500 workers of Chongqing Beer Inc. went on strike on June 17 against the transfer of the company's equity to Carlsberg, the second biggest shareholder of Chongqing Beer.
When journalist of the Financial News visited, about 60 or 70 workers were blocking the gate. Dozens of trucks for beer transportation stopped at the roadside opposite to the gate. There were workers coming from other factories of Chongqing Beer. The workers were restrained and those who proposed to rush into the reception hall, where the management used to confer, were disuaded.
Chongqing Beer published on June 10 that an agreement had been signed between the company and Carlsberg Hong Kong, and 12.25% of the company's equity would be transfered to Carlsberg, the total value was up to 2.38 billion yuan. In the announcement the company alleged that the transfer should be ratified by the Board, Shareholders' Assembly, Employees' Assembly, Chongqing Government, State Capital Commission, Commerce Ministry, etc.
After this transfer, Carlsberg would be the biggest shareholder.
A worker who join the strike said that they were against the transfer of equity as they know nothing about that details, and they were afraid once the company became foreign venture controlled, the worders would encounter various risks.
Another worker wished to know more details to see whether the workers rights were well protected.
The workers had submitted a request to the management through the trade union, in which they are against the merger, and asked for a confered shemed for the arrangement of the workers. The management replied with no other words but a guarantee that what the workers enjoyed would not be changed in three years. Thus the workers decided to go on strike.
One of the workers admitted that even they were against the merger, they could not change the decision as it was made by the government, but they do wish to aquaire a more reasonable fund for the employees.
In 2009, Chongqing Beer had a market share up to 90% in the town of Chongqing. With a monoply of the market, the company received a revenue up to 235 million yuan, and the profit rate reached 10.4%, which is 4 points higher than the average of the industry.