Two Shenzhen Labor Campaigns Stopped: NGOs Closed

C O N F I D E N T I A L SECTION 01 OF 03 GUANGZHOU 032364

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C O N F I D E N T I A L

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E.O. 12958: DECL: 12/04/16
TAGS: PHUM ELAB SOCI CH
SUBJECT: Two Shenzhen Labor Campaigns Stopped: NGOs Closed
and Computers Confiscated

REF: A) Guangzhou 29575


1. (U) Classified by Consul General Robert Goldberg.
Reason 1.4 (d).


2. (C) SUMMARY: Shenzhen officials continue to be
concerned about the activities of labor NGOs and recent
government reaction to restrict their political activities
seems to bear this out. On November 9, during
investigations of five Shenzhen-based labor rights NGOs,
local officials removed nine computers (later returning
three) and closed two unregistered NGOs. Then, on November
11, a 10,000 person protest over a social security
embezzlement scandal in Shenzhen was cancelled because
organizers could not get a permit from the Public Security
Bureau. Both cases were also partially inspired and
advised by rights protectionists, particularly the tactics
of lawyer Tang Jingling. END SUMMARY.


3. (SBU) Li Qiang, Executive Director of the New York-
based labor rights group China Labor Watch (CLW),recently
posted an internet article stating that local Shenzhen
officials from the Administration of Industry and Commerce,
All China Federation of Trade Unions, Public Security
Bureau and other government bureaus conducted inspections
of five Shenzhen-based labor rights organizations on
November 9. According to Radio Free Asia (RFA),the
"raids" were part of a large "crackdown" against 12 labor
NGOs in Shenzhen that had initiated a petition movement to
eliminate a "handling fee" for labor arbitration cases. Li
was concerned about the issue because some of the NGO
groups had attended a CLW-sponsored "salon" in October and
other leaders in the movement had previously attended CLW
labor rights training sessions.


4. (C) On November 30, Congenoff met with three labor
rights groups in Shenzhen, including Li Weizhong, CLW's
Pearl River Delta (PRD) representative. Li Weizhong said
that in addition to the arbitration fee, the petitioners
also requested the elimination of the requirement that
migrant workers carry identification documents. Li said
the 12 NGOs involved were: Aicai Labor Dispute Service
Bureau, Shenzhen Migrant Workers Association, Shenzhen
Chunfeng Labor Dispute Service Bureau, Shenzhen Laowei Law
Firm, Shenzhen Compassion House, Shenzhen Migrant Workers
Service Bureau, Xiwang Labor Dispute Service Bureau, Liang
Shuonan Labor Dispute Service Center, Cangtian Labor
Dispute Service Bureau, Zhangfa Labor Dispute Service
Bureau, Hexie Labor Dispute Service Bureau, and Wanshijie
Labor Dispute Service Bureau. Other activists who also
placed their names on the petition included lawyer Tang
Jingling (reftel) and Zhongshan University professor Ai
Xiaoming, both of whom are known among activists for their
defense of villagers during the Taishi village protests in

2005.

Background: Arbitration Fee Elimination
--------------


5. (SBU) The idea for eliminating the labor dispute
handling fee began in February: local media reported then
that 12 members of the Guangdong Provincial People's
Congress proposed to abolish Guangdong province's law on
"Fees for Labor Dispute Arbitration." According to PRC law,
authorities are allowed to charge fees (such as for
"appraisal" or "travel" expenses); this would amount to one
to three percent of the case's target compensation amount,
or a minimum of RMB 500. Li Qiang wrote that "99.99% of
cases do not require such a fee; nonetheless, the
government collects these charges."


6. (C) In March, CLW's Li Weizhong said that, upon the
advice of rights protectionist activists such as Tang
Jingling, 12 NGOs decided to create a petition campaign -
hoping to collect 10,000 signatures - to eliminate the fee.
Soon after the campaign started, Li Qiang said that two
organizations withdrew because of government pressure. Li
Weizhong said that many of the 12 NGOs had attended a CLW-
sponsored "salon" (a monthly forum for labor NGOs in the
PRD). At the meeting, the NGOs did not directly discuss
the petition campaign, but were persuaded to seek policy
changes. Later in October, the group decided to expand the
campaign to seek 1 million signatures.

NGO Closures and Computer Confiscation

GUANGZHOU 00032364 002 OF 003


--------------


7. (C) Li Weizhong said the Shenzhen government took three
main actions against NGOs involved in the campaign. First,
two NGOs - the Shenzhen Migrant Workers Association
(Shenzhen Wailaigong Xiehui) and the Migrant Worker Mutual
Assistance Association (Laowugong Huzhuhui) - were declared
"illegal organizations" and were ordered to cease
operations because they were working without registration
with the local Civil Affairs Bureau. Zhang Zhiru, who
founded the Shenzhen Migrant Workers Association, believes
the crackdown was "mainly related to the signature
campaign."


