28 Jun 2013

US factory owner released by workers in China

6:06 am on 28 June 2013

An American businessman has been released after being held hostage for seven days by his own workers at a factory in China.

Chip Starnes was allowed to leave the factory after reaching an agreement with his employees.

Mr Starnes, co-owner of Speciality Medical Supplies, a US company, said the workers had "barricaded" him in after demanding severance pay.

The BBC reports the incident in the factory in Huairou, Beijing, reportedly began on Friday.

Mr Starnes said workers blocked all exits and banged on doors and windows when he tried to sleep.

They had demanded severance packages although not all of them had been laid off, he said.

However, workers said they had not been paid for two months, something which Mr Starnes denied.

On Thursday, union official Chu Lixiang said that the dispute had "been resolved to each side's satisfaction", adding that the deal was not finalised until the early hours of morning.

Police did not intervene, saying the matter was a civil dispute for the two sides to resolve themselves.