Local labor authorities imposed a record fine of nearly 2 million yuan (US$240,000) earlier this week on a Hong Kong-funded processing factory for wage offences, reported the Guangzhou-based Southern Metropolis News.

Hai Yan Electronic Plant, a joint venture between Hong Kong-based Computime Ltd, one of Asia's leading providers of electronic design and manufacturing services, and two Guangdong companies, mainly processes electronic components and exports the products to the Unites States, European Union and Japan.

Workers complained that the company paid workers less than 610 yuan (US$74) a month, the base line set by the Minimum Salary Regulation of the Shenzhen Special Economic Zone.

The Shenzhen Labor and Social Security Bureau imposed the fine after a thorough investigation.

Yan Haiqiong, head of Han Yan Electric Plant, said the factory completely accepts the government's decision and the problems have been fixed.

"Currently, the average salary of our employees has reached about 900 yuan (US$109), we will never violate the law again," she pledged. 

(China Daily December 10, 2004)