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

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

So far, Guo Chongzhi has been able to pay up 371 of his former employees. The remaining 35 individuals are yet to be located and the 70-year-old has turned to the media for help.

July 22, 2024 / 14:18 IST
Story continues below Advertisement
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)
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.

Story continues below Advertisement

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.”