Many Employees Unpaid Salaries... Chinese Bus Company Forced Them to "Take Loans and Cover"

The photo is not related to any specific expression in the article. Photo by Hwang Sumi choko216@asiae.co.kr

[Asia Economy Reporter Hwang Sumi] A Chinese bus company that has not paid its employees for four months has sparked controversy after it was revealed that the company forced employees to take out loans in their own names to resolve financial issues.

According to recent reports from the Chinese state-run Guancha.cn, a notice sent by a bus company in Lanzhou, Gansu Province, was made public on social networking services (SNS).

The notice instructed employees to obtain large loans in their own names. These loans were to be managed through the local Lanzhou Rural Commercial Bank. The company added that it would bear joint liability guarantees with the employees for the full loan amount and would also pay monthly interest settlements.

This measure is interpreted as a solution to the unpaid wages of employees over the past four months. The company, which employs over 8,800 people, is known as one of the largest bus operators in Lanzhou. However, since August last year, it has faced severe financial difficulties due to the spread of COVID-19 and strict zero-COVID policies. According to media reports, the company’s debt reached 3.9 billion yuan (approximately 780 billion KRW) as of September, accounting for about 72% of its liabilities.

Employees strongly opposed the notice and raised public awareness through SNS and other platforms. They claimed that the company forced them to take out large loans in their own names to pay the overdue wages. One employee criticized, "It is absurd to be told to borrow money in each employee’s name to cover salaries when we have not been paid for four months. Who will take responsibility if the company fails to repay these large loans?"

As the controversy grew, the company acknowledged the contents of the notice but explained, "We only introduced the loan service to some of the 8,800 employees and did not force all employees to take out loans," according to the media.

Meanwhile, a company in Sanya, Hainan Province, previously sparked controversy by announcing a policy to transfer half of employees’ salaries to their parents’ accounts ahead of the Mid-Autumn Festival holiday. According to Zhonghua Net on the 8th, the company sent a notice to employees stating that "50% of the September salary will be transferred to parents’ accounts." The notice also included a plan to purchase traditional tea sets worth 1,600 yuan (approximately 318,000 KRW) with employees’ salaries and send them to their respective residences.

This policy was criticized by some who argued that "forcibly deducting incentives from workers’ wages to provide such benefits is inappropriate." One netizen commented, "The company takes money from employees but claims credit for the salary system."