A company boss in China has shared a payout of nearly 8 million yuan (US$1 million) to more than 400 former employees even though his factory had been closed for 20 years. He even paid those who had resigned and the families of others who had died. Guo Chongzhi, 70, from Chongqing in central China, is the former director of the Chongqing General Valve Factory, which was established in 1971 with a workforce exceeding 400 at its peak.
However, the economic situation forced the factory to close in 2000 and the building was demolished in 2018 as part of the city’s municipal land acquisition plan. In March last year, Guo received 7.7 million yuan in compensation for the demolished factory building.
A sum of money that presented significant challenges regarding its distribution. Guo believed that every former employee, whether retired, resigned or dead, deserved a share. After extensive meetings, a decision was made to divide the compensation into two parts, 35 per cent for previous employees and 65 per cent for those still working immediately before the factory shutdown.
The amounts were then further divided based on each person’s time at the factory. “That period was extremely stressful,” Guo reflected. “I almost had insomnia every night, waking up after just an hour of sleep.
I lost about three kg in a fortnight.” Guo told Chongqing Daily News Group. Locating employees who had resigned, retired and died was a daunting task, given the factory had been shut down so lon.