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Article

7 Jul 2011

Author:
Gu Yongqiang, Wang Xiaoqing and Ni Weifeng, Caixin [China]

Ugly Highway Crash for Chinese Firm in Poland [China]

...On June 13, Poland's General Directorate for National Roads and Highways (GDDKiA) announced the decision to cancel its...US$ 472 million...construction contract with China Overseas Engineering Group Co. (Covec) [part of China Railway Group]...The Polish government agency also handed Covec a bill...to cover compensation and fines following...the contractor's mishandlings of a project to build 49 kilometers of a 91-kilometer road between Warsaw and Berlin...[T]he public image for Chinese companies in general has been soured by labor strife and subcontractor payment disputes…Labor tensions stewed and eventually led to a strike among workers for Covec's Polish subcontractors beginning May 18. The workers claimed the Chinese company had defaulted on payments, and a group of angry Polish workers forced their way into Covec's office in Warsaw, even setting fires outside the doorway…