Fitness club owes 100 employees salaries (I)

08 September 2006

[Broadcast on 13 July 2006]

On 8 May, 109 employees of Work-Fitness fitness club on the 4th floor of Changjiang Chungwen Plaza in Wuhan signed a labour contract with the company which was a subcontractor to run the gym. Unexpectedly, one month later, the boss did not pay employees their salaries according to the contract. Employees elected representatives to negotiate with the boss, but came to nothing. After another two weeks, Changjiang Chungwen Plaza ended the subcontractor contract. Employee representatives approached the Wuhan City Labour Bureau, but ended up being pushed around between labour inspection and labour arbitration authorities. To date, the problem has not yet been solved. After knowing about this incident, I found employee representative Tao Jingjin. Below I'm going to broadcast the details of this incident he introduced to me.

Worker representative (WR): No, it hasn't been solved. The situation is like this, Changjiang Chongwen Plaza has five storeys in total and the whole building belongs to Chungwen Plaza. The 4th floor signed a special development agreement with it, giving many sites and clubs for the boss, Wang Licheng, to manage, dividing the profit between them in the ratio 40:60.

Han Dongfang (Han): Who is the boss who owes you your salary? What unit are you working in?

WR: Fitness club. The type where people come to play and they issue membership cards.

Han: A gym?

WR: Yes.

Han: When did it start to operate?

WR: 24 December last year. He owes us our salary in May.

Han: He did not give you your salary in May this year?

WR: The boss opened the gym in Wuchang before in the name of Work-Fitness. Now he has gone to his old shop in Hankou.

Han: When he opened this shop here, had Hankou already got one?

WR: Yes. We went to the Labour Bureau to reflect this incident. The Labour Bureau said that they cannot control it, unless the shop in Hankou is opened in the name of Work-Fitness.

Han: Is the gym still open now?

WR: Yes, the operation license has already been taken back by Chungwen Plaza.

Han: Taken back by this multi-storey building?

WR: Yes.

Han: So this boss is not operating in this building any more?

WR: Right. He is operating in Hankou, in the old shop.

Han: The multi-storey building has taken back the operation license, is it still operating the same gym?

WR: Yes.

Han: Are all of you still working in the gym?

WR: Yes.

Han: Which Labour Bureau did you approach?

WR: We approached the Wuhan City Labour Bureau. They said that your company's main body is not operating any more. It is hard to pass on our documents to lower levels. Then we provided them with Hankou's address, they said they cannot control that as it is under another name - Alberta, not Work-Fitness.

Han: Is this what the Wuhan City Labour Bureau said?

WR: Yes, that's right.

Han: How many employees were owed salaries?

WR: A total of 109 employees, including financial affairs staff and cleaners. Those who are registered here with me sum up to a total of about 70 to 80 people, mostly university students. We are fresh university graduates. This is our first job.

Han: Just graduated from university?

WR: Yes.

Han: This is most staff's first job?

WR: He gathered everybody on 1 June and said he will return everyone's salaries on 10 June. In the end, on 10 June, no salary was given. He said he will go to court with Chongwen and the court session starts on 18 July.

Han: With this multi-storey building?

WR: Yes.

Han: This boss has a lawsuit dispute with the multi-storey building. Is he not operating the gym now?

WR: Yes.

Han: So this has affected your salary?

WR: Yes, he said at that time, "No matter if I win or lose, I will give out your salaries." I said, "You can also give it to us now!"

Han: What did he say then?

WR: He said he doesn't have the money. When some of us called him, he said, "If you want money, I don't have any. All I can give is my life." This is what he said.

Han: What did he say?

WR: "If you want money, I don't have any. All I can give is my life." This is what the boss told some of us who called him.

Han: Is the shop the boss owns in Hankou also a gym?

WR: Yes.

Han: Is it still operating?

WR: Yes.

Han: Is the boss leaving this multi-storey building and not operating Work-Fitness because he leaves personally, or is it the multi-storey building…

WR: The multi-storey building.

Han: The multi-storey building terminated the contract?

WR: Yes, because he operated against the rules, violating the contract. What they signed is a special development agreement.

Han: What did he violate?

WR: I'm not sure of the concrete details.

Han: Apart from approaching the labour bureau, did you consult lawyers for legal advice?

WR: Yes, lawyers have provided us with some advice. They told us to bring the case to court. I studied Law. I know that if the labour department rejected our complaint, we would have to provide evidence for rejection and then go to court again.

Han: Then did you go?

WR: No. They wanted us to arbitrate. All employees entrusted me to demand for our salaries back. I had to use my fingerprints to sign a document. They wanted us to go to Wuhan City Industrial and Commercial Bureau, to collect the company's files and materials, to make a copy for the labour bureau, and they want us to approach the boss to terminate the contracts. I said, "If he cannot provide us with a workplace, labour contracts were automatically terminated, there's no need for evidence. Moreover, we provided a declaration on the newspaper stating that the plaza and the boss have terminated their contract, proving the termination of contract with Work-Fitness. This proved that it cannot provide us with a workplace, so the labour contracts were automatically terminated."

