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Chitchat Slavery with Chinese Tech Companies

Pinkieslut

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Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes Lawyers allege Chinese tech companies abuse laws intended to apply to top executives when they pursue low-level workers leaving for rivals PDD’s Temu app offering cut-price goods from Chinese manufacturers has become wildly popular in the west © REUTERS




Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes on x (opens in a new window) Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes on facebook (opens in a new window) Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes on linkedin (opens in a new window) Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes on whatsapp (opens in a new window) Save Nian Liu and Ryan McMorrow in Beijing 7 HOURS AGO 21 Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. After graduating from a Shanghai university in 2022, self-described introvert Yao joined the grocery operations of the city’s fastest-rising tech giant, Pinduoduo. A year later, he found himself losing his hair, one sign of the stress of his entry-level job, and decided to find work elsewhere. Soon after leaving, he was put under surveillance by Pinduoduo. A subsequent labour arbitration case means he now owes the Chinese tech giant around double the amount he earned during his year of working there. Yao is one of at least a dozen former Pinduoduo employees who have found themselves trapped by non-compete agreements they claim they were required to sign. Chinese labour lawyers say some domestic tech companies have turned to abusing such contracts to discourage even the lowest level employees from leaving for rivals. Through interviews and court records, the Financial Times has reviewed 10 ex-employees’ cases. They suggest Pinduoduo has repeatedly used surveillance on former workers who leave for rivals and then lawsuits to enforce non-competes and stifle competition. Many of the cases involve low-level employees. Some like Yao were just recent university graduates. The practice highlights the fiercely competitive tech environment in China and the underhand tactics that management teams can use at times to lower costs and reduce turnover. The use of non-compete clauses has been under growing scrutiny by governments around the world for their role in stifling wage growth, productivity and reducing new business creation. The UK is pushing towards adding restrictions to employers’ ability to use them. The US is considering banning them altogether, and some experts cite California’s refusal to enforce non-competes as helping to foster the rise of Silicon Valley’s tech industry. But in China, there has been little pushback to companies’ increasing use of them, with courts generally siding with employers due to the existing laws. Pinduoduo’s practices call into question the ethics of a company that is expanding globally by selling cut-rate Chinese goods through its Temu app. In recent months, its owner PDD Holdings, which is listed in New York, briefly traded places with Alibaba as China’s most valuable ecommerce company. Pinduoduo told the FT that only a small proportion of departing employees, who are close to the company’s core commercial secrets, enter into non-compete agreements, which are “signed willingly by both parties following amicable discussions”. Pinduoduo added it took legal action as a last resort and that the number of non-compete cases that the company has initiated is very small compared with the number of employees who have left, and fewer than other companies’. In China, the company is known for its high pay but gruelling hours. Yao, 24, said he often worked seven days a week, 14 hours a day, pricing vegetables and planning events with suppliers to market their hot deals on products such as potatoes and tomatoes on Pinduoduo. After a year, he could take it no longer and left. “At the time, people were leaving every week. They use non-competes as a deterrent. But in fact, there are no trade secrets that we in this position know of at all,” he said. Pinduoduo’s agreements typically provide for months or years of gardening leave at 30 per cent of base pay. Chen Yi, a labour lawyer at SGLA Law Firm, said it was the legal minimum and that the threshold was originally intended to compensate high-earning executives “so even with just 30 per cent, their incomes remain relatively high”. “But now non-compete agreements are being abused,” she said. Yao’s agreement prohibited him from working for rivals for nine months, during which time he would receive Rmb3,700 ($513) a month. It was too little to live on, Yao said. A few months after starting a new job, in November 2023, he received a summons for a Shanghai labour arbitration case. Pinduoduo had submitted video evidence of Yao walking in and out of a rival’s office for a week. Last month, the arbitrator ruled in Pinduoduo’s favour, ordering Yao to pay his former company damages, lawyers’ fees, and return the Rmb11,000 he had earned in gardening leave pay. Altogether he owes Pinduoduo Rmb438,000 ($61,000). “It’s a fatal blow, I make just more than 100k [$14,000] a year, so even with being thrifty it’s going to take more than four years to pay off,” he said. “My parents are farmers; they don’t have any money. I don’t dare tell them about it.” Yao is contesting the judgment in court and so has asked for his full name not to be used. Chinese law stipulates that non-compete agreements can only be applied to personnel in senior management or senior technical roles, but also includes a clause covering “those with confidentiality obligations”, which lawyers say internet companies have exploited. Many companies ask all their employees to sign non-compete agreements when they start working. “Employees are in a weak position. If the company demands certain procedures to be signed, the employee has no choice but to comply,” said Ke Weiwen, Shanghai-based labour lawyer at Joint-Win Partners. Court records and interviews show Pinduoduo has regularly had former employees tailed and filmed in order to prove in court that they have joined a competitor. Luo Xiaohui, a 38-year-old logistics expert, was required to sign a detailed two-year non-compete when he left the company, despite spending less than a year at Pinduoduo. At trial, the company presented videos showing Luo entering and leaving delivery service Meituan’s Beijing offices over a two-week period. In another example, 33-year-old Yang Yang was caught by video showing him riding his electric bike to rival Kuaishou’s office, then parking and entering the building “for seven consecutive work days”. Guo Fang, 27, faced videos and pictures showing her entering a competitor’s office. Aaron, a former mid-level corporate communications staffer, said Pinduoduo hired a team of private investigators to stalk him after he left. “They’d follow me from my home, from when I went out in the morning . . . all the way to where I work, and take videos of me entering the building,” he said. Yao said he had not realised he was under surveillance until he saw the videos submitted into evidence. “That Pinduoduo would actually secretly film a low-level employee — I honestly couldn’t believe it,” he said. Pinduoduo said the company had not “engaged in illegal surveillance” of former employees and that evidence it had presented in courts was obtained legally. Last month, a group of 10 former Pinduoduo employees began posting on social media about their situation. Many of their posts have been deleted by censors. One former employee was brought into a police station in the Changning district of Shanghai, where Pinduoduo’s offices are based, and questioned about his activities. He subsequently deleted some of his social media posts and wrote on Weibo: “Us labourers love the party, love the nation and love the people.” The group’s social media posts have also highlighted the inconsistency of Pinduoduo’s practices, which have included hiring Chinese regulators despite rules that say officials cannot join firms under their regulatory purview for at least two years after leaving government. Recommended The Big Read The mysterious rise of the Chinese ecommerce giant behind Temu In one example, Wen Xue, an official at China’s antitrust agency until late 2019, became a vice-president at Pinduoduo in mid-2020. In another, Xu Mintao moved to head Pinduoduo’s government relations team within roughly a year of working at Shanghai’s municipal market regulator. Pinduoduo said that Wen and Xu strictly followed the approval procedures for resigning officials and that their government units had approved of their departure and future employment with Pinduoduo. One recent graduate said her life had been turned completely upside down by the large debt owed to Pinduoduo for violating a non-compete. “There’s no hope for my life,” she said on the Weibo social media service last month. “If I’m gone, will Pinduoduo give up, or will my parents need to pay off my debt.”
 
