China aims to cut coal output by as much as 500 million tons in the next three to five years, the State Council said at the start of 2016. Meanwhile, China also plans to consolidate its remaining coal industry, meaning that fewer miners will be employed.
Due to the cuts, 1.3 million employees have to be relocated. The central government has earmarked 100 billion yuan to support those relocation efforts.
In spite of the government’s financial support, many coal miners have to give much thoughts about a relocation plan. An anonymous employee said that it forces young people to start over again, even if it isn’t so difficult to find a new job in another industry. As for employees who have already spent many years in the coal industry, they are less competitive in the job market as they have developed no other specialized skills.
In response to the current situation, China's Ministry of Human Resources and Social Security released new guidelines for the relocation of redundant employees in China’s coal and steel industries.
Local authorities and organizations are encouraged to provide the laid-off workers with free training and career guidance, and they should give workers training subsidies, the guidelines stated.
Authorities have also been asked to enhance trans-regional cooperation in order to help workers relocate to regions with better employment opportunities.
In addition, public welfare job opportunities will be offered to older people for whom it is more difficult to find new jobs, as well as to families suddenly lacking a primary breadwinner.
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