Chinese Factory Owner Distributes Rs 9 Crore Among 400 Ex-Workers

A Chinese factory owner distributed approximately 8 million yuan (around Rs 9 crore) among its 400 former employees, as a compensation initiative twenty years after the closure of the unit in central China. He extended this compensation not only to those who were laid off but also to those who resigned and the families of deceased employees.

According to the South China Morning Post (SCMP), Guo Chongzhi, 70, received the money from the city’s municipal body after the land was bought and his factory was razed. The factory was closed in 2000 due to financial troubles.

The land acquisition was completed in 2018, and Guo Chongzhi received compensation of nearly Rs 8 crore last year. That’s was when he thought that every former employee, whether retired, resigned, or deceased, deserved a portion.

The reimbursement was divided into two parts: 35 per cent for former employees and 65 per cent for individuals who were still working when the factory was shut down.

However, because the factory had been closed for decades, locating the former employees and their families proved difficult.

“That period was extremely stressful. I almost had insomnia every night, waking up after just an hour of sleep. I lost about three kg in a fortnight,” said Guo Chongzhi as quoted by Chongqing Daily News Group. His tactics for finding the people included placing “missing persons” ads in the town and requesting contact information from the police.

Guo Chongzhi contacted other media sites, which helped him locate 20 people.

The factory owner was able to find and compensate one of his former employees, Wen Zhihong before she passed away from a serious illness, according to the Chinese media outlet.

“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 grateful to director Guo,” Wen Zhihong’s son told SCMP.

Guo Chongzhi has been successful in compensating 371 of his former workers thus far. With 406 names on his list.

The factory owner has appealed to the media for assistance in finding 35 people who are yet to be located.

Guo Chongzhi’s gestures received widespread praise from China’s internet community.