Changzhou Xingyu Automotive Lighting System Co File photo: VCG

Changzhou Xingyu Automotive Lighting System Co, in East China's Jiangsu Province, has issued rectification measures over the improper handling of the newly hired university graduates in early August, with the company's general manager's salary to be suspended for one year, and the human resources department director being removed from his post, the company said on Monday.

According to the company, General Manager Zhou Xiaoping, who bore management responsibility, will have salary docked for 12 months. Deputy General Manager Li Shujun, who held direct leadership responsibility, will no longer oversee human resources and will face a six-month pay cut. Human Resources Director Yu Zhiming was removed from his post, and another senior HR executive was demoted and reassigned to another post. 

As of 12:00 on Monday, 71 of the 107 students had already joined new employers, 22 had received job offers after passing interviews, and the remaining 14 were either in the interview process, in discussions about employment opportunities, or making plans to pursue postgraduate studies, the company noted.

Xingyu focuses on the research and development, design, manufacturing and sales of automobile lamps. Its customers include Volkswagen, BMW, Xiaopeng, Mercedes-Benz, BYD and Honda.

In August, the company drew widespread public uproar after mass-terminating the contracts of 107 newly hired university graduates. 

According to a report released by Changzhou's human resources and social security bureau on August 25, the company moved to terminate labor contracts with 107 newly-hired college graduates. This year, the company hired 440 college graduates.

"The negotiation process was simplistic and rigid, lacking sufficient and effective communication, which caused adverse social impact," the bureau said.

Xingyu's overseas client Volkswagen said in a statement sent to the Global Times on Monday that "Upon receiving information regarding allegations concerning one of our suppliers, we immediately initiated an investigation into the matter and are currently working to clarify the facts." 

"Respecting workers' rights is a fundamental principle that guides all our business activities. Basic values and rights must be respected and protected across our entire supply chain, and we take any allegations of violations seriously," the company said.

On August 27, Xingyu issued an apology for rescinding job offers to the 107 graduates. The company said that it will provide some subsidies to aid their job hunt, and offer compensation equivalent to six months' salary if they remain unemployed within three months.


Global Times