Owner receives $1M compensation after factory demolition, shares it with 400 staff

Guo Chongzhi, 70, from Chongqing City in central China, previously served as the director of the Chongqing General Valve Factory. This factory, founded in 1971, once employed over 400 workers at its height.

However, due to economic difficulties, the factory was shut down in 2000, and in 2018, the building was demolished as part of the city’s land acquisition plan, The Star reported.

In March last year, Guo received 7.7 million yuan as compensation for the demolition of the factory building.

He decided to share the sum with all 406 employees who used to work at the factory, even the families of those who had died – 35% for employees who had resigned or died, and 65% for those who had been working until the factory’’ shutdown, The Star reported.

He spent more than a year to track down all of his former employees.

So far, 371 employees and their families have received the money.

“That period was extremely stressful,” Guo told Chongqing Daily News.

“I almost had insomnia every night, waking up after just an hour of sleep. I lost about 3 kg in a fortnight.”

One employee, Wen Zhihong, who had resigned and was terminally ill, received the money shortly before her passing.

“My mother had cancer and could no longer speak. My father brought the cash to her hospital bed to ease her mind. She passed away a few days after seeing the compensation. Our family is really grateful to Director Guo,” her son told the South China Morning Post.

There is now more than 300,000 yuan left in compensation for the 35 employees who have not yet been contacted.

Guo is asking for help to track down those employees on social media, and his story has become viral, with many praising him for being such a noble and honest man.