8. (C) Second, authorities took nine computers from four
offices; however, three of the computers were later
returned. Li Qiang wrote in an to email to Congenoff that
because of the seizure of computers, the Chinese government
was now more aware of CLW's activities in the PRD. Li
Weizhong, however, denied this, saying that the government
was already aware of the group's activities and that the
investigation will not significantly impact CLW's work.
Third, Li said that Duan Haiyu (Migrant Worker Mutual
Assistance Association) was attacked by three thugs in
October, which Li suspected was related to the crackdown as
well.

Other NGOs seem less concerned
--------------


9. (C) One of the 12 groups mentioned by Li Qiang's
internet statement is the Guangdong Laowei Law Firm
(Guangdong laodong weiquan luguanshi fusuo). Laowei is a
labor rights law firm with seven full-time lawyers who
provide free legal advice to migrant workers (about 1,000
cases a year). Two lawyers from the law firm said that
they supported the petition campaign and that they had
received legal cases from the Shenzhen Migrant Workers
Association. During the recent crackdown, however, they
said they received no government pressure.


10. (C) Two leaders from the group Little Bird (Xiao Xiao
Niao),a migrant workers association with offices in
Beijing and Shenzhen, said they did not consider the recent
investigations to be "too serious." The leaders believed
that the government typically only pressures organizations
operating without Civil Affairs registration or lawyers
without legal licenses. According to the leaders, Little
Bird has a list of about 100 lawyers it uses for legal aid
services, all of whom must have legal licenses. In October,
Little Bird held a conference of lawyers to discuss
possible changes in labor laws. The lawyers agreed that
the most important areas for reform are the 500 RMB
arbitration fee and the lengthy arbitration process itself.

Elsewhere in Shenzhen: Shekou protest cancelled
-------------- ---


11. (SBU) RFA and other labor rights dissident websites
reported that on November 11, more than 10,000 workers from
Shenzhen's Shekou Industrial Zone planned a protest to
raise attention to an embezzlement scandal involving the
workers' social security fund. Protestors eventually had
to cancel the protest, however, because the Public Security
Bureau did not grant them a permit.


12. (SBU) According to worker representatives, the Shekou
Industrial Zone Co., Ltd. established the Shekou Social
Security Insurance Company (SSSIC) 20 years ago to manage
the social security funds of the 50,000 workers. Three
years after its establishment, the Shekou Social Security
Insurance Company and other companies formed the Pingan
Insurance Company, in which SSSIC maintained a 51 percent
share. In 2001, SSSIC's share in Pingan dropped to 14
percent, and by 2002 the company had sold off its remaining
shares. The workers believe that in these transactions, as
much as RMB 10 billion (USD 1.25 billion) was embezzled.


13. (C) CLW's Li Weizhong said that many activists were
aware of the issue, but he did not want to become involved
because he considers the issue "too complicated." Li said
that police have investigated a few leaders of the protest
movement. On November 16, Tang Jingling told Congenoff he
advised protest leaders to create a petition campaign,
stating exactly how much money each person believes they

GUANGZHOU 00032364 003 OF 003


have lost.

Comment
--------------


14. (C) The reasons for the NGO investigations seem both
political and financial. Typically the Chinese government
will allow NGOs to develop as long as they remain parochial
and unorganized. Officials may have considered the
petition campaign a threat, however, because the movement
comprised 12 NGOs protesting for a policy change. Another
concern might have been financial. Local officials,
especially from the Labor and Social Security Bureau, may
have profited either personally or institutionally from the
500 RMB arbitration fee and they did not want to see this
revenue source eliminated. While the investigation does
not seem as serious as the China Labor Watch release
insists (the two NGOs who were shut down were operating
illegally under PRC law),nevertheless, the government used
the investigations to stymie the NGOs' involvement in the
petition campaign and confiscated the computers to gain
information on NGO activities.


15. (C) Lawyer Tang Jingling - who was affiliated with
China Labor Watch from 2004-2005 - seems to consider
petition campaigns one of the most effective means of
achieving political aims. Recently Tang told Congenoff
that he wants to see more petition campaigns started in
China, in order to further the goals of the rights
protection movement (septel). Tang's influence can clearly
be seen in both the arbitration fee and Shekou protest
examples.

GOLDBERG