Xingyu Auto Parts Punishes GM with 12-Month Pay Cut, Dismisses HR Director Over Mass Rescission of 107
Changzhou Xingyu Automotive Lighting Systems Co. , Ltd. penalized its general manager with a 12-month salary deduction and dismissed its HR director after mishandling the recruitment of 107 college graduates, who were forced to resign or face reassignment to assembly-line jobs. The company offered compensation and apologized following regulatory scrutiny.
Changzhou Xingyu Automotive Lighting Systems Co. , Ltd. issued a disciplinary decision on September 7, citing the significant adverse impact caused by its improper handling of certain newly recruited college graduates in early August. Following a resolution at the company's management meeting, General Manager Zhou Xiaoping received a 12-month salary deduction for management responsibility; Deputy General Manager Li Shujun, who bore direct supervisory responsibility, was reassigned away from human resources and received a six-month salary deduction; Human Resources Director Yu Zhiming was dismissed; and Human Resources Department head Li Mei was demoted and transferred.
Xingyu had recruited 440 college graduates for 2026. Shortly after they started in July, the HR department held individual meetings with all graduates, presenting an ultimatum: resign voluntarily for personal reasons and receive half a month's salary as compensation, or be reassigned to frontline operator positions with pay recalculated under the general worker system. Ultimately, 107 graduates had their labor contracts terminated. Some graduates filed complaints with labor regulators, the Hong Kong Stock Exchange, and overseas clients including Mercedes-Benz and Volkswagen.
On August 25, the Changzhou Municipal Human Resources and Social Security Bureau reported that Xingyu had terminated contracts with 107 graduates, noting that the negotiation process was simplistic and blunt, lacking sufficient and effective communication, and causing adverse effects. The bureau said the HR director had been suspended. It also found no evidence that the company had improperly enjoyed government subsidies for employment or talent programs. On August 27, Xingyu apologized and proposed compensation: job-seeking and living allowances, assistance in finding suitable positions at other companies, and six months' salary compensation if graduates remained unemployed after three months. On September 2, Chairman and General Manager Zhou Xiaoping publicly expressed deep reflection and a sincere apology.