Linglong case: Continuous violation of labor rights awarded by the state with 75 million euros

Few people in Serbia have not heard about the suffering of workers from Vietnam who lived in inhumane conditions, hungry, without enough hot water and heating, during the covid epidemic. Such people went to the Linglong construction site to work often for more than ten hours, in violation of the contracted financial obligations of the Chinese employer. Their suffering was not enough evidence for the judicial authorities in Serbia to adequately punish the employer for a serious violation of the law. The epilogue is that they all returned to Vietnam alive, many of them with empty pockets and with the impression that they want to forget life and work in Serbia as soon as possible, as the worst nightmare.

The president of the Association Center for Dignified Work Dr. Mario Reljanović believes that there is extensive evidence that Linglong, that is, that subcontractors working for Linglong used foreign workers who are victims of human trafficking. Although Linglong has officially dissociated itself from China Energy Group, it is completely clear to Reljanović from the circumstances that are known that the role of that Chinese company was precisely to act as an intermediary in transactions in which it is obviously necessary for Linglong to remain "clean hands".

 

"Something like that is simply not possible and the construction that was made is very naive. If there was a real criminal investigation, it probably wouldn't be difficult to find the facts that the people in charge at Linglong knew about everything that was going on with the workers working at their construction site. And that actually brings us to my basic perception, as Linglong reasoned - what to us (according to international standards and the Criminal Code of Serbia) is human trafficking, according to them it is a modus operandi with labor brought from Asia, mainly from China but also from other countries . When someone acquires such an initial image, and continuously receives only confirmations that the first impression is correct, then it is difficult to fix it with any kind of marketing," claims Dr. Reljanović for VOICE.

And indeed, this year's scandal also with human trafficking for the purpose of labor exploitation confirms that. The role of Vietnamese workers was only taken over by workers from India (bad working conditions, confiscated passports, denial of wages...) Only the number of victims was smaller. For Tara Rukeci Milivojević from the Zrenjanin Social Forum, everything about Linglong is non-transparent, including the issue of the position of the workers who are engaged in the factory in Zrenjanin. She completely subordinated her field work and knowledge to the fate of Vietnamese and Indian workers and their rescue from Serbia. In both cases, she says she attended unrecorded media games in order to cast a better light on the company.

 

"I remember that, looking at the email in which Linglong's PR claims to journalist Ksenia Pavkov that they do not and have never had workers from India, and we hold in our hands their passes to enter the factory, I said that all the time I felt as if someone, psychologically said, it serves. In a conversation with some people, I heard an unusual argument, which is that it is part of the Chinese culture in business, that all problems are solved without the public and the media, within the company. It is strange how culturally exploitation is normalized, from the fact that 'it is normal for the Vietnamese to live like this' to the fact that exploitation should be solved within the walls, without unions, without the public, without the media, because it is a different culture and philosophy of life", says Tara Rukeci Milivojević for VOICE.

Conveying his experiences, he says that hardly any worker is open to talking about the working conditions at Linglong, and that those who speak on social networks about negative experiences under the company's advertisement looking for workers are often attacked by Linglong's PR. Tara Rukeci Milivojević says that she concludes two things from these attacks on former employees.

 

"The first is that Linglong, like other companies, actively follows its employees and former employees on social networks and that Linglong has been fighting a negative reputation from the very beginning. The reason why everything related to Linglong is noisier - the obvious non-transparency in work, modern slavery as well as a number of environmental issues related to this investment, violation of laws and procedures. The second is an extremely obvious anti-Chinese campaign by political currents that are apologists for the Western world, more precisely, who often see the exploitation of people, resources and the environment only in China's backyard. The fact is that what follows Chinese investments is just a continuation of how all other investments came - painful for workers, painful for life here," she believes.

It seems to Mari Reljanović that Linglong does not want to improve his image, because the media responsible for such a thing are sympathetic to the authorities. As far as the Chinese company is concerned, it also seems to him that they continue to violate the regulations continuously. He believes that Linglong, like some other companies that are marked as important for the interests of people in power, has been gifted with factual extraterritoriality. As an argument for this, he states that the state authorities, despite the abundance of evidence found in the reports of the ASTRA organization, did not want to initiate any proceedings against Linglong, except for some naive misdemeanor proceedings initiated by the labor inspectorate.

Based on what was happening and what we learned most about from the media, the president of the United branch unions "Nezavisnost" Čedanka Andrić says that she got the impression that we are dealing with a company that behaves like a "state within a state". She is particularly concerned about the hostile attitude of the company towards media workers who reported to the public about the unusual problems of the workers.

