GE Lighting China layoffs, low standard compensation caused employee conflict

by:ALLTOP      2020-03-15
Chen Han has also publicly admitted that GE Lighting is relatively backward in some local markets, but he stressed that GE lighting is still relatively strong in the North American market, because of its position in each local market, including different market influences, GE Lighting's strategy in each local market will also be different. GE Lighting, which is well-known for a hundred years, has recently had to terminate its business in Asia due to strategic adjustments. The situation of internal and external difficulties has also arrived: the dealers once protested and the layoff plan also caused the employees to rebound. On November 23, people familiar with the matter broke the news that GE Lighting China was undergoing large-scale layoffs, and some employees were required to obtain compensation and dismissal with the low standards of the labor law. The incident was just two months after the company announced the termination of its Asian business, and nearly 30 dealers jointly protested GE Lighting's sudden termination of the agreement. The above-mentioned insiders revealed to financial reporters that GE Lighting is gradually withdrawing from its Asian business including China. (GE) Lighting China will leave a few, but many employees will lose their jobs. GE Lighting has a headquarters of about 100 people, and many other offices ( Beijing, Nanjing, Tianjin, Guangzhou, Shenzhen, Jinan, etc)Add up to a total of hundreds of people. Some employees have reached an agreement with the company that they will be compensated according to a higher standard, but another group of employees are required to be laid off according to the low standards of the labor law. People who have not received higher compensation may collectively go to GE Lighting China headquarters next week--- Discussion on No. 1 Hua Tuo Road, Zhangjiang High-Tech Park, Shanghai. The reporter inquired about the official website of GE Lighting, and its news remained on the February 2015 preparations for 2015. GE Lighting revealed the new LED product line. Today, the reporter also asked Chen Wei, the general manager of GE Lighting China, for the layoffs complained by some people familiar with the matter. The other party gave a public relations contact person, but the landline has not been answered. When the home appliance business was sold, the proportion of lighting to GE's business was too small, accounting for only 2 of the company's sales, Chen Hao once mentioned in an interview with the media. After inquiring about GE's 2015 financial report, the reporter also found that the annual income of appliances lighting was 8. 8 billion US dollars, of which Asia accounted for 3, europe's income of only 3,88 still comes from the United States. Chen Han has also publicly admitted that GE Lighting is relatively backward in some local markets, but he stressed that GE lighting is still relatively strong in the North American market, because of its position in each local market, including different market influences, GE Lighting's strategy in each local market will also be different. GE's financial report also shows that the company has a total of 9 major sectors: electricity, renewable energy, oil and gas, transportation, capital, medical care, appliances lighting (Electrical appliances and lighting) Among them, electrical appliances and lighting revenue accounted for 7% of GE's total revenue. It can be seen that the influence of lighting business in GE company is limited. The development of this sector in China is not smooth, and it is left behind by two other major lighting brands such as Philips and Osram, therefore, GE Lighting's practice of stopping its business in Asia is also part of the company's strategic adjustment. In fact, in addition to layoffs, some dealers were disappointed when GE Lighting announced its withdrawal from the Asian market a few months ago. The conflict between each other stems from the termination of the distributor agreement. The agreement was developed by General Electric Enterprise (Shanghai)Issued by the company, the content is as follows: Our company (GE) We signed the distributor agreement with your company on January 1, 2016. According to the relevant provisions of the agreement, our company hereby informs your company that the agreement will terminate on November 30, 2016. Subsequently, more than 20 GE Lighting dealers jointly protested that GE Lighting only relied on a blank sheet of 100 words without any communication in advance, any aftermath handling team or any solution, after abruptly terminating the dealer agreement of more than 20 years of cooperation, we all agree that GE's practice is extremely irresponsible and treats customers and dealers so simply and roughly, it is against the values that GE has always claimed. According to the joint statement issued by dealers at that time, at present, there are still tens of millions of yuan of products in many dealers' warehouses that have not been settled due to quality problems, bringing huge economic losses to customers and dealers, they called on GE Lighting to refund the full original price; At the same time, it is hoped that GE Lighting will make reasonable compensation for the huge market expenses and personnel expenses invested by dealers in commercial activities, and require GE to give reasonable transition time. 5-7-year quality assurance should be cashed to customers, etc.
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