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Government pays 1,200 employees of closed factory

(Xinhua)
Updated: 2008-10-28 00:05

SHENZHEN -- About 1,200 employees of an appliance factory which was closed on October 20 amid the global financial crisis got their payments from the local government on Monday.

The Xixiang street office, part of the Baoan District of Shenzen City,  paid a total of 8.55 million yuan (US$1.24 million) to the staff of Hong Kong-listed BEP International Holdings Limited's factory in Shenzhen City, Guangdong Province.

The payment was the workers' salaries from August to October and overtime pay.

"I am very glad to get my salary of 1,100 yuan (US$160)," said Zhou Kexiang from central Hunan Province. But he said he would ask for compensation of 15,000 yuan from the company in line with labor laws and regulations as he had been working there since 1995.

The factory was shut down after its exports had dropped drastically this year, registering huge deficits.

The local court has sealed the factory's assets.