"Linglong seems to see nothing objectionable in violating workers' rights without any transparency in their work. They even showed arrogance and force when trying to get some information. With their security, which prevents the journalist crews from doing their work and forbids access to the workers, it is an understatement to say that they have acquired a negative image even before they started working in full capacity", assesses Čedanka Andrić for VOICE.

 

The rule of law cannot be sacrificed for the sake of profit

When asked whether the state can allow itself the luxury of not re-examining the way of hiring foreign workers and the affairs related to Linglong, the president of Nezavisnosti answers briefly - it must not. According to her, the fact that no court proceedings have been initiated, even though there was a lot of evidence that was the basis for the initiation of investigations against Linglong, speaks of dysfunctional institutions, above all prosecutions.

"The state must take care of compliance with the Labor Law, period." The work of agencies that are registered abroad and bring foreign workers to Serbia cannot be privileged in such a way that they can do whatever they want. The government is obliged by the Constitution and laws to take care of respect for human and labor rights. The rule of law cannot be sacrificed for the sake of profit. The fact that no court proceedings have been initiated, even though there was a lot of evidence that was the basis for initiation, speaks of dysfunctional institutions, above all the prosecutor's office, which had the basis for a whole series of proceedings ex officio, especially in situations where there was suspicion of human trafficking for the purpose of labor exploitation", is categorical Čedanka Andrić.

Mario Reljanović believes that the state can obviously allow such behavior, which on the other hand has no logic because it protects the perpetrators of serious crimes against foreign citizens who should have guaranteed personal rights during their stay in Serbia. As he says, this sends a message to workers in Serbia that they cannot fight against illegal working conditions.

"There is no logic that should be primary - to protect citizens, to protect the rights of all people who are on the territory of Serbia, and only then to 'protect' the economic, political and other interests of the state (if it can even be called that,

because how can they be the interests of the state that the perpetrators of criminal acts operate unhindered). I think that the authorities consciously decided to renounce sovereignty a long time ago - sometimes it is probably a consequence of the general weakness of the state, sometimes higher political influences. But the consequences are always identical and the message sent is always the same. "Investors are lulled into the illegalities they commit, and workers are told that they cannot fight against illegal working conditions," Reljanović believes.

Tara Rukeci Milivojević believes that there is no place for stories about luxury, nor for ruining the reputation of the state if it covers up and participates in crimes against humanity. According to her, it is clear that the state is the one who has interests in exploiting the workers, skilfully flirting with the exploiters on both sides of the world. He believes it was a premeditated crime, not an accident.

"The same is true of workers from Asia who come to work in Serbia/Croatia/Bosnia and Herzegovina. Although it seemed as if everyone was taken aback by the case of workers from Vietnam and the case of workers from India, it is not unexpected, nor something that companies and states, more precisely, the comprador class that rules the state (agents who carry out work in the field of investment, trade , economic or political operations for foreign organizations). So it is not surprising that there is no court epilogue, that the prosecution is silent, the Victim Protection Center is silent, the inspectorates are silent. Even if these cases get an epilogue in that, institutional sense, it will not be a guarantee that the business of mediating foreign workers for small, medium-sized enterprises and employers from Serbia will not flourish tomorrow - and it is already flourishing. "Linglong is not unique, but it is significantly more problematic due to its size and untouchability," assesses Rukeci Milivojević.

 

Subsidies to foreign companies are a kind of race to the bottom

 

The Linglong project is part of the interstate agreement between Serbia and China. Therefore, almost nothing from that agreement is available to the public. Among other things, it is known that Linglong received subsidies from the state. As stated in the decision of the State Aid Control Commission, which gives the green light for granting the subsidy, Linglong will receive from the Serbian budget 75 million euros in subsidies for the employment of at least 1,200 workers by the end of 2024. VOICE interlocutors believe that in the case of the Linglong company, there is no justification for keeping something secret. Mario Reljanović claims that in any other country, Linglong would be forced to return the subsidies it has received to date due to the affair.

"I would say that there is no basis for the entire contract to be a secret, some parts of the subsidies were discovered by journalists, the question is what the contract contains." But I would also say that this is not a characteristic of behavior only towards Chinese investors and it is not even a characteristic of these authorities. Let's remember FIAT and the contract with Zastava, which was never revealed in its entirety and parts of which were only partially revealed. It is therefore the same methodology of declaring as a state secret what is the business interest of a foreign company, which cannot possibly be classified in that way. When it comes to business secrets, providing state funds for the private interests of a foreign employer also cannot be information that is kept as a business secret - in that sense, we cannot talk about any legality of hiding these contracts," says Reljanović.

