On September 12th, a proposal from Jiangsu Huanju Construction Engineering Co., Ltd. (referred to as Huanju Construction) circulated online, sparking widespread discussion. The proposal stated that the current economic situation is very severe, with many companies lacking construction projects. While the company had started four new projects this year, which is better than most companies, they are facing a significant debt of over 900 million yuan due to delayed payments from construction units. With banks tightening credit and construction companies finding it extremely difficult to secure loans, the financial pressure is immense.
The proposal urged employees to work together to provide mutual support. Based on voluntary participation, each person would offer a property to the company to help secure a mortgage from banks and address the urgent need for project construction. The proposal also mentioned that colleagues who assist in securing mortgages will receive a reward of 20,000 yuan by the end of the year.
After the proposal was exposed online, it quickly stirred up a heated discussion among netizens. Many expressed concerns and skepticism, questioning the motives behind the company’s request and the potential risks for employees. Some comments highlighted the perceived exploitation of employees and the potential consequences of participating in such a scheme.
Following the online controversy, attempts to contact Huanju Construction via their office phone and multiple recruitment contact methods proved unsuccessful. Subsequently, a reporter reached out to the Labor Security Supervision Brigade in Gaochun District, where the company is headquartered, but they only confirmed the existence of the proposal without providing further details.
On the 13th, an employee named Feng responded to media inquiries, acknowledging the existence of the proposal but clarifying that there was a misunderstanding in its presentation. According to Feng, employees were supposed to use a property provided by the company for mortgage collateral, rather than offering their own properties.
However, another employee responsible for recruitment at Huanju Construction disputed the authenticity of the proposal, stating that it was false and expressing confusion about how it had been leaked. Street office staff at the company’s registered location acknowledged seeing the circulating post online but indicated they were unable to intervene in verifying the situation.
Public records show that Jiangsu Huanju Construction was established in 1996 with a registered capital of 500 million yuan, and it is a construction company with a history of accolades such as being recognized as a top 100 competitive enterprise in Jiangsu Province. Despite its reputable status and involvement in various projects, the company has been entangled in numerous legal disputes and faced multiple execution orders for substantial amounts due to contract disputes and financial issues.
In recent years, amid China’s economic downturn, instances of companies requiring employees to take out loans or make financial contributions have become more common. Several cases of companies implementing similar practices, such as providing loans for employees to cover expenses or participate in company initiatives, have surfaced, raising questions about the ethical implications and employee rights in such arrangements. The recurring trend has prompted discussions and debates on whether employees should bear financial burdens to support their companies during challenging times.