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The labor authority in Shenzhen launched a three-month campaign yesterday to punish firms not paying the compulsory minimum salary to employees.

Kin Wah Watch (Shenzhen), a Hong Kong-funded watch manufacturer in Nantou District of west Shenzhen, learned a hard lesson before the action began.

It was raided earlier this month after the labor authority received a letter from employees saying they had to work overtime but were poorly paid.

After checking income records, enforcement officials found the monthly salaries of 33 workers, out of a total 54, did not meet the minimum level of 810 yuan (US$101.3) in July. Their overtime pay was much less than normal.

"We can't just wait for complaints. It's time for us to visit companies and factories citywide to check their income records and talk with employees to look for offenders," said Guan Lingen, director of the Shenzhen Labor and Social Security, yesterday.

"This will be a blow to immoral bosses. If they think the minimum salary in Shenzhen is too high, they can consider moving to other cities where minimum salaries are much lower," Guan noted.

From July 1, the city has had a new minimum salary for workers inside its special economic zone, increasing it to 810 yuan (US$102) from 690 yuan (US$87), for an eight-hour day, five days a week.

Those outside the special economic zone now get 700 yuan (US$87.5) instead of 580 yuan (US$73).

The watch firm's general manager, Kin Wah, surnamed Tan, told officials yesterday that the company has made up the workers' losses, a total of 16,550 yuan (US$2,069), and will now strictly follow labor laws.

However, the firm still faces a fine of 30,000 to 50,000 yuan (US$3,750 to 6,250) for violating the law and is subject to further investigation by the labor authority. The company was exposed with another 11 offenders.

(China Daily September 15, 2006)