Financially troubled Sinopacific Shipbuilding has signed settlement agreements with its Shanghai employees, under the mediation of a local labour arbitration court.
Sinopacific it is getting rid of its entire Shanghai operations in order to cut costs.
According to an employee from Sinopacific, the company will pay salaries in default before April 20 and pay compensation before August 30.
Sinopacific’s Dayang Shipbuilding has already agreed to bring in a new investor, SUMEC Group, a machinery manufacturer in Jiangsu for restructuring, under the government’s coordination.
The shipyard also plans to lay off 600 employees. Jiang Qiang, ceo of Sinopacific Shipbuilding, has also resigned from the company.