It is not desirable for employees to engage in such a game with their employers.

by chomeyudream on 2011-05-23 17:26:08

Sina Technology News - On the evening of May 22, with employees laid off from Koovision (酷6网) planning a collective appeal, the controversy surrounding Koovision's layoffs has escalated once again. More than a hundred employees, both those who have been laid off and those still employed, communicated with the media regarding issues such as sales commissions, the layoff process, and unpaid social security contributions. Subsequently, Yu Peng, Koovision’s Human Resources Director, responded. However, the two sides remain at odds over the focal points of contention.

### Focal Point One: Whether there was communication during the layoff process

#### Laid-off Employees’ Account:

According to Li Xin, a laid-off employee from Koovision, on the morning of May 20, they received a text message stating that they must sign a termination agreement by 4 PM or their contracts would be unilaterally terminated. Li Xin’s department then hoped to negotiate with Yu Peng. However, according to Li Xin, Yu Peng’s team did not cooperate and instead spent time giving interviews to the media, thus delaying any negotiations until after 4 PM. By 5 PM, when negotiations finally began, the employees received a second text message notifying them that their employment contracts had been unilaterally terminated, with documents being sent via EMS courier service.

#### Yu Peng’s Response:

We have always sought channels to communicate and resolve issues with our employees. Due to recent incidents, including some employees spreading rumors, we have been unable to establish normal communication channels. For instance, during my phone call with the laid-off employees on the evening of the 18th, they promised to come and discuss matters with me but never showed up. I have been in the office and could not have been unreachable. We have different colleagues trying to communicate with the employees, but it has been difficult to find them.

Between the 18th and 20th, certain senior executives caused unrest within the team, leading to confrontation and conflict between company employees and us. Despite this, the HR department has actively communicated with the employees. In Beijing alone, we have contacted 40-50 employees, and nearly 20 have signed agreements. We hope everyone will carefully consider the situation, and we continue to keep the communication channels open. We even had colleagues communicating and negotiating with employees this afternoon.

### Focal Point Two: Whether the company has withheld employees' social security and other benefits

#### Laid-off and Currently Employed Employees:

According to on-site employees, since December last year, the numbers for social security and medical insurance have not changed. Some employees even pulled out their personal social security records for the media to review. Since being acquired by Shanda, either the social security contributions were paid half-yearly or were missed altogether. Additionally, while housing funds were shown on the payroll, upon checking with relevant departments, they were found to be non-existent.

#### Yu Peng’s Response:

Before Shanda took control of Koovision, social security was paid according to the minimum standard. After Shanda took over, full payments were made. Previously, Koovision's monthly social security base was around 100,000 to 120,000 RMB, but now the amount paid to the Social Security Bureau is over one million RMB per month. In March of this year, we discovered that there were previous instances of missed payments. The HR department has been working hard to make up these payments since then. Although the amounts have been made up, they have not yet been credited to the accounts, which will happen by mid-June. This issue is unrelated to the layoffs, and we can provide payment slips to the Social Security Bureau. We will also release an official statement regarding this matter shortly.

### Focal Point Three: Is it illegal to conduct large-scale layoffs without filing?

#### Laid-off and Currently Employed Employees:

On May 20, many employees already received text messages terminating their labor contracts. Today, more employees have started receiving formal termination letters via EMS courier. They believe that during the termination of their contracts, Koovision did not file with the labor department 30 days in advance, thus涉嫌违法裁员(suspected of illegal layoffs).

#### Yu Peng’s Response:

We have already filed with the Labor Bureau on the 19th. We will comply with the regulations and carry out the layoff actions after 30 days. There may be some minor flaws, but we will seek guidance from the labor department to ensure compliance.

### Focal Point Four: How to respond to employees' collective legal action

#### Laid-off and Currently Employed Employees:

Not only did the laid-off employees attend today’s communication meeting, but many currently employed staff also spoke out in support. They expressed uncertainty about why they were retained and when they might be laid off next, leaving them feeling insecure. They stated that they would collectively initiate legal proceedings regarding this matter.

#### Yu Peng’s Response:

We do not wish for employees to use this method to challenge the company. We hope employees will protect their rights through reasonable means. Ultimately, we still hope to communicate and negotiate with the employees. Regarding certain individuals who spread rumors and cause trouble, we will not compromise.

(Cui Xi)