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Workers hold hostages at Chinese factory

XIANYANG, China, Sept. 23 (UPI) -- About 1,000 protestors have trapped 40 officials and workers in a cotton factory in central China, demanding better compensation packages.

The protest, now in its second week, stemmed from the recent acquisition of the state-owned No. 7 cotton works in Xianyang, Shaanxi province, by Hong Kong's China Resources Group, the South China Morning Post reported Thursday.

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The workers are dissatisfied with the introduction of a probationary period, the salary offered, and the compensation for workers to be made redundant after the acquisition.

Workers and their relatives started to assemble at the factory on Tuesday last week. Numbering up to 10,000 at one point, they have effectively shut down the factory.

The trapped workers were provided food and water, and police were at the scene to monitor the group and maintain order, the report said.

A spokeswoman for China Resources said Wednesday that the dispute was settled and the company was not involved. But workers rejected this claim.

No mainland media have covered the protest and local papers were told to stay away, the Hong Kong paper said.

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