With the continuous downturn of the Chinese economy, incidents of wage arrears and labor disputes have been rampant across the country. Not only are private business owners failing to pay wages, even listed companies are unable to issue salaries, and even highly profitable enterprises are now facing operational difficulties.
Recently, Yunnan Jingjian Rail Transit Investment Construction Co., Ltd. emerged with the case of owing over 2 billion yuan in salaries and pension insurance to more than two thousand employees. This state-owned holding company has suspended the payment of pension insurance, housing provident fund, and corporate annuity since March 2023, with a total of 208.4986 million yuan in labor costs in arrears. In the months of July and August this year, they further owed employees 27.5802 million yuan in wages.
Qingfeng First Hospital in Henan Province is a second-tier comprehensive hospital that has not paid basic medical staff salaries from the beginning of this year until August. On August 30, doctors and nurses in work uniforms gathered on the internal road of the hospital, staging a collective strike. In response, the hospital issued a notice stating that they understand the difficulties faced by employees and, despite insufficient funds to pay a month’s performance bonus, they managed to allocate some funds to distribute 1,000 yuan to each staff member (including leaders) to address their urgent needs. The notice also mentioned that the hospital is currently raising funds to pay January 2024 salaries according to the new performance calculation method. All outstanding employee benefits and entrusted loans will be resolved gradually.
Shanghai Neijin Printing and Packaging Co., Ltd. recently faced a situation where the owner fled, leaving nearly 200 employees without six months’ worth of wages. An employee of the company, named Xu Bin, shared with reporters, “Among the staff in the factory, including regular workers, summer workers, and temporary workers, there are nearly 200 people working 14 hours a day without rest for a month. This summer was very hot, with temperatures in July and August making it hard to breathe. The money we earned was hard-earned, and yet the boss ran away. We reported to the police, but they couldn’t find him. Now, ninety percent of the factory’s machines are mortgaged to the bank.”
“We were waiting for this money to pay rent, credit card debts, and to support our children. We have been working here for many years, solely trusting the boss, which is why the delay in wages was unexpected and disheartening,” Xu Bin added.
Twenty-six-year-old Liu Qiang (pseudonym) from Zhangjiakou, Hebei, started working at Beijing Power Source Technology Co., Ltd. in September last year. He revealed that despite being in a technical position with a three-year contract and a monthly salary of nearly 6,000 yuan paid on the 15th of each month, he has not received his wages since the beginning of this year. Some veteran employees have not been paid since last year. Liu Qiang mentioned, “The company is intentionally withholding wages. They claim poor performance, promise payment next month, and then postpone it month after month. We called the mayor’s hotline, reported to the arbitration tribunal, but it was futile. Due to the wage arrears, life is extremely tight, barely enough to make ends meet.”
Beijing Power Source Technology Co., Ltd. is a high-tech listed company specializing in the research and development, manufacturing, sales, and services of power electronics technology and related products, with headquarters in Fengtai Park, Zhongguancun Science and Technology Park, Beijing, employing over 1,500 people. When contacted by the reporter of Dajiyuan, a company staff member admitted to wage arrears but refused to disclose specific details.
Urban residents facing these challenges are difficult, but the situation for migrant workers is even more dire. A migrant worker named Song Cheng (pseudonym) from Yudu County, Ganzhou City, Jiangxi Province, shared that after his divorce, he lives with his 15-year-old son and parents and has been owed wages twice, totaling tens of thousands of yuan. Currently, he is balancing between seeking medical care and doing odd jobs, all while trying to claim his salary, but the contractor refuses to pay.
The issue of wage arrears also reflects the helplessness of business owners. On September 8, a contractor named Bu disclosed on X platform in Hangzhou, Zhejiang Province, that after subcontracting projects to Evergrande, he had to provide upfront funds, as Evergrande would not make advance payments. After several projects, Evergrande owed him over 30 million yuan. When he sued Evergrande in court, they claimed they could not manage or enforce it. However, when he faced lawsuits from his workers, he was immediately taken into custody by the court.
Since accumulating debts three years ago, his wife left, leaving behind their 16-year-old son who is being solely supported by his parents. Bu himself lives a nomadic life, experiencing uncertainty and financial struggles.