Hundreds of workers at Shanghai Guoli Automotive Leather Decoration Co, a state-owned automotive trim company, staged a protest by blocking a major highway in Shanghai on Wednesday. The demonstration was sparked by plans for widespread layoffs, leading to confrontations with police.

According to a report by Radio Free Asia (RFA), traffic came to a halt on the Husong Highway as workers voiced their anger over the company's proposed severance package. Videos of the incident, shared on social media, showed at least one worker being detained by police. This led to heated altercations, with workers shouting and confronting law enforcement.

The unrest followed an October 9 notice offering a severance of three months' minimum wage, 8,070 yuan (approximately USD 1,113)—to employees who voluntarily resigned. Workers alleged that these so-called "voluntary resignations" were coerced and criticised the company for describing the offer as “generous.” Citizen journalist "Mr. Li is not your teacher" on X noted the workers’ grievances.

Employees argued they deserved severance based on their average wages over the past 12 months, not the minimum wage.

The protest at Shanghai Guoli is part of a broader trend of rising labour disputes in China amid a faltering post-lockdown economy. Freedom House, a Washington DC-based organisation, reported a 27% increase in dissent events between July and September 2024. The China Dissent Monitor noted a surge in protests by workers, consumers, and investors, with nearly 40% demanding government intervention despite many conflicts originating with private companies.

An official from Qibao township’s complaints division confirmed that tensions between the Shanghai plant’s workers and management began in October. While local police stated they would not mediate the labour dispute, they intervened to prevent disruptions to traffic. Song Baowei, the head of the factory's branch of the Shanghai Federation of Trade Unions, said the union is investigating the cause of the protest.

Workers frequently cited long hours, low pay, and limited avenues to protect their rights as key grievances. Labour activists have pointed to the lack of a robust culture of contractual responsibility and a reliable system for resolving disputes in corporate China.

The Hong Kong-based China Labour Bulletin reported hundreds of protests across China in recent months, primarily driven by unpaid wages. This week alone, construction workers in Wuhan and apparel factory workers in Hangzhou protested for overdue payments. Similarly, on November 16, delivery workers in Guangdong demonstrated against unpaid wages, as shown in videos on Douyin.

The Bulletin’s Strike Map recorded 719 collective actions in the first half of 2024, with more than 800 disputes logged in the past month. Many protests in the automotive sector have been linked to reduced working hours and attempts by factories to avoid paying economic compensation.

“To evade compensation, some companies shut down operations without officially closing the factory and pressured workers into resigning voluntarily,” stated the Bulletin in a September report. This strategy has further fuelled worker dissatisfaction and heightened tensions in the automotive industry. As China’s economic struggles persist, labour unrest is likely to remain a pressing challenge for both corporations and authorities.