On August 11, 2025, in Minhang District, Shanghai, protests erupted once again outside a company in Qibao Town, where workers demanded unpaid wages from the previous year. Dozens of workers gathered outside the factory gates, claiming that the management had repeatedly delayed salary payments and their complaints to the local labor department had gone unanswered.
The protest occurred on August 9 at the entrance of Shanghai Guoli Automobile Leather Accessories Co., Ltd. A video uploaded on social media platform Douyin showed a group of workers demanding fair compensation for those who had been laid off. Security guards in dark uniforms formed a human barrier at the gate, while uniformed police officers stood by the protesters.
In the video, voices of company employees accusing the company were heard, with one saying, “It’s time to leave work, but the company still hasn’t compensated us. Even the police won’t help. The company is really unreasonable.” They questioned Shanghai Guoli Automobile Leather Accessories Co., Ltd.’s actions, stating that it seriously violated the Labor Contract Law.
Attempts to reach the company’s Human Resources department at Guoli Automobile Leather Accessories Co., Ltd. through multiple phone calls were unsuccessful as no one answered.
This marks at least the second protest by workers in front of the company since November last year, but this time the protest did not involve blocking roads like the previous one. Mr. Zhu, one of the factory workers, mentioned in an interview on Sunday that the company, a state-owned enterprise, forced workers to resign last October due to poor economic performance, offering compensation of three months of the minimum wage in Shanghai (2690 yuan per month) to those with more than three years of service without labor disputes, a condition rejected by the workers.
On November 21 last year, hundreds of workers blocked Hushong Road in a rights protection protest, causing traffic disruptions and eventual dispersal by the police, with some workers taken away. Photos from the scene showed workers in work attire holding protest banners, chanting slogans, and occupying the road. The incident, when shared on overseas social media, led to strong criticism of the state-owned enterprise.
At the time, several workers revealed to Radio Free Asia’s Labor Correspondent that the conflict arose from months of delayed salary payments and inadequate compensation offers below legal standards, with the union showing a lack of substantial action in addressing the issues. Workers expressed, “There is no work at the factory, but we must swipe in. If we don’t, it counts as absenteeism. They only pay the basic salary and delay it for two to three months.”
Public records indicate that Shanghai Guoli Company, located in Qibao, was established in 1996 and was a significant supplier of interior components to major auto manufacturers such as SAIC Volkswagen, GM, FAW-Volkswagen, and Mercedes-Benz. The company faced severe losses after 2024 due to a sharp decline in orders, tight fund flows, and failure to settle payments on time, leading to wage arrears and layoffs, as reported by Times Economic.
According to Article 47 of the Chinese Labor Contract Law, the employer should provide adequate economic compensation based on the length of service when laying off employees. However, several interviewed workers mentioned that the company often evaded its compensation obligations through terms like “voluntary resignation” or “mutual agreement termination,” using coercive measures such as refusing to settle wages without signing.
Mr. Wang, a labor rights advocate from Shenzhen, stated that such practices by Shanghai state-owned enterprises were common in the manufacturing sector, making worker rights protection increasingly challenging. In an interview with Epoch Times, he said, “Especially during periods of declining orders, local labor inspection departments inadequately enforce the law, sometimes even siding with companies and obstructing workers’ rights protection. Workers who engage in collective protests are often labeled as ‘troublemakers,’ facing administrative detention or even imprisonment.”
Several workers informed reporters that following the November protests, street office personnel and police spoke with the leading workers, requesting the withdrawal of the protest before negotiations could proceed, but practical compensation measures were not implemented. Subsequently, some workers were forced to accept minimal severance packages, while those remaining inside the factory waited passively for unjust treatment.
Mr. Zhu, a factory worker, emphasized to reporters that the continuous contraction of the mainland Chinese automobile market has led to a sharp decrease in orders, causing difficulties in fund circulation for supporting companies. The collective rights protection on August 9 was the workers’ desperate choice.
He said, “The police are here to maintain order, aiming to protect the company rather than uphold justice. The police claimed it was a labor dispute and told us to resolve it ourselves, stating that their presence was to ensure the company’s normal operation.”
Interview attempts with the Qibao Town government were met with confirmation that the situation was being addressed, although no details on the handling were disclosed.