Longmay to cut 100,000 coal jobs
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.”