Long­may to cut 100,000 coal jobs

China Daily (Canada) - - NEWS CAPSULE -

The largest coal min­ing group in North­east China is cut­ting 100,000 jobs within the next three months to re­duce its losses — one of the big­gest mass lay­offs in re­cent years.

Hei­longjiang Long­may Min­ing Hold­ing Group Co Ltd, which has a 240,000-mem­ber work­force, said a spe­cial cen­ter would be cre­ated to help those los­ing their jobs to ei­ther re­lo­cate or start their own busi­nesses. China’s coal min­ing in­dus­try has been strug­gling with over­ca­pac­ity and fall­ing coal prices since 2012.

Ex­perts said staff costs re­main a ma­jor rea­son for the com­pany’s con­tin­ued heavy losses. Long­may also has 180,000 pen­sion­ers to take care of, with life-long pay­ments cov­er­ing pen­sions and med­i­cal in­sur­ance, which are also con­sid­ered a huge fi­nan­cial bur­den.

“Per­son­nel is prob­a­bly its largest cost,” said Deng Shun, an an­a­lyst at Shang­hai-based energy con­sul­tancy ICIS C1 Energy. “Ac­tu­ally, many tra­di­tional Sta­te­owned coal en­ter­prises are fac­ing the same kind of prob­lem. It has be­come more se­vere as the in­dus­try re­mains on a down­ward trend.”

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