Guantao assists an SOE in large-scale wire and cable industry in successfully resolving employee labor relations during its cross-city relocation
Recently, Guantao was entrusted by a state-owned enterprise (SOE) in the large-scale wire and cable industry to assist in handling labor relations matters for employees affected by the factory's cross-city relocation. The project has now been successfully concluded.
To adapt to evolving market dynamics in the industry, the SOE in the large-scale wire and cable sector has undertaken an asset restructuring initiative, which includes the complete cross-city relocation of all production lines from a district in Shenzhen to other cities within the Greater Bay Area with lower operational costs. This relocation effort involves the proper relocation of over 600 employees and the resolution of associated labor relations matters.
Following the client's engagement, Guantao formed a dedicated project team led by Partner Hu Qinghai and assisted by attorneys Wang Ning and Yang Xiaohe and assistant Sun Yuan. Given the project’s challenges, including the large number of employees involved, extensive seniority profiles, and the need for cross-city relocation, the team leveraged their deep expertise in employment law and practical experience to assist the client in successfully resolving labor relations adjustments for over 600 employees. Through phased and step-by-step negotiations, the team implemented tailored solutions such as tenure buyouts, tenure continuance, and signing bonuses, allowing employees to voluntarily and consensually sign agreements through friendly consultations. The process was completed without any group incidents, escalations, or adverse social impacts.
The project team’s exceptional performance in this initiative provided critical support for the SOE’s steady progress of asset restructuring and the smooth transition of employees, earning high praise from both the client and relevant local government departments..