Sinovel puts 12% of staff on "paid vacation"

CHINA: Sinovel has decided to give 350 staff workers, 12% of its employees, a paid vacation from 19 November until it returns to normal production.

by Jianxiang Yang 19 November 2012

The move was announced in a circular on 15 November. For the first month Sinovel said it would pay the 350 staff, who work in posts that are running below capacity or have stopped production, the promissory wages as stipulated in the labour contracts according to  national and Beijing municipal regulations.

From the second month it will pay 80% of the minimum wage of Beijing city as basic living expenses. Sinovel would continue to pay the workers' basic social insurance and housing costs.

Sinovel described the move as a "paid vacation" and said it abided by the labour law. No jobs will be cut.

So far this year, Sinovel has adjusted production and operation, with many posts running under production capacity or stopping production entirely due to the sluggish overall economic situation and tightened industrial policy.

Recently, Sinovel saw operating revenues drop 57% year on year to the value of CNY 3.634 billion ($577 million) in the first three quarters. Its net loss amounted to CNY 256 million, with net profits down 216% year on year.