【2011.04.22 路透社】Q+A-What is behind the Shanghai truckers strike?

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(Reuters) - A strike by Shanghai truckers over rising fuel prices continued into a third day on Friday, threatening operations at one of the world's largest ports.

Here are some questions and answers about the dispute:

WHY ARE THE TRUCK DRIVERS STRIKING?

The drivers have complained about high operating costs, citing fuel-price increases, low salaries, and irregular fees and fines imposed by authorities.

Some said transport companies were passing on higher costs to drivers and that logistics companies were colluding to charge higher fees.

China said in early April it would increase retail gasoline and diesel prices by 5-5.5 percent to record highs.[ID:nSGE736009]

China's inflation rate rose to 5.4 percent in March, prompting officials to renew vows to use all available means to contain price rises.

China was hit by a wave of strikes in the first half of 2010, most of which ended with substantial wage increases for workers.

HOW IS THE STRIKE AFFECTING EXPORTS AND PORT OPERATIONS?

The stoppage appears to be slowing some exports from the port, which handle mostly container traffic that generally carries textiles, machinery and manufactured goods. Some outbound ships have been forced to leave port with loads under capacity, according to a manager at a logistics company.

Inbound ships have continued to unload cargo normally, though some buyers might pay higher storage fees if containers cannot leave the port facilities on trucks.

Duncan Innes-Ker, China analyst at the Economist Intelligence Unit, said the impact on foreign investors should be limited because the strikes are coinciding with a low season for exporters.

"If it had happened three months later, then I think people would be a lot more worried because the smallest disruption at that time could have ripple effects throughout the supply chain," he said.

Copper imports also have been affected, but not severely. The Shanghai Port handles the largest amount of refined copper imports in China and much of the shipments land at the Waigaojiao terminal.

Analysts said the supplies of copper and other metals are likely to outlast any disruptions caused by the strike.

WHAT HAS BEEN THE GOVERNMENT'S RESPONSE?

China's officials and state media have been silent on the protest, underscoring the sensitivity of unrest for the ruling Communist Party, which normally stamps out anything it perceives as a threat to stability.

The Communist Party is acutely aware of the potential inflation has to cause labour unrest around the country. Analysts say the government may grant one or two concessions to the truckers, reducing toll fees or putting pressure on logistics companies to reduce fees.

Inflation was one of the causes for the 1989 pro-democracy protests centred around Tiananmen Square that were bloodily suppressed by government troops.

In recent months, China has been battling inflation, one of the core concerns of workers who feel wages are not keeping pace with prices. The central bank has reached for a variety of monetary tools to contain price rises, including raising interest rates and banks' required reserve ratios.

But price pressures driven by soaring global commodity prices and abundant liquidity continue to plague the Chinese economy.

COULD THE UNREST SPREAD?

The chances of widespread protests are slim, but Chinese policy-makers are always jumpy about even remote risks of protests that could challenge the government.

Liu Kaiming, executive director of the Institute of Contemporary Observation, a privately funded group in Shenzhen that focuses on labour issues, said the strikes could spread to taxi drivers, noting that the last time taxi drivers went on strike was due to high oil prices.

"The recent fuel price hikes might have been the straw that broke the camel's back," Liu said.

Independent unions are illegal in China and some experts say truck drivers and other workers do not have a channel to fight for their interests on fuel-price increases, low salaries, or irregular fees and fines imposed by authorities.

On Thursday, the Shanghai Municipal Transport and Port Authority said it would cut tolls and contract fees for taxi drivers starting May 1, a move that may have been intended to prevent strikes from spreading to cabbies.

The announcement on the agency's website (www.jt.sh.cn) said it would save 350 yuan a month for each taxi driver. (Reporting by Jason Subler, Jane Lee, Carlos Barria in Shanghai; Sui-Lee Wee, Niu Shuping in Beijing; and Tan Ee Lyn in Hong Kong; Writing by Michael Martina; Editing by Ken Wills and Alex Richardson)

http://www.reuters.com/article/2011/04/22/china-strike-idUSL3E7FM07L20110422

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