Factory owner in China distributed Rs 8.4 crore among 406 workers 20 years after shutting shop

The compensation was divided into two parts, 35 percent for previous employees and 65 percent for those still working immediately before the factory shutdown. (Representational image: Unsplash)

A factory owner in China has shared a payout of nearly 8 million yuan (about Rs 8 crore) with more than 400 former employees 20 years after the unit in central China was shut down. Guo Chongzhi, 70, received the money from the city’s municipal body after the land was acquired and his factory demolished, South China Morning Post (SCMP) reported.

Although the factory was shut down in 2000 due to poor economic situation, the land acquisition worked out in 2018 and it was only last year that Guo received Rs 8 crore in compensation. That's when he decided that that every former employee, whether retired, resigned or dead, deserved a share.

The compensation was divided into two parts, 35 percent for previous employees and 65 percent for those still working immediately before the factory shutdown. But, locating the former employees and their families was a daunting task since the factory had shut down decades ago.

“That period was extremely stressful,” Guo told Chongqing Daily News Group. “I almost had insomnia every night, waking up after just an hour of sleep. I lost about three kg in a fortnight.”

His strategies to track down the people included posting “missing persons” notices in the community and asking the police for contact information. Guo had also reached out to multiple media outlets, which successfully helped him find about 20 people.

According to SCMP, he was able to track down and pay one employee who had resigned just before she died of a terminal illness.

“My mother had cancer and could no longer speak. My father brought the cash to her hospital bed to ease her mind. She passed away a few days after seeing the compensation. Our family is really grateful to director Guo,” her son said.

So far, Guo has been able to pay up 371 of his former employees. His list has 406 names. The remaining 35 individuals are yet to be located and Guo has turned to the media for help.

“Everything is in place for these employees – we’re just waiting for them to come forward, sign, and receive their money,” he said.