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China factory owner gets US$1 million demolition payout, distributes it among 406 workers

  • Ex-boss closed factory 20 years ago gets compensation, distributes it among former employees – dead or alive

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A boss of a factory in China which closed down years ago has been praised for tracking down hundreds of people who worked there and paying them a share of a US$1-million compensation payout he received. Photo: SCMP composite/Shutterstock/Baidu
Yating Yangin Beijing

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.

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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.

The level of compensation took years to work out and finally came through 20 years after the factory had closed. Photo: Baidu
The level of compensation took years to work out and finally came through 20 years after the factory had closed. Photo: Baidu

Guo believed that every former employee, whether retired, resigned or dead, deserved a share.

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