Taiwan telecom staff fight sell-off

Staff at Chunghwa Telecom oppose the stake sale

At least 2,000 workers at Taiwan's Chunghwa Telecom have staged a strike in protest at government plans to privatise the company.

Fearing job losses, demonstrators waved placards reading "Rescue national assets" outside the parliament building, as Prime Minister Yu Shyi-kun delivered a policy report to lawmakers.

At least six unions at Taiwanese state enterprises are planning protests in the run-up to the March 2004 general election.

The unions hope to pressurise President Chen Shui-bian into dropping a programme of privatisations.

Taiwanese state monopolies were once profitable but in recent years they have been undercut by local and foreign competitors as markets have been liberalised.

Sell-off planned

The privatisation programme is intended to restore competitiveness.

The strike on Tuesday is the second major protest by state workers in Taipei in less than two weeks.

The new boss will make us leave. I have never worked for other companies besides Chunghwa Telecom Peng Cheng-yi, Chunghwa Telecom employee

"Once the company is in the hands of private groups, we have no protection at all," said 52-year-old maintenance worker Peng Cheng-yi at Chunghwa Telecom.

"The new boss will make us leave. I have never worked for other companies besides Chunghwa Telecom, what am I supposed to do?"

Completing a $1.58bn share issue in New York in July, as part of a three-year privatisation plan, the government proposes to cut its stake in Chunghwa Telecom to less than 50% by the end of the year.

If the sell-off takes place many of the company's 29,000 ageing employees would be laid off.

Unemployment in Taiwan hit a nine-month high of 5.2% in August.

"We can't stop the development of the country and we can't turn back on reforms," Prime Minister Yu told parliament.

In the late 1980s, Taiwan intended to privatise 47 state firms by 2001 but progress has been slow because of legal wrangling and a weak economy.

Only 21 of the firms have been privatised and seven have been shut down.