The Shenzhen Municipal Bureau of Labor and Social Security has exposed sixteen enterprises which had defaulted on paying the salaries of their employees.
These enterprises are reported to have defaulted on a total of RMB4.3 million in employee salaries. Neither the Bureau or local media provided a list of the names of these firms.
These enterprises are all labor intensive medium and small-sized companies, covering various sectors like building, clothing, and restaurants. The reasons for them to default on the employees' salaries is said to be either caused by bad management or a strategy to prevent employees from changing jobs.
The Shenzhen labor department launched an action to find these types of enterprises last year. Now, the department is working on a long-term network and information system of correcting these problems in the hope of better supervising the labor market.
