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    Sinopacific defends itself against "unfounded" rumours

    News // September 23, 2015

    Sinopacific Shipyard in China, one of the largest builders of OSVs in the world has issued a statement about what it says are unfounded rumours about the company.

    The statement reads as follows: "Recently, attention has been drawn to an incident relating to Sinopacific Dayang Shipyard, which is a subsidy of the Sinopacific Shipbuilding Group. Sinopacific has noted that certain rumours based on inaccurate and unverified information have been reported as fact. Sinopacific would therefore like to release the following statement and reserves the right to take any legal actions it may deem necessary.

    "On the morning of 17 September it was reported that subcontracted workers held a rally in front of Dayang Shipyard to claim for unpaid wages. In reality, all workers’ wages for the past months had already been paid in full, while those due for August were delayed for a few days without advance notice, due to the group’s recent equity restructuring and adjustments of inner management procedures."

    Sinopacific said some workers protested "after taking rumours as truth" that the company was unable to pay their wages. "After full communication with the group’s senior management on site, the actuall situation was clarified and the rally quickly dispersed. Wages due were paid in full the following day," said the company.

    "Traditionally, the agreements between Dayang and the labour service companies cover the settlement of payments on a two monthly basis; the wages of subcontracted labour workers are then paid by their direct employer, under supervision of both the labour service company and Dayang.

    "In August 2013 a local labour management model was adopted by Sinopacific under which workers’ wages are paid directly and fully by Dayang via bank transfer to their accounts each month. This policy, which aims to guarantee the legal rights of workers, has been in place for over two years.

    "This recent incident has raised the company’s awareness that in the current context of the shipbuilding industry, whereby growth is sluggish, there is a general concern among labour service companies and workers that wages cannot be paid as scheduled. Therefore, going forward, the company shall ensure that communication with its workforce is reinforced and that payments of workers’ wages are always carried out timely to avoid unnecessary misunderstandings.

    "Recent years have witnessed a sustained slump in the shipbuilding industry and Sinopacific has retained a leading position in various market segments, through its Crown brand of bulk carriers and SP brand for OSVs, with plans to extend business to new market sectors," the yard said. "In the first half of 2015, Sinopacific delivered 17 vessels in total and achieved an output value of RMB 3.254 billion. At the end of June, the company held an orderbook of 84 vessels and plans to deliver 45 vessels in total this year. The total output value for 2015 will be 15 per cent higher than the previous year."

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