CHINA / National
30 firms blacklisted for defaulting wages
By Liang Qiwen (China Daily)
Updated: 2006-06-26 05:58
GUANGZHOU: Thirty enterprises in South China's Guangdong Province have
been blacklisted by the local government for acute defaulting of
employees' wages.
The thirty enterprises, most of which are private, have defaulted a total
of more than 20 million yuan (US$2.5 million), affecting more than 8,000
workers.
The blacklist includes five Hong Kong-invested, one Taiwan-invested, and
three foreign-invested companies.
"To deter employers from defaulting wages, last year we began to expose
companies with bad records once or twice a year," Zhang Xiang, director
of the publicity office of Guangdong Provincial Labour and Social
Security Department, told China Daily on Friday.
"The actual number of companies that are defaulting on wages is very
large. We blacklisted these 30 companies because they refused to mend
their ways after repeated education, warnings or even heavy punishments."
The campaign to expose cheating companies began in September last year.
Zhang said the policy has sent a warning to employers.
One company on the blacklist, Guangzhou Baoying Shoes Factory, hit the
headlines last year after it defaulted on wages of 586 staff valued at
more than 2 million yuan (US$253,000).
The workers protested against the factory and there were fierce fights
with security staff. Eventually they went to court, with the company
arguing that it was bankrupt after the finance director absconded with
all the money.
The court auctioned the factory for 1.2 million yuan (US$150,000) to pay
some of the salaries.
Statistics from Guangzhou Bureau of Labour and Social Security show that
between 2002 and 2005 the bureau demanded more than 300 million yuan
(US$37.5 million) from employers to pay more than 300,000 workers in the
city.
Since the government cannot help every worker because of limited
resources, experts suggest setting up a legal system and requiring every
company to leave a certain deposit before it starts business.
If the company defaults wages, the court or the government can take some
money from the deposit to pay workers.
The system has been introduced in some cities including Shenzhen, said
Chen Guilan, an official of Baiyun District Court in Guangzhou.
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