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Chinese Workers Demand Back Pay from Struggling Indian Budget Hotel Operator

By Zhang Erchi and Mo Yelin / Mar 12, 2020 03:24 PM / Business & Tech

More than 20 former employees of Oyo, an Indian budget hotel former highflyer that has fallen on hard times, have flocked to its China headquarters in Shanghai to demand back pay they say they were owed.

They arrived from across the country and held meetings with Oyo China’s representatives at its headquarters in Shanghai on Monday and Tuesday, Caxin has learned.

Their dispute centered on performance bonuses that make up the majority of many workers’ paychecks. One told Caixin he was laid off on Dec. 31 and received his basic salary of 2,500 yuan ($359) for the month. However, he said the company failed to pay a potential performance bonus of between 10,000 yuan and 100,000 yuan. It also paid only 40% of his performance bonus for the previous month, he said.

An agreement was eventually reached after two days of negotiations, Caixin has learned. Under the confidential arrangement, Oyo has committed to pay the employees’ performance bonuses on March 16.

But there are still questions over whether Oyo will attempt to renege on the deal. In a written response to Caixin, Oyo said employees’ performance bonus are linked to the amount of “qualified and verified” hotels they have signed up and the company is currently “reviewing their past work performance.”

The dispute comes as Oyo falls on tougher times following a rapid rise in both India and China. Bloomberg previously reported the company was firing thousands of staff across both countries. In January the company has let go of 5% of its 12,000 employees in China partly due to non-performance, while dismissing 12% of its 10,000 staff in India, Bloomberg said, citing unnamed sources.

Read the full story on Caixin Global later.

Contact reporter Mo Yelin (yelinmo@caixin.com)

Related: SoftBank-Backed Oyo Firing Thousands Across China and India


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