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About 70 taxi companies have promised to subsidize each of their cabs 1,800 yuan (US$217) per month from May to September to help struggling drivers shake off the losses being incurred because of fears over SARS.
Shenzhen's transportation bureau confirmed about 1,000 taxi drivers were off the road on Tuesday, parking their vehicles around the city's Huanggang village, asking for government compensation because of their low occupancy rates.
That night, the municipal government held an emergency meeting to try and work out measures to resolve the walkout.
The city government committed to further decrease administrative charges on taxi operations.
Directors from 72 taxi companies, who were also involved in the meeting, volunteered to share the financial burden by offering the monthly subsidies.
Immediately after the meeting, the directors went to the walkout site and announced the decision.
Given existing government rules, which partly exempt drivers from income and business tax, and the taxi company's pledges, some drivers can expect subsidies of over 2,000 yuan (US$240) per month.
The transportation bureau sent teams of inspectors to all of the taxi companies in the city yesterday to ensure every driver benefits from the aid.
Taxi companies will be punished if they do not assist their employees.
Most taxi drivers were back on the road yesterday, according to Li Chuan, an official from the bureau's general office.
The vice-director of the Shenzhen Pengcheng Taxi Co, who refused to give his name, said none of the drivers from his company had stopped working due to the subsidies already offered by the company, which started earlier this year.
"In times of difficulties, the company and its employees should work together to overcome any problems," he said.
(China Daily May 22, 2003)
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