An electronics company in Pinghu of Longgang District had been fined 480,350 yuan (US$58,579) for underpaying workers and illegally extending their working hours, the Shenzhen Evening News reported.

It was the largest fine ever imposed by the Longgang District labor and social security bureau on an employer in the district.

The electronics company, named Rirongreng, manufactures electrical machinery and has 640 employees.

More than 500 of the workers went on strike in November 2004, protesting against low salaries, overwork and other unfair treatment.

The strike resulted in an investigation into working conditions at the factory by the district labor and social insurance bureau.

The bureau said the factory paid an average wage of 495 yuan to workers, but the company deducted 215 yuan from the 495 yuan every month, to cover accommodation and food they provided to employees, which ends up 200 yuan below the minimum wage of 480 yuan outside the special economic zone.

Some of the workers had even been paid as low as 280 to 350 yuan a month.

Workers were also asked to work overtime of up to 85 hours per worker per month, violating the national labor law, which requires the maximum overtime for a worker not to exceed 36 hours a month.

In addition, overtime payments were also less than the minimum required by law.

The bureau fined the factory 450,350 yuan for the illegal overtime and 30,000 yuan for paying low wages.

(Shenzhen Daily January 12, 2005)