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US factory boss held hostage by workers in Beijing

PAULSTANL3Y

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<header style="box-sizing: border-box; border: 0px; font-family: arial, sans-serif; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 10px; vertical-align: baseline; margin: 0px; padding: 0px; display: block; color: rgb(51, 51, 51); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;">US factory boss held hostage by workers in Beijing



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AP Photo: Andy Wong. Beijing workers held their US boss, Chip Starnes, hostage for 4 days demanding severance pay.

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By Louise Watt of Associated Press</section></section>
<section style="box-sizing: border-box; border: 0px; font-family: arial, sans-serif; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 10px; vertical-align: baseline; margin: 0px; padding: 0px; display: block; color: rgb(51, 51, 51); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><section style="box-sizing: border-box; border: 0px; font-family: inherit; font-size: 1.6em; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.4; vertical-align: baseline; margin: 0px; padding: 0px; display: block; position: relative;">BEIJING — An American executive said Monday he has been held hostage for four days at his medical supply plant in Beijing by scores of workers demanding severance packages like those given to 30 co-workers in a phased-out department.

Chip Starnes, 42, a co-owner of Coral Springs, Florida-based Specialty Medical Supplies, said local officials had visited the 10-year-old plant on the capital's outskirts and coerced him into signing agreements Saturday to meet the workers' demands even though he sought to make clear that the remaining 100 workers weren't being laid off.

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AP Photo: Andy Wong. American Chip Starnes, co-owner of a factory in China, looks out from a room where he's being held hostage by his workers.


"I feel like a trapped animal," Starnes told The Associated Press Monday from his first-floor office window, while holding onto the window's bars. "I think it's inhumane what is going on right now. I have been in this area for 10 years and created a lot of jobs and I would never have thought in my wildest imagination something like this would happen."

Workers inside the compound, a pair of two-story buildings behind gates and hedges in the Huairou district of the northeastern Beijing suburbs, repeatedly declined requests for comment, saying they did not want to talk to foreign media.

It is not rare in China for managers to be held by workers demanding back pay or other benefits, often from their Chinese owners, though occasionally also involving foreign bosses.

The labor action reflects growing uneasiness among workers about their jobs amid China's slowing economic growth and the sense that growing labor costs make the country less attractive for some foreign-owned factories. The account about local officials coercing Starnes to meet workers' demands — if true — reflects how officials typically consider stifling unrest to be a priority.

Huairou district and Qiaozi township governments declined to comment.

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AP Photo: Andy Wong. US Embassy employees were at first denied entry to see Chip Starnes whose employees at his factory in China are holding him hostage demanding severance pay.


"As far as I know, there was a labor dispute between the workers and the company management and the dispute is being solved," said spokesman Zhao Lu of the Huairou Public Security Bureau. " I am not sure about the details of the solution, but I can guarantee the personal safety of the manager."

Starnes said the company had gradually been winding down its plastics division, planning to move it to Mumbai, India. He arrived in Beijing last Tuesday to lay off the last 30 people. Some had been working there for up to nine years, so their compensation packages were "pretty nice," he said.

Some of the workers in the other divisions got wind of this, and, coupled with rumors that the whole plant was moving to India, started demanding similar severance packages Friday.

Christian Murck, president of the American Chamber of Commerce in China, said he wasn't familiar with Starnes' case, but that such hostage-taking was "not a major problem" for the foreign business community.

"It happened more often say 15 years ago than today, but it still happens from time to time," he said. "It rarely leads to personal harm to the managers involved, but there are cases when it has in years past."

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AP Photo: Andy Wong. An unidentified US Embassy employee and a Chinese official walk by the gate at Specialty Medical Supplies, where American Chip Starnes, co-owner of the plant, is being held hostage by his own employees.


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Published on Jun 24, 2013
US factory boss held hostage by workers in Beijing


 

Trapped US boss denies Beijing factory owes staff unpaid salary

2013-6-26 0:08:02
By Hu Qingyun

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US businessman Chip Starnes stands behind the bars of his office window after being held hostage for five days over a labor dispute at his Specialty Medical Supplies factory in Huairou district, Beijing on Tuesday. Photo: AFP

The workers who have held their American boss captive for a fifth day on Tuesday in a factory in suburban Beijing said the move was due to fears of being laid off and that the company owes them salary.

Chip Starnes, the 42-year-old hostage and co-owner of Florida-based Specialty Medical Supplies (SMS), said workers had misunderstood, adding that it is wrong information that SMS intends to close the entire factory in China.

"The wrong information got out, saying that we would shut down the entire manufactory and business in China, which is a rumor. We're only going to move the injection molding division to Mumbai, India, but the other division will stay in Beijing," Starnes said Tuesday.

SMS gave those who don't want to switch to the other division severance packages, but some who have already transferred are also claiming it.

However, some workers who have been stationed in the factory since the dispute surfaced disagreed. Some claimed the factory owes them two months salary, an accusation Starnes and two Chinese managers denied, while others said the poor business in recent years has kept their salaries low, fueling their fear of being dismissed.

"We see machines being packed up, even trees from the yard have been sold, all signs that the plant would be shut down. We want the factory to pay our salary back and we can't let this American flee," a worker surnamed Lu, who has been with the factory for seven years, told the Global Times.

Starnes has been trapped in the factory since Friday, though there has been no physical dispute, nor have workers confiscated his passport.

The situation was quite intense in the first two nights. But now everyone is calming down and ready for making progress in negotiation with the help of a local workers' union, he said.

Starnes told the Global Times he is allowed to walk within the factory grounds, accept media interviews and has three meals, including fruit, every day provided by local authorities. Representatives from the US embassy also checked on him on Monday.

 
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