Han: In the beginning, did all of you sign labour contracts with your boss?

WR: Yes, we signed it on 8 May.

Han: Did you sign it with the boss?

WR: With the boss of Work-Fitness, sealed with Wuhan Work-Ftiness Limited's stamp.

Han: Were you owed salaries the month you signed the contract?

WR: Yes.

Han: Did you receive your salaries before that?

WR: Yes, he used half of our April basic salary as labour technical training fee. Normally, we are given our salary on the tenth of every month. We were given our April salary on 10 May. Before he signed the contract with us on 8 May, he deducted half of our basic salary as labour technical training fee. In the end, he did not provide us with any training.

Han: Did you take your labour contracts signed on 8 May to the labour bureau?

WR: Yes, we photocopied every employee's contract and a deposit in security, so evidences were all present, and also our work attendance table.

Han: You said you read law?

WR: Yes.

Han: Did you just graduate from a law school?

WR: Yes.

Han: So what do you personally think? How should you reclaim your salaries?

WR: Legally speaking, if the Labour Bureau disregards the matter, it is useless to go to court. The court will tell you to go to the labour bureau. I went to the labour bureau, they dismissed the case. Then I called Wuhan mayor's hotline, the hotline sent an informal note to them.

Han: Wuhan mayor's hotline sent an informal note?

WR: Yes.

Han: To Who?

WR: To the Wuhan City Labour Bureau.

Han: Telling them to accept the case?

WR: Yes. Then the director of the labour bureau called me, told me to bring over our evidences, and took down in writing.

Han: When did you approach the labour bureau?

WR: He did not give out our salaries. We went on 11 June.

Han: What did the labour bureau say?

WR: When we went, he let us fill in a form, and then told us to go. On 13 June, the labour bureau called and told me to go over and clearly explain the concrete details of the case.

Han: Are you the representative of the 70 or so workers?

WR: Yes.

Han: What was the outcome of the visit on the 13 June?

WR: They took my statement down in writing and said they will investigate the matter. At that time, they said, "Your company main body does not exist now. Work-Fitness is not operating anymore."

Han: Didn't you say it is still operating?

WR: It is, but its name has changed. It is not called Work-Fitness now. It is now called Changjiang Chongwen Plaza Fitness Club.

Han: When did it change?

WR: From 22 May, there have been quarrels, since then, it never operated. After Chongwen got back the operation license, it was open for business again on 6 June. So it did not operate in the ten or so days between 22 to 6 June.

Han: So the multi-storey building got back the operation license?

WR: Yes.

Han: So how did the labour bureau solve your wage arrears problems?

WR: I went to the labour bureau last week, and then I did a sound recording.

Han: You recorded your conversation with the labour bureau?

WR: Yes.

Han: What did they say?

WR: They said they can't control the matter now unless the boss is still operating the business under the name of Work-Fitness.

Han: Then did you ask them what the labour bureau should do when a hundred of employees are owed salaries?

WR: A labour official said, "The labour bureau only targets on the employment unit called Work-Fitness. If this unit does not operate and does not exist, there is no way we can control it." We told them where the boss lives, where he operates his business. We can provide him with addresses and telephone numbers, but he said the law can't control it.

Han: The labour bureau takes an attitude of evasion?

WR: Yes.

Han: What are you preparing to do next?

WR: Some employees are extremely agitated, because the court case will start on 18 July.

Han: The lawsuit between the boss and the multi-storey building will start on 18 July?

WR: Yes, the boss promised us that he will give us our money after the litigation on 18 July. He made a lot of promises to us before but they never came true, now many employees do not trust him any more.

Han: You said he made a lot of promises. What promises were they?

WR: For example, he said he will give us half of the salary on 10 June, but he did not. We called him and he said he will give it to us after the litigation. He also said he will give us that money no matter if he loses or wins the case. After we pushed him, he said, "If you want money, I don't have any, but you can take my life."

Han: Is it with this attitude?

WR: Yes. Meet us, tell us clearly about the matter, or give us a bill in acknowledge of debt. He did not meet us.

Han: Did you go to his shop in Hankou?

WR: Yes, we've been there last week.

Han: How did you go? Did you go altogether or did a few representatives go?

WR: A few representatives, four or five.

Han: Were you able to find him?

WR: We found the address, but they said the boss is not here, that he is out.

Han: A total of 109 of you were owed salaries?

WR: Yes.

Han: What is the total sum owed?

WR: The sum is 150,000-200,000 yuan.

Han: What are the 109 of you doing now?

WR: Most of us are still working at the old site.

Han: Staying in the fitness club in the multi-storey building?

WR: Staying here makes us more unified and concentrated, we can easily discuss matters.

Han: Staying here and working for the company who operates in the end?

WR: Yes.

Han: Did you yourself stay to work here as well?

WR: Yes, I plan to resign after I have dealt with this matter.

Han: After dealing with this matter, you're resigning?

WR: Yes.

Next Saturday at the same time, please continue listening to my conversation with workers' representative Tao Jingjin.

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