Telecoms giant causes storm by pre-empting labour law
Telecommunications equipment giant Huawei Technologies probably did not expect a massive public backlash when it persuaded thousands of employees to resign and sign new contracts three months before the country's new labour law takes effect.
After all, the Shenzhen-based company had gone through a similar process before to keep employees on their toes and prided itself on its fierce competitiveness.
But times have changed, and the mainland is seeing a growing awareness of labour rights protection. On November 9, Huawei put its controversial plan on hold after rising public anxiety that other companies would try to introduce similar schemes prompted the All-China Federation of Trade Unions to step in.
Huawei planned to offer a bonus to all its long-serving employees to get them to resign. They would be re-employed on the same terms and conditions, but the company would be relieved of obligations to veteran workers when the new Labour Contract Law comes into effect on January 1.
It persuaded 5,100 employees with at least eight years' service to leave their posts by offering redundancy packages of 20,000 to 160,000 yuan and rehiring.