I. Summary of the Core Content in Plain Language
Recently, Xingyu Co., Ltd., a leading company in the domestic automotive lighting industry and founded by the former richest person in Changzhou, faced a major public backlash due to a series of incidents involving the humiliating dismissal of newly hired graduates. Subsequent actions by the company, such as a 1-yuan per-hour wage increase, the inability to locate the responsible HR personnel, and the company's decision to report the media for alleged inaccuracies in their reports, only served to highlight the company's arrogance. This incident not only exposed the contradiction between the company's claims of a "family-oriented culture" and its actual labor practices, which fell short of local standards, but also revealed other hidden issues in the industry, such as the lack of employment support for graduates, inflated industry awards, and historically low wages in manufacturing. Ironically, it was the students who were victimized who turned to foreign clients for help, receiving the fastest response and bringing the absurdity of the situation to a peak.
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II. Detailed Analysis of the Situation
1. The Public Outrage Was Self-Induced by Xingyu's Actions
Initially, many believed that the company would resolve the issue with an apology and a financial compensation, but three of Xingyu's actions only fueled the public anger:
- The company's decision to increase the wages of outsourced workers by a mere 1 yuan per hour was clearly an attempt to capitalize on the situation to attract new employees. Even intermediaries, who often criticize companies for unfair practices, felt this was disrespectful and offered to pay the workers an additional 2-3 yuan per hour to bring the wages closer to the local average.
- When the order for employees to either resign voluntarily or work on assembly lines was announced, no one in the company could be held accountable. There was no HR director mentioned in the official statements, and thousands of employees claimed they had never heard of such a position, leaving the company without a face to take responsibility for the issues.
- Shortly after the chairman apologized, he publicly stated that he would report some media reports as inaccurate. In a normal company, facing negative publicity, they would try to resolve the issue quietly, but Xingyu's attitude clearly showed that they saw their apology as a form of courtesy, not a recognition of their mistake. These three actions combined to make it clear that the company was arrogant from top to bottom, leading to an even more intense public reaction.
2. The Most Absurd Aspect: Master's Degree Holders Forced to Work for Low Wages
Many were surprised to learn that Xingyu, a leading company in its field, paid its frontline workers only 20 yuan per hour. Even its senior project managers, with five years of experience, earned an annual salary of 200,000 yuan, which was 100,000 yuan less than the industry average. The situation was even more absurd for the affected graduates, many of whom had to pay significant severance fees to leave their previous jobs to join Xingyu. After just one month, they were faced with a choice: receive half a month's salary and leave, or work on assembly lines for 11 hours a day for 20 yuan per hour. The number of dismissed graduates (120 out of over 400) was much lower than the initial claim of 107. Many lost their social security benefits, job placement opportunities, and various financial incentives, effectively ruining their fresh graduate careers.
3. The Failure of Key Stakeholders to Stand Up for the Students
Several key parties failed to support the students:
- The universities involved, through which the graduates were hired, remained silent despite being aware of the situation.
- The "Top 10 Best Employers in Changzhou 2025" award, which Xingyu won, was actually awarded by Zhaopin, a recruitment platform that did not verify the company's labor practices. Xingyu had exaggerated its competitive benefits in its application materials, securing the award through clever writing.
- The company's own management structure was so disorganized that no one was accountable for the issues, allowing the company to shift the blame to the newly hired graduates.
4. The Students' Effective Strategy: Targeting Foreign Clients
The students' approach was highly effective. They sent their complaints to the Hong Kong Stock Exchange, as well as to Xingyu's major foreign clients, including Mercedes-Benz, BMW, and Volkswagen. The foreign companies responded quickly: Mercedes-Benz launched an investigation, and Volkswagen demanded corrective actions. This was because foreign companies have strict compliance requirements for their supply chains, and any reputation damage could result in them removing Xingyu from their supplier list. Xingyu, being a major taxpayer and a leading local company, faced more lenient treatment from local authorities.
5. The Reality of Manufacturing Wages
The low wages in the manufacturing industry were a shock to many. While some criticized Xingyu, many workers on the assembly lines welcomed the job, as the average annual wage in the manufacturing sector nationwide is only 79,000 yuan, or 6,500 yuan per month, including overtime and bonuses. In some small factories in southern Jiangsu, workers earn as little as 22 yuan per hour with no guaranteed salary or social security. Xingyu's relatively good conditions (stable wages, timely social security payments, and a higher hourly rate) were considered "good jobs" by local standards.
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In summary, this incident highlights the stark reality of manufacturing wages and the lack of support for new graduates in the industry. It also raises questions about the role of universities, employers, and government agencies in ensuring fair labor practices.