Labour Tribunal Compromise

In what is being viewed as a landmark case, the Dongguan Labour Disputes
and Arbitration Committee (LDAC) has awarded 61 workers a total of Rmb
250,000 in compensation for dismissals that breached China's labour laws.
However, the amount is way below the Rmb 1.2 million the workers were
seeking in compensation from their previous employer, VTech Electronics.

Local lawyer Zhang Lili who represent the workers said that the LDAC
had only taken basic salary into account when fixing the compensation
figure. She argued that it should also include bonuses and other allowances.
A workers' representative said they would take their case to the Dongguan
Intermediate Court and refuse to accept the payout. He also claimed that
VTech Electronics, a subsidiary of VTech Holdings, sacked over 800 workers
between October and November last year.

A company spokesman expressed pleasure at the LDAC's ruling and confirmed
that none of the workers had so far accepted compensation.

(HK: SCMP 20/03/01)

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