After 7.7-million yuan award, factory owner distributes funds to 400 former staff: reports

The owner of a shuttered factory in China has tracked down more than 400 former employees to share the nearly eight-million-yuan payout that he received.

Guo Chongzhi, former director of the Chongqing General Valve Factory, received 7.7 million yuan in compensation after the Chongqing City's municipal land acquisition plan demolished in 2018 the building of his former factory that shut down in 2000.

Guo then decided to distribute the compensation that he received to his former employees, reasoning that they deserved a share from the payout, the South China Morning Post reported.

According to the report, those who worked for the company until it shut down received 65% of the share. Former employees, including those who resigned, received 35% of the compensation. The amount given also varied depending on each employee's time at the factory.

Tracking down former employees

The director was able to distribute the compensation to 371 former employees, out of the 406 people on his distribution list, the SCMP reported.

He took various measures to find former staff, including asking the police, reaching out to multiple media outlets, and even using the "missing persons" notices in the community.

"That period was extremely stressful," Guo told the Chongqing Daily News as quoted by SCMP. "I almost had insomnia every night, waking up after just an hour of sleep. I lost about three kg in a fortnight."

He continues his search for 35 more people who have yet to claim their share in the compensation, with Guo turning to the media for help.

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