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September 23, 2014

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340 people laid off by tainted meat supplier

HUNDREDS of workers at Shanghai Husi Food, the company at the center of the tainted meat scandal, have been laid off, its parent company said yesterday.

A redundancy plan has been reviewed by the local government and trade union, and the affected workers have been advised of their options, OSI (China) said in a statement.

A total of 340 people will lose their jobs, including 226 directly employed by Husi and 114 contractors. A small number will be retained in order to assist with the ongoing investigation, the statement said.

Most employees have been on paid leave since the scandal broke in July.

Though the company did not say how much redundancy pay each worker will receive, Dragon TV reported yesterday that a male worker with 14 years’ experience was paid 90,000 yuan (US$14,650), while a woman employee with five years’ experience was given 24,000 yuan.

In addition to the severance package, OSI China said it is working closely with local government agencies to help those made unemployed with career development, job searches and skills training.

“Shanghai Husi has experienced significant financial and customer losses, and the authorities’ investigations are still ongoing so it is very unlikely that production will be resumed soon,” the OSI statement said.

Meanwhile, the Shanghai Food and Drug Administration said yesterday that it has spoken to the principal in charge of OSI China and reiterated that it should bear responsibility for the food safety issue at Shanghai Husi.

It said in a statement that the company should also comply with the government’s investigation into the Shanghai plant.

At the end of last month, prosecutors in Shanghai approved the arrests of six executives of Shanghai Husi in relation to the safety scandal that affected many global fast food companies and low-cost burger chains like KFC and McDonald’s.

OSI said it is conducting an internal investigation into its other manufacturing facilities in China to ensure they meet global standards for quality assurance, compliance and auditing.

Headquartered in Illinois, United States, OSI Group has a presence in 17 countries around the world.




 

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