China Factory Owner Distributes $1 Million Among 400 Ex-Workers. Here's Why

A factory owner in China recently shared a payout of nearly $1 million (approximately Rs 8.22 crores) with more than 400 former employees 20 years after the unit in central China was shut down. According to the South China Morning Post, Guo Chongzhi, 70, was the director of the Chongqing General Valve Factory, which was established in 1971 with a workforce exceeding 400 at its peak. However, due to financial troubles, the factory was shut down in 2000 and the building was demolished in 2018 as part of the city's municipal land acquisition plan. 

As per SCMP, it was only in March last year that Mr Guo received $1 million in compensation for the demolished factory building. That's when he decided that every former employee, whether retired, resigned or dead, deserved a share. 

After extensive meetings, the 70-year-old decided to divide the compensation into two parts - 35% for previous employees and 65% for those still working immediately before the factory shutdown. The amounts were then further divided based on each person's time at the factory. However, because the factory had been closed for decades, locating the former employees and their families proved difficult.

"That period was extremely stressful," Mr Guo reflected. "I almost had insomnia every night, waking up after just an hour of sleep. I lost about three kg in a fortnight," he said. 

Mr Guo revealed that his strategies to track down the people included posting "missing persons" notices in the community and asking the police for contact information. He had also reached out to multiple media outlets, which successfully helped him find about 20 people.

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The factory owner was able to find and compensate one of his former employees, Wen Zhihong before she passed away from a serious illness, as per SCMP.  "My mother had cancer and could no longer speak. My father brought the cash to her hospital bed to ease her mind. She passed away a few days after seeing the compensation. Our family is grateful to director Guo," Wen Zhihong's son told the outlet. 

So far, Guo Chongzhi has been successful in compensating 371 of his former workers. His list has 406 names. The factory owner has appealed to the media for assistance in finding 35 people who are yet to be located. 

"Everything is in place for these employees - we're just waiting for them to come forward, sign, and receive their money," he said.