For those of you who think this is just a CCP thing or recent phenomenon... learn your history of China, and read up on how the Great Wall of China was built. :cool:
 
FistsUnchained doesn't care about female virtues. In today's society, the issue of protecting the rights and interests of workers is receiving increasing attention from the public. Recently, a former Pinduoduo (PDD) employee named "草娃" faced immense pressure from the company's claim of 280,000 yuan. In despair, she uttered these words: "Even if I die, maybe PDD won't come after my parents for money." The controversy surrounding a former PDD employee's non-compete dispute has attracted attention. On March 6, 2024, a post from Weibo user "草娃故事" sparked widespread social concern. The user shared her experience as a former PDD employee who, after complying with the non-compete clause, was claimed 280,000 yuan by the company for violating the agreement. This incident has sparked heated discussions online and raised questions about the labor environment in Chinese internet companies. The non-compete clause controversy arises. 草娃, a girl born in a rural area of Jiangxi in 1999, joined PDD in July 2022 as a procurement and sales specialist after graduating from university. After working at the company for 8 months, her health deteriorated due to long working hours, leading her to resign. Upon resignation, she was forced to comply with a 9-month non-compete clause by the company and received a monthly compensation of 2,400 yuan. However, after receiving compensation for 6 months, 草娃 received a labor arbitration application initiated by PDD, demanding payment of 280,000 yuan in compensation. Confusion under the legal framework. As a recent graduate, 草娃 expressed shock and confusion about the sudden claim.

From FistsUnchained, it's reported that in today's society, the issue of protecting workers' rights is receiving increasing attention from the public. Recently, a former Pinduoduo (PDD) employee named "草娃" faced immense pressure from the company to pay back 280,000 yuan, leading to a desperate statement: "Even if I die, maybe PDD won't go after my parents for money."

Former PDD Employee's Non-compete Dispute Draws Attention

On March 6, 2024, a post from Weibo user "草娃故事" sparked widespread social concern. The user shared their experience as a former PDD employee who, after complying with a non-compete clause, was sued by the company for 280,000 yuan for alleged breach of contract. This incident has stirred discussions online and raised questions about the working environment in Chinese internet companies.
b54262e94d2781981c2c3cbe9fcafd56

Dispute Arising from Non-compete Clause​

"草娃," a girl born in a rural area of Jiangxi in 1999, joined PDD in July 2022 after graduating from university, working as a procurement and sales specialist. After 8 months of work, her health suffered due to long working hours, leading her to resign.
Upon resignation, she was subjected to a 9-month non-compete clause by the company and received a monthly compensation of 2400 yuan.
However, after receiving compensation for 6 months, she received a labor arbitration application from PDD, demanding a payment of 280,000 yuan.
4fa5ed75ecc11ed280d72192dc47f176

Confusion within Legal Framework​

"草娃" expressed shock and confusion as a recent graduate facing this unexpected claim. In seeking legal assistance, she attempted to settle with the company by offering to pay 50,000 yuan in compensation, but her offer was rejected. An arbitrator in Changning, Shanghai, pointed out that "50,000 yuan is not acceptable in Shanghai," and the arbitration decision still stood at 280,000 yuan. Helpless, "草娃" had no choice but to pursue legal action.

