Shenzhen Inwinix Workers Strike, Protest Against Zero Compensation for Factory Relocation

Shenzhen-listed company Yingweiteng’s Fuyong base recently saw a collective strike event as around 200 workers protested against the company’s plans to relocate the entire operation to Zhongshan in July without providing any economic compensation. The workers accused the company of “forced job rotation,” where those who refused were assigned to the non-production line in the “Gongming base,” effectively leading to layoffs.

From June 23rd to 24th, nearly two hundred workers gathered in front of Yingweiteng Electric Co., Ltd.’s Fuyong base in Shenzhen, rejecting the management’s insistence on relocating them to work in Zhongshan. Footage from the scene showed striking workers engaged in disputes with security guards.

According to the workers participating in the strike, Yingweiteng Electric informed employees days ago that the Fuyong production line would be shut down in July and moved to Zhongshan, to be taken over by its subsidiary Zhongshan Yingweiteng Electric Technology Co., Ltd. However, the notice required employees to “unconditionally accept job rotations” without offering any compensation or transportation subsidies for the relocation.

A young man named Xiao Tian, who participated in the strike, told reporters, “We didn’t sign any job rotation agreement with the company, they just sent you to work in Zhongshan. We live nearby, and our leases aren’t up yet. If we move to Zhongshan, there will be significant economic losses. Some families are in Fuyong and don’t want to go to Zhongshan. Isn’t this intentionally forcing us to resign?”

Workers expressed concerns that commuting daily between Fuyong and Zhongshan would take over three hours, resulting in increased living costs and the possibility of de facto pay cuts or even dismissals.

Videos circulating online and statements from striking workers indicated that on the morning of June 23rd, a large group of workers stopped working and gathered at the entrance of the Fuyong factory, hung banners, and blocked the entryway to express their grievances. Some circled around the factory demanding that the company clarify the relocation arrangements and provide fair compensation.

However, the company’s “attendance notice” issued that day stated, “There were a total of 192 employees who left their posts in the morning and did not return according to the notice in the afternoon on June 23rd, all treated as one day of unauthorized absence.” The notice also warned, “Continuous absence for two days or more will be considered a serious disciplinary violation, and the company has the right to unilaterally terminate the labor contract without the need for economic compensation.”

This handling of the situation further angered the workers, with another worker named Xiao Zhao saying, “We are collectively striking to fight for our rights, not absenting ourselves without permission! Besides, the Constitution grants citizens the right to strike.”

According to Mr. Wang, a former volunteer from the Shenzhen Qianchunfeng Labor Dispute Service Team, similar situations are common in Guangdong. Foreign companies adhere to labor contract laws by compensating workers or signing contracts when relocating, while domestic companies frequently violate regulations. He mentioned, “Companies cannot forcibly transfer employees across cities. If employees refuse the job rotation, the company should provide compensation. If workers are marked as absent or dismissed for protesting, they can seek arbitration or legal action to protect their rights. We have dealt with countless disputes like this, ninety-nine percent involving domestic companies.”

Attempts to reach Yingweiteng by phone were unsuccessful. As of writing, Yingweiteng had not released a formal statement regarding the strike. Efforts to contact their human resources and investor hotlines listed on their official website went unanswered.

Public records show that Yingweiteng Electric was established in 2002 and went public in Shenzhen in 2010 (Stock code: 002334), focusing on inverters, new energy electronic controls, and energy storage systems. In recent years, amid the “dual carbon” policy push, the company has accelerated expansion and optimized capacity layout, gradually transferring some production to lower-cost areas like Zhongshan. The Zhongshan subsidiary has a registered capital of 200 million yuan and has begun recruitment, seen as a precursor to Yingweiteng’s formal relocation.

Workers currently demand the company provide positive responses to the following issues: clarification on whether it is a complete relocation, negotiation on job changes, fair relocation compensation, and restoration of attendance records.

Analysts believe that if the company persists in categorizing the strike as “absence,” it could lead to a mass dismissal of employees and spark more intense labor disputes.

Mr. Wang stated that with the ongoing relocation of the manufacturing sector and frequent cost transfers in small and medium enterprises in China, worker rights should not be sacrificed.