Xingyu Auto Raises Outsourced Hourly Pay After Graduate Dispute
Xingyu Auto, a leading Chinese automotive lighting maker, will raise retention bonuses for outsourced hourly workers from RMB 2 to RMB 3 per hour starting September 1. The adjustment follows a controversy over its handling of recent graduates, which drew regulatory scrutiny and a public apology. The new pay structure brings monthly earnings to about RMB 8,500.
Xingyu Auto, a leading domestic automotive lighting manufacturer, has adjusted pay for outsourced hourly workers. Starting September 1, the retention bonus for hourly workers will rise from RMB 2 per hour to RMB 3 per hour. Under the revised structure, outsourced employees who remain on the payroll at payday will receive RMB 23 per hour, comprising a base wage of RMB 20 plus the RMB 3 retention bonus. Those not on the payroll at payday will still be settled at RMB 20 per hour. Including a night-shift allowance of RMB 20 per night and a monthly attendance bonus of RMB 300, and based on roughly 300 working hours per month, outsourced hourly workers can expect take-home pay of about RMB 8,500.
Earlier, Xingyu Auto was reported to have presented recent graduates with a choice between resignation and taking assembly-line work. The Changzhou Municipal Human Resources and Social Security Bureau found the company's communication style blunt and inappropriate. The human resources director involved was suspended, the company issued a public apology, and compensation measures were implemented. Volkswagen has received related complaints and launched a special investigation.