Over 1,000 workers laid off at Japanese-funded factory

2015-02-09 20:16:38 

More than 1.000 workers were dismissed Thursday at a factory owned by Japanese watchmaker Citizen Holdings Co., Ltd. in Guangzhou, capital of south China's Guangdong Province.

This announcement came as a shock to the employees, because they had worked in the morning as usual but found themselves dismissed by the afternoon.

"To inform them of this thing in advance may have a bad effect on their emotional status, which would make them fail to work normally," the factory stated in explaining the timing of the layoffs.

One official, from the Guangzhou Huadu Bureau of Human Resources and Social Security, said the factory had already reported about its dissolution and liquidation.

Despite this, the actions may in fact run contrary to Chinese law.

Wang Songjiang, a researcher at the China Institute of Industrial Relations, argues that, according to the Law of China on Employment Contacts, the employer is required to explain the circumstances of the necessary actions to the appropriate trade union  s or to the employees directly, at least 30 days in advance of any reduction in the size of the workforce by 20 persons or more.

Furthermore, decisions on material matters that have a direct bearing on the immediate interests of employees shall be made public or be communicated to the employees by the employer, according to the law.

The factory has pledged to provide the affected employees with economic compensation. The amount of compensation will be decided in correlation with the length of time each worker has spent at the factory.

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