Amid global economic downturn and multiple challenges facing the cross-border e-commerce industry, a leading Guangzhou-based company has sparked employee outrage by implementing compulsory rotational leave policies, raising allegations of "disguised layoffs."
Controversial Furlough Scheme Draws Employee Protests
According to insiders, the company plans to force hundreds to thousands of employees into rotational leave from September 26 through November, paying only 80% of the local minimum wage during this period—approximately 1,800 yuan ($250) per month. Many employees perceive this as an attempt to circumvent substantial severance payments that would otherwise amount to tens of thousands of yuan per employee under normal layoff procedures.
Mounting Pressures in Cross-Border E-Commerce Sector
The cross-border e-commerce industry faces multiple challenges including plummeting order volumes, persistently high international shipping costs, and recurring pandemic disruptions. With labor costs constituting a significant portion of operational expenses, workforce reductions have become a common strategy for companies struggling with declining revenues. However, such measures often impose severe financial and psychological burdens on employees.
Internal Revelations Suggest Systematic Cost-Cutting
As early as August, company insiders reported a series of controversial measures including mandatory single-day weekends, delayed performance bonuses, mass layoffs, suspension of benefits (including meal subsidies and attendance bonuses), and cancellation of annual bonuses. Additionally, the National Day holiday was reportedly shortened from seven to four days, while changes to annual leave calculations effectively reduced employee compensation.
Employee Morale Plummets Amid Policy Changes
The cumulative effect of these measures has created widespread dissatisfaction and anxiety among staff. Many employees expressed frustration with recent performance evaluation reforms, with one stating: "Four days off per month, no overtime pay, no attendance bonus, no year-end bonus, poor performance ratings with no bonuses—they're using every means to make us quit voluntarily."
Navigating Industry Downturn: Strategies for Employees
As the cross-border e-commerce sector faces headwinds, industry experts advise employees to enhance their professional skills and market adaptability. Developing unique competencies and staying informed about industry trends can help workers maintain stability during challenging periods.
Legal Experts Question Policy Legitimacy
Labor law specialists suggest the company's unilateral modification of employment contracts and salary reductions may violate China's Labor Contract Law. Legal professionals emphasize that genuine operational difficulties should be addressed through mutual agreement with employees, not through measures that compromise worker rights. Affected employees retain legal recourse to protect their interests.
Industry Calls for Balanced Approach to Workforce Management
The incident has reignited discussions about corporate social responsibility in China's cross-border e-commerce sector. Industry observers argue that sustainable growth requires companies to balance cost efficiency with employee welfare, warning that excessive focus on short-term savings may ultimately damage corporate reputation and competitiveness. Companies are urged to explore innovative operational models that align business viability with workforce stability.