Hubei Province is set to implement a policy-driven closure and bankruptcy program for 30 state-owned enterprises by the end of 2008, according to a recent meeting on state-owned enterprise restructuring. Among the companies involved are well-known names such as Dongfeng Tire Group and Jingyi Chemicals. These closures will take place across seven cities in Hubei, including Wuhan, Huangshi, Shiyan, Yichang, Jingmen, Xianning, and Ezhou. The affected industries include textiles, chemicals, and metallurgy, with over 80,000 employees impacted.
According to a report in the Hubei Daily, the primary use of the assets from these bankruptcies will be to resettle the employees. Any financial shortfalls will be covered by local government funds, and workers may also be eligible for early retirement benefits, up to five years ahead of schedule. Special measures will also be introduced to support laid-off workers, including those who are part of dual-income households or have specific employment challenges, to help them find new jobs.
Ren Shimao, the vice governor of Hubei Province, emphasized that the government bears the main responsibility for managing this transition. He highlighted that the process involves more than just closing down companies; it includes resettling staff after bankruptcy, transferring the company’s social functions, handling employee insurance, and resolving outstanding debts. "Close the door and pay off the debts" has become the guiding principle for this initiative.
It's worth noting that after 2008, China will no longer accept applications for policy-driven bankruptcies of state-owned enterprises, signaling a shift in the country’s approach to restructuring its industrial sector. This move aims to promote more market-oriented solutions and reduce the burden on public finances. As the process unfolds, the focus remains on ensuring a fair and smooth transition for workers while laying the foundation for long-term economic stability.
Rivet Nut,Rivet Nut Screw,Stainless Steel Rivet Nuts,Rivet Nuts
Suzhou Chenran Precision Fasteners Co., Ltd. , https://www.chenranfastener.com