Shoe Factory Shut Down Auction Equipment Pay 3 Million Arrears

"We only received half of the wages in June, and the factory has already owed two months' wages". On the afternoon of 18, the Huahong shoe factory, located in Houjie town of Houjie Town, announced that it was closed down. More than 500 shoe factory workers gathered at the gate of the shoe factory to collect salaries.

The local labor supervision department said that the programme of paying workers' living expenses has been launched in real time, so as to ensure the basic life of employees.

Two shareholders are in conflict. How can they make workers who earn so much money?

Nandu news reporter Yu Yuanfeng, "we only paid half of the wages in June, and the factory has already owed two months' wages". On the afternoon of 18, the Huahong shoe factory, located in Houjie Town, was declared closed, and more than 500 shoe factory workers gathered at the gate of the shoe factory to collect salaries.

The local labor supervision department said that the programme of paying workers' living expenses has been launched in real time, so as to ensure the basic life of employees.

The auction of shoes factory machinery and equipment to raise money to pay wages for workers is also in progress. It takes time for workers to understand.

18 pm at 6 o'clock, reporters rushed to Huahong shoe factory, a dialing workers gathered in the factory space.

A worker told him that the shoe factory was closed at 3 o'clock p.m. that night, the shoe factory cafeteria had stopped providing dinner, and the tap water had also stopped.

There are more than 10 shoe factory materials suppliers. They claim to have been in arrears with shoe factories for nearly two years, ranging from more than ten thousand yuan to hundreds of thousands of yuan.

Guo Xiaoping, the legal representative of Huahong shoe factory, said that the factory paid the monthly salary on the 30 day of the month, and announced that it was closed as of the factory. In June, the wages of the workers were 1 million 800 thousand yuan, the actual payment was 1 million yuan, and the arrears were 800 thousand yuan. In August, it was only half a month, plus July when the wages were paid, the total arrears of wages were about 3000000 yuan.

The reporter realized that the debt dispute between the two shareholders was the biggest reason for the closure of the factory.

Huahong shoe factory legal representative Guo Xiaoping said, shoe factory management has "out of the state", he to another shareholder Wang Ailan borrowed a house to make mortgage loans, in July 2012, Wang Ailan made this house as a principal stake in shoes factory, gradually management and financial power in hand.

Subsequently, suppliers continued to inform Wang Ailan of their arrears.

Since August, he has repeatedly asked Wang Ailan to pay the wages of the workers who have been defaulted, and the suppliers are unwilling to supply the shoe factories with credit.

Wang Ailan, the reporter contacted the shareholders of the telephone, the other side said that Guo Xiaoping did borrow a house property certificate from her to make mortgage loans to the bank. "No money has been paid back to me, and the repayment made more than two months ago has been delayed until now."

The cost of living is provided by the owner of the plant.

On the morning of 19, Wang Deming, director of the supervision office of Houjie sub Bureau of Dongguan Human Resources Bureau, confirmed that the total wages owed by Huahong shoe factory were indeed about 3000000 yuan.

Wang Deming said that Dongguan is handling similar incidents of arrears of wages due to factory failures, and has developed a relatively mature mode of handling.

"18 afternoon, 3 pm, Huahong shoe factory declared to be closed down, and the staff had already entered the shoe factory, and the first time to start the workers' living expenses payment plan.

Living expenses refer to the minimum wage in Dongguan last year (1310 yuan / month). Workers are paid several months' wages in arrears, and they receive a few months' living expenses according to the standard.

If the factory owner is unable to bear or even run, the money will be paid by the owner of the rental plant.

Like Huahong shoe factory, the cost of resettlement is provided by the owner of the plant.

Some workers asked to get all the arrears of wages immediately. Wang Deming said, "if the factory owner can't get the money, the only way is to auction machinery and equipment to raise money, but will it take time to sell the machine and equipment?"

Wang Deming said that the storage and auction of related machinery and equipment had already begun to prepare for raising wages and giving priority to workers' Arrears of wages.