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Trade union identifies problems at paper tycoon's firm

(Xinhua)
Updated: 2008-04-27 10:37

The company led by a scrap paper merchant who topped China's rich list in 2006 violates workers' legal rights and interests and uses penalties too much, the local trade union said on Saturday.

There are management problems in the Nine Dragons Paper (Holding) Ltd, owned by Zhang Yin, said Kong Xianghong, vice chairman of the Guangdong Provincial Trade Unions Federation.

Kong's remarks came after some Hong Kong student organizations published a report, revealing misbehavior in five Hong Kong-listed companies, including Nine Dragons Paper.

The report, jointly compiled by Students and Scholars Against Corporate Misbehavior (SACOM) and student unions of two Hong Kong universities after investigation into the companies' mainland subsidiaries, condemned Zhang's company as "shameful among Hong Kong companies" because of unsafe working conditions, bad welfare treatment and other issues violating labor laws and regulations.

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Kong said the trade union had dispatched six investigators to conduct a sample survey among 100 workers of Nine Dragons Paper concerning issues of welfare, work accidents, unreasonable penalties, and job satisfaction.

According to the feedback, the welfare policies are relatively satisfying, but there are problems of violating workers' legal rights and interests and excessive use of penalties in the company, Kong said.

He said the company's administration had admitted violating employee's benefits by imposing improper fining regulations, and promised to hold a conference soon to work out a new workers' manual concerning the issue.

Zhang, 51, is the founder and board chairwoman of Nine Dragons Paper - one of the world's biggest paper makers. She was named by the annual Hurun Report as China's richest woman two years ago, with a fortune estimated at 27 billion yuan ($3.8 billion) after her company was publicly listed in 2006.

Xinhua reporters are still trying to contact the company for comments.