Jiangsu Taizhou-based Sanfu Shipbuilding is embroiled in a series of salary disputes with employees due to financial difficulties, an employee from the yard has revealed to Splash.
According to the source, many employees from the yard haven’t been paid for months, and some employees have left the shipyard after reaching severance agreements with the company, only for the yard not to make good on the severance payments.
When contacted by Splash, an official at Sanfu Shipbuilding admitted the yard is facing financial difficulties due to a sluggish market, but said the yard is operating normal and it will try its best to solve the disputes.
Private shipyards in China are suffering from a lack of new orders. Sanfu Shipbuilding hasn’t received any new orders to date this year.
In April, Precious Shipping cancelled three of four 39,000dwt bulkers on order at the yard, retaining the fourth at a renegotiated price of $18m, while also negotiating the price of four 64,000dwt bulkers due for delivery this year down to $25m.