The Shanghai Municipal Labor Security Supervision Department has carried out an investigation of 48 enterprises that had been reported to offer salaries that are below the minimum wage. The result shows that 15 of them have violated certain Shanghai's wage rules.

After the investigation, supervisors found that an unnamed clothing company in Nanshan District adopted a piece rate system which gave no difference between basic pay and overtime pay. The real income of employees there has therefore been far below the minimum wage standard in Shanghai.

Some other companies have listed new employees as trainees, which allows them to post their work and output under their supervisors. This causes the new employees to earn much lower salaries. The Department points out that the trainees are entitled to enjoy the same salary standard as others.

The Department says it has first asked all the enterprises to fix their problems, and those who refuse to change will compensate their workers at a rate which of 50% higher than their normal salary.

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