A Huawei supplier in Guangdong province has reportedly asked its workers to take holidays of up to six months as the trade war between the US and China intensifies.
Good Mark New Industrial Company, a Dongguan-based firm that manufactures plastic molds and CNC machined parts for Huawei Technologies and other tech companies, asked its staff to take three-month holidays in batches due to a drop in business, sohu.com.cn reported, citing an internal company memo.
The holidays could extend to six months at the longest. The company asked its employees to be cooperative and to face the hardships together. It said based on the Regulation of Guangdong Province on Payment of Wages, all workers would receive a salary during the holidays, but full-month wages would only be given in the first month.
In the second month, the salary would be discounted. Workers could only get 80% of their minimum wage, which was set at 1,720 yuan (US$219) a month in Dongguan city. Staff were also asked not to enter the factory premises.
The company employs about 8,000 people, but the report did not mention how many staff were affected. The company was founded in 2011 and has an annual production value of three billion yuan. Besides Huawei, clients include ZTE, Lenovo, OPPO, Meizu and TCL.
In late May, the Nasdaq-listed Flex reportedly asked its factory workers in Zhuhai, Guangdong province, to take one week off after it decided to suspend its contract manufacturing services for Huawei.