Benz cab drivers win refund from company
By Xie Fang (China Daily)
Updated: 2006-01-16 05:29

Seven drivers who absconded with their company's Mercedes Benz taxis in a labour dispute have received 75,000 yuan (US$9,400) of their deposits back from the Hangzhou-based transport firm.

The drivers last Monday drove the leased Benz taxis to their hometown in Central China's Henan Province, more than 1,000 kilometres from Hangzhou, and turned themselves and the cars over to local police, seeking help from their local government to sort out the labour dispute.

Nine staff of Hangzhou Dazhong Transport Company were instantly sent to negotiate with them. After two-day talks, they agreed to stop the seven-year contracts and refund drivers 75,000 yuan (US$9,300) from their original deposits of 80,000 yuan (US$9,900). The cars were taken back to Hangzhou on Friday morning.

The drivers had negotiated with the company on at least seven occasions before they decided to take the drastic step of driving off with the cars.

As all of them had lost money due to high rents and running costs, they wanted to suspend the contract and have 87.5 per cent, or 70,000 yuan (US$8,700), of their deposits refunded. However, the company refused their requests.

Driver Wang Xiaoyong, a fellow villager, said refusal of lower rents was another cause of the incident.

"Many transport companies have decided to reduce rents because of the increase of petrol prices. For instance, the monthly rental fee for my Passat cab is 500 yuan (US$62) less than before. However, the company was reluctant to offer the same discount to the Benz drivers."

The rental fee for a Benz is normally 11,000 per month, not including spending on petrol, while the fee for an ordinary car is about 7,000.

The company could not be reached for comment.

(China Daily 01/16/2006 page2)