He believes that the state's behavior towards Linglong is protectionist beyond any rational measure. He recalls that Linglong first came into the limelight due to its location and violations of environmental regulations, for which it would also be forced to return subsidies and comply with regulations, and sanctions would have to be borne by all those responsible. Instead, Linglong continued to violate the laws of the Republic of Serbia unhindered, as if he was not in it at all, claims Reljanović.

"Even relatively banal examples of violations of the law, such as gender discrimination, which was also recorded in front of the cameras, and which I described in one of the texts, were not further processed by the competent authorities. On the other hand, who knows if we will ever find out how much of our money was given to this company so that it could do what it does, and that is just the sad reality of the servile attitude towards all investors in Serbia, especially towards those who also carry a certain political weight (and background)", says our interlocutor.

Tara Rukeci Milivojević believes that there is no justification for something to be secret, if that interstate agreement contains what pro-Chinese currents consider "a part of wet dreams". He believes that the problem is that no one came to Serbia to develop us, but to exploit us. He also believes that classification into camps according to the principle of EU - NATO or BRICS does not contain anything liberating and progressive.

"Class inequality exists in both camps. It is interesting why China makes agreements with right-wing governments such as Vučić's, because if there was anything liberating, China would not help the survival of the bourgeois autocrat in power with its investments. Basing the economy on direct foreign investments is reduced to subsidizing a company with state money in order to come to a certain country. Every company aims to make a profit. Countries offer cheap labor, free land and more, and it's kind of a race to the bottom. The problem is not from yesterday - companies from Draxlmaier to Yura, where the workers' strike is currently taking place, are problematic," warns Tara Rukeci Milivojević.

Even for Čedanka Andrić, it is unacceptable not to know the exact amount of the subsidies, because the money involved is the money of citizens of Serbia. That is why the Government of Serbia would have to be transparent and say exactly how much money was given and why so much and how it estimates that it will pay off for us. Above all, he believes that this is another example of putting the interests of big capital above everything else.

 

"It cannot be a secret what the budget money is spent on. Well, it's not private money that was given as subsidies, but also various other reliefs that are given by local governments and I believe that they do it by order of the republican government. I also read in the media that Linglong first built a waste storage facility and then requested a construction permit from the city administration, which of course was given to them without an environmental impact study, although the decision of the Provincial Secretariat for Environmental Protection was awaited based on the appeals of two associations. In the end, the decision of the Provincial Secretariat came to cancel this city decision, and now the city is on the move. Let's see what will happen - according to the experience so far, most likely nothing", says Andrić.

 

Ziđin and Linglong have a lot in common

Mario Reljanović warns that even for the Chinese Zijin (Zijin Cooper), although on paper the workers in Bor should have guaranteed rights from the collective agreement, there are terrible examples of violations of workers' rights, such as the one during the covid era when the factory was the focus of the epidemic and the inspection work was prohibited from entering Ziđin's business premises, which was out of the question. That's why he thinks that we don't really know what kind of conditions Chinese workers live and work in Bor.

"Ziđin and Linglong have a lot in common when it comes to the treatment of workers and generally the philosophy of the work process. However, there are also differences. On the one hand, Ziđin has a different strategic plan for public relations, if I may say so. Hence, there is a union in a Chinese factory and a collective agreement, the signing of which was attended by the former minister of labor Nikola Selaković, known for the fact that he practically did not appear in public regarding his position, for the entire duration of his mandate... The Chinese employer in this case wanted to show himself in a good light, which is completely different from the image created by Linglong", says Reljanović.

He adds that there are various examples where Ziđin as an employer slips on the edge of the law, but does not fundamentally violate it. He also notes that they "suffer" from the same ailments as other privileged employers, but that is why wages in Ziđin are incomparable with other Chinese employers in Serbia, which leaves a big mark on the local community, which reacts to the enormous environmental pollution but is still not loud enough to something is done about it. "I would say that Ziđin has taken a much more proactive stance than Linglong and that creates a fundamental difference in the public's impression", assesses Reljanović.

