OSI (China) will be implementing a Worker Redundancy Plan (“WRP”) at Shanghai Husi Food Co. Ltd., beginning today. The WRP has been reviewed by local government and the trade union and this announcement relates only to Shanghai Husi workers.
OSI (China) has notified affected workers and advised them of their available options. Since July 21, 2014, most of these colleagues have been on paid leave.
“It was our expectation that they could resume their work as soon as possible,” the company said in a statement. “Unfortunately, due to circumstances beyond our control, this will not be the case.
“Over the past two months, Shanghai Husi has experienced significant financial and customer losses and the authorities’ investigations are still ongoing. It is very unlikely that production will be resumed soon. A small number of staff, however, must be retained in order to assist with the ongoing authorities’ investigations – as such, Shanghai Husi cannot be fully shut down at this stage.
“A total of 340 workers are to be made redundant – 226 are directly employed by Shanghai Husi and 114 are contractors to Shanghai Husi. We are working closely with government agencies to ensure that severance payments will be made to these workers in accordance with all applicable laws, as well as company policies.
“This is a difficult decision for a responsible employer like OSI. Besides the compensation package, we are also working closely with local government agencies to provide support to affected workers, including career development coaching, job search, and skills training,” the company said.
Source: OSI Group LLC