Summary of Key Points
As a leading company in the domestic automotive lighting industry (ranked seventh globally and first in smart lighting), Xingyu Co., Ltd., despite its good profitability and preparations for an "A+H" listing (a combination of domestic and Hong Kong stock markets), has not only significantly reduced its number of full-time employees (with 3,182 production staff cut between 2024 and 2025) and increased reliance on outsourced labor but also terminated contracts with hundreds of recent master's graduates. The company's owner, Zhou Xiaoping, has stated that she intends to file a complaint against "misleading reports," yet the company claims that its orders have not been affected. The article criticizes this behavior for not only severely harming the rights of the graduates but also going against the national employment protection policies, damaging the international image of Chinese companies, and potentially leading to a trust crisis between employers and employees. It calls for either strict punishment of the company for its illegal actions or the immediate improvement of relevant legislation.
Xingyu Co., Ltd.'s Contradictory Practices: Profitable, Yet Cutting Jobs and Terminating Contracts with Graduates
Xingyu Co., Ltd. is not a company on the brink of collapse; it is a leader in the automotive lighting sector and the global market for smart lighting, with plans for an "A+H" listing, indicating its financial stability. However, it has engaged in two contradictory actions:
1. Cutting staff while increasing outsourcing: The number of full-time employees has been reduced from over 10,000 to just over 7,000, with a decrease of more than 3,000 production workers. At the same time, the company has increased the amount of time spent on outsourced labor from 8.64 million hours to 10.87 million hours. Outsourced workers do not require stable contracts or social security benefits, reducing the company's costs.
2. Complaining about media reports while claiming no impact on orders: The owner has threatened legal action against "misleading reports," yet the company insists that negative public opinion has not affected its orders. This is perplexing: if the reports are false, why doesn't the company provide evidence? If they are true, then it seems that the company doesn't care about public opinion. Alternatively, could these reports have hit a sensitive issue, and the company is just trying to tough it out?
The Hidden Harm Caused to the Terminated Graduates
Xingyu did not terminate contracts with ordinary workers but with recent master's graduates. For these students, the consequences are far more severe than just losing a job:
- Loss of the graduate advantage: The period after graduation is a golden time for finding jobs, as many companies only hire fresh graduates. Losing this opportunity means having to compete in the open job market, which is much harder due to the requirement of work experience.
- High opportunity cost: It takes three years to train a master's graduate, and families and individuals invest a lot of time and money. These students may have had other better job offers, but by accepting a contract with Xingyu, they missed them. Now, all their efforts are in vain.
- Psychological impact and resume damage: Being terminated shortly after graduation results in a negative entry on their resumes, which can raise doubts with employers and significantly damage their confidence. The company's attempt to resolve the issue with a few months' salary is insufficient to compensate for the harm caused.
Going Against National Employment Protection Policies
As a leading company, Xingyu should be working to stabilize employment rather than cutting jobs. The current employment situation in China is severe, with the central and local governments focusing on employment protection. The State Council recently released the "15th Five-Year Plan for Employment Priority." Xingyu, as a leader in its industry, should be setting an example:
- The automotive industry is still growing, and Xingyu has orders from international giants and domestic demand is increasing, indicating its ability to hire more people.
- However, by cutting jobs and relying on outsourcing, it is undermining employment efforts. If leading companies follow this trend, it will only make the already difficult employment situation worse.
Damaging China's International Trade Image
Countries in Europe, America, and Japan often use issues with Chinese labor practices to pressure China's trade. Xingyu's actions provide them with ammunition to criticize China's labor policies. With China's large trade surplus and complex external environment, such practices can lead to accusations of neglecting workers' rights, which can affect trade negotiations. For example, European countries may use this as a pretext to impose tariffs or restrict imports of Chinese auto parts.
The More Serious Issue of Trust Crisis
The real concern is the trust crisis between employers and employees. The public outcry is not just about these 107 graduates but about the millions of others each year. Graduates can tolerate difficulties in finding jobs, but they cannot accept that leading companies blatantly terminate contracts with them. If such behavior goes unpenalized, graduates will lose trust in companies, making it harder for them to secure jobs and for companies to attract talented talent. In the long run, this will damage the trust between employers and employees and disrupt the entire employment market.
The article concludes by suggesting that either Xingyu must be held legally accountable (to deter others from similar actions) or the laws must be improved. The issue is not just about Xingyu but about the broader impact on the employment environment and China's international reputation. Leading companies should have a greater sense of social responsibility and not focus solely on saving money and making quick profits.