 

Čedanka Andrić believes that the difference is that, when Ziđin arrived in Bor, there was a valid collective agreement and well-organized, representative unions, including Nezavisnost. He adds that where the Chinese start from scratch with new companies, they do everything to prevent the organization and work of unions, as Nezavisnosti has pointed out countless times to the authorities.

 

"Not everything is easy in Ziđin either. We also had protests and very difficult negotiations in which, truth be told, on several occasions the Ministry of Labour, Employment, Veterans and Social Affairs was very constructively involved. In Chinese companies where we do not have a union, we also know that it is very difficult to negotiate and that there are many violations of workers' rights. But it should also be said that there is an increasing trend of violations of labor and trade union rights in a large number of companies, including those that come from countries where social dialogue has been developed, therefore also from the West and not only from the East," notes Andrić.

Without going into the way of union organization of workers in Ziđin, Tara Rukeci Milivojević estimates that the establishment of a union in Linglong will be extremely difficult. He believes that unions in companies are not a reflection of the organization of workers, because almost every larger company has its own union, the so-called žutać, which serves to pretend that the company is open to conflict and its resolution, and that it respects the rights of workers to associate. And we are talking about a union that is actually managed by the management of the company.

"Establishing a union in a company like Linglong will be just as difficult as anywhere else. If the need arises due to the image, I have no doubts whether someone from the management will establish a yellow union in Linglong and pull out that card every time criticism is directed at the company's work. That is why it is necessary to connect individuals who have tried, with more or less success, to found trade unions, to share experience, because often workers lack experience, organizers/leaders and a clear goal to which they are striving", says Rukeci Milivojević.

In this connection, the question arises at the end of what the rights of workers in Linglong will look like when the company starts full production. Mario Reljanović believes that the situation will be exactly the same as today - domestic workers will have very limited rights, often in disagreement with Serbian regulations, while foreign workers will probably be "better protected" from the public eye and their position will not change significantly compared to victims of human trafficking that we have already met.

 

"In order for there to be any change in the employer's relationship, which obviously cannot be considered conscientious and benevolent, the will to sanction all illegal actions must be shown. A rational question arises: why would an employer deviate from a highly profitable model of labor exploitation, if it sees that it is protected from criminal and any other prosecution... But, if the French and German laws on due diligence in supply chains are consistently applied, Linglong by continuing this behavior would could potentially lose two main business partners - Renault and Volkswagen", concluded Reljanović.

Čedanka Andrić expects that violations of workers' rights will continue and that it will be very difficult to organize a union in Linglong. "However, workers must be aware that only those organized in a union can fight for their rights. "Neither will the employer give them rights that they do not fight for, nor will the competent institutions 'break' in protecting workers through law enforcement," Andrić believes.

Tara Rukeci Milivojević draws attention to the fact that the Linglong company has started producing, as the workers claim, poor quality tires for the non-European market. According to her, the start of tire production in this case only means higher profits for the company, but not better conditions for the workers. He thinks that the position of the employees will eventually be even worse than the current one, especially because the trade union resistance would be greatly stifled.

"What was the resistance of the workers from India so that they did not go home damaged?" For those 11 organized workers, we can say that, if they had the right to a union, it would have been a fighting union that would have fought for its rights without any problems. And we know that the struggle of the workers is stifled from physical attacks to threats, blackmail and other things. That is why it was important to act in solidarity with workers from other countries, because a worker from Botoš has the same interest as a worker from Calcutta", concludes Rukeci Milivojević.

 

CONCLUSION

From a text that deals in great detail with the violation of the rights of workers employed by the Chinese company Linglong in Zrenjanin, Serbia, but also with very serious accusations that this company and its subcontractors used foreign workers who are victims of human trafficking. Despite the numerous evidence collected, instead of a court epilogue, the state of Serbia will pay the Chinese company 75 million euros in subsidies by the end of the year, under very suspicious circumstances.
It is known that contracts with Chinese companies in the countries of the Western Balkans, whether they are investments or loans, are most often a secret for the citizens of those countries. However, in this case, the state gives money to the Chinese company for subsidies and all the details of the contract should be presented to the public.
In addition to hiding the subsidy contract, Chinese investors are very reluctant to agree to the formation of unions in their plants, the provisions of the collective agreement are not respected and other workers' rights are violated. The fact that there is no adequate response from the competent judicial institutions in Serbia justifiably provokes reactions from the media and NGOs. And this behavior once again confirms previous publications in which leading analysts highlight lack of transparency and suspicions of corruption as the main determinants of the work of Chinese companies in the Western Balkan countries.