China to Lay Off 20,000 Railway Workers: Report

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Last updated at: (Beijing Time) Wednesday, January 02, 2002

China to Lay Off 20,000 Railway Workers: Report

About 20,000 Chinese railway workers may lose their jobs this year as the state railway operator vows to improve the efficiency for future competitions with foreign companies, "China Daily" report on Wednesday.

The Ministry of Railways has announced to continue slashing staff numbers in the year 2002 until the sector, which now employs 1.45 million workers, achieved efficiency.

The staff trimming would help reduce high operation costs and improve efficiency in the railway sector, which in turn would bring better profits, Fu Zhihuan, Minister of Railways, was quoted by "Chiona Daily".

About 100,000 railway workers have already been laid off.

The railway industry made 300 million yuan (36 million U.S. dollars) in profit in 2001 - the second positive year since it moved from the red into the black in 2000, the report said.

The ministry has set a profit goal for 2002 at 500 million yuan (60 million dollars) given the strong development momentum of China's economy.

China, which just became the member of the World Trade Organization, will open its railway cargo business to foreign companies in the 2002-2006 period. Yet local cargo carriers obtained a five-year-long protection period to get themselves in shape for future competition with foreign companies.

The ministry plans to carry out the fifth round of raising average speeds on the railways this year to further connect major domestic cities through a fast and convenient railway network, the report said.

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