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Japanese watchmaker's mass layoff stirs China backlash fears

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GUANGZHOU/SHANGHAI - When Japanese wristwatch maker Citizen abruptly shuttered its watch-parts factory in the southeastern Chinese city of Guangzhou in early February, nearly 1,000 workers there lost their jobs.

The blunt nature of the closure, unusual for a Japanese company, sparked a backlash not only from Chinese people, but also from other Japanese businesses operating in China who fear the move may direct anger in their direction, too.

On Feb. 10, a dozen women upset about their sudden dismissal from Citizen gathered outside the factory. Although most of them had already agreed to cancel their employment contracts with Citizen Precision Guangzhou, a group company of Citizen Holdings, they were still mad about their treatment.

"Total shock"

The trouble started when the company issued a notice at 2 p.m. on Feb. 5 that read in part: "The factory will close tomorrow and all 1,000 employees will be dismissed the same day." The notice said if they did not sign a letter canceling their employment contracts, they would not be entitled to unemployment benefits.

The factory had been operating for 20 years, and its closure came as a surprise to many of those working there. One 35-year-old woman described it as a "total shock." Before the announcement, the atmosphere at the plant had been almost festive, with a large number of employees looking forward to returning to their hometowns for the coming Lunar New Year holidays. But their high spirits evaporated in an instant.

Read the full article here.


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