the last 30 people, workers in other divisions started demanding severance packages. The deal would also pay those workers, even though the company said they were not being laid off.