Public Attention and Discussion​

Following the escalation of the incident, "草娃" tried to voice her concerns on various social media platforms but faced complaints, post deletions, and account suspensions. Her Weibo post attracted widespread attention, with many netizens expressing outrage at her situation, while others raised questions and criticisms.The Grass Doll confessed that in the face of pressure and despair, he once had suicidal thoughts.
62b5d06666ff92d694dc300fd91367e1
4c189589668c06dd70da7a26d5c242d9

68ef4728bf4953cba6bf1446c791b849

Advocating for Labor Rights Protection​

This incident reflects the helplessness of workers when facing immense corporate power, as well as potential loopholes in labor laws in practical implementation.
The Grass Doll's experience has sparked public concern for the protection of workers' rights, prompting people to consider how to balance the operational needs of businesses with the personal rights of employees. Currently, this incident is still unfolding, and society is hopeful for a fair and reasonable resolution that brings hope to the Grass Doll and other workers who may face similar situations.
 
FistsUnchained doesn't care about female virtues. In today's society, the issue of protecting the rights and interests of workers is receiving increasing attention from the public. Recently, a former Pinduoduo (PDD) employee named "草娃" faced immense pressure from the company's claim of 280,000 yuan. In despair, she uttered these words: "Even if I die, maybe PDD won't come after my parents for money." The controversy surrounding a former PDD employee's non-compete dispute has attracted attention. On March 6, 2024, a post from Weibo user "草娃故事" sparked widespread social concern. The user shared her experience as a former PDD employee who, after complying with the non-compete clause, was claimed 280,000 yuan by the company for violating the agreement. This incident has sparked heated discussions online and raised questions about the labor environment in Chinese internet companies. The non-compete clause controversy arises. 草娃, a girl born in a rural area of Jiangxi in 1999, joined PDD in July 2022 as a procurement and sales specialist after graduating from university. After working at the company for 8 months, her health deteriorated due to long working hours, leading her to resign. Upon resignation, she was forced to comply with a 9-month non-compete clause by the company and received a monthly compensation of 2,400 yuan. However, after receiving compensation for 6 months, 草娃 received a labor arbitration application initiated by PDD, demanding payment of 280,000 yuan in compensation. Confusion under the legal framework. As a recent graduate, 草娃 expressed shock and confusion about the sudden claim.

From FistsUnchained, it's reported that in today's society, the issue of protecting workers' rights is receiving increasing attention from the public. Recently, a former Pinduoduo (PDD) employee named "草娃" faced immense pressure from the company to pay back 280,000 yuan, leading to a desperate statement: "Even if I die, maybe PDD won't go after my parents for money."

Former PDD Employee's Non-compete Dispute Draws Attention

On March 6, 2024, a post from Weibo user "草娃故事" sparked widespread social concern. The user shared their experience as a former PDD employee who, after complying with a non-compete clause, was sued by the company for 280,000 yuan for alleged breach of contract. This incident has stirred discussions online and raised questions about the working environment in Chinese internet companies.
b54262e94d2781981c2c3cbe9fcafd56

Dispute Arising from Non-compete Clause​

"草娃," a girl born in a rural area of Jiangxi in 1999, joined PDD in July 2022 after graduating from university, working as a procurement and sales specialist. After 8 months of work, her health suffered due to long working hours, leading her to resign.
Upon resignation, she was subjected to a 9-month non-compete clause by the company and received a monthly compensation of 2400 yuan.
However, after receiving compensation for 6 months, she received a labor arbitration application from PDD, demanding a payment of 280,000 yuan.
4fa5ed75ecc11ed280d72192dc47f176

Confusion within Legal Framework​

"草娃" expressed shock and confusion as a recent graduate facing this unexpected claim. In seeking legal assistance, she attempted to settle with the company by offering to pay 50,000 yuan in compensation, but her offer was rejected. An arbitrator in Changning, Shanghai, pointed out that "50,000 yuan is not acceptable in Shanghai," and the arbitration decision still stood at 280,000 yuan. Helpless, "草娃" had no choice but to pursue legal action.

Public Attention and Discussion​

Following the escalation of the incident, "草娃" tried to voice her concerns on various social media platforms but faced complaints, post deletions, and account suspensions. Her Weibo post attracted widespread attention, with many netizens expressing outrage at her situation, while others raised questions and criticisms.The Grass Doll confessed that in the face of pressure and despair, he once had suicidal thoughts.
62b5d06666ff92d694dc300fd91367e1
4c189589668c06dd70da7a26d5c242d9

68ef4728bf4953cba6bf1446c791b849

Advocating for Labor Rights Protection​

This incident reflects the helplessness of workers when facing immense corporate power, as well as potential loopholes in labor laws in practical implementation.
The Grass Doll's experience has sparked public concern for the protection of workers' rights, prompting people to consider how to balance the operational needs of businesses with the personal rights of employees. Currently, this incident is still unfolding, and society is hopeful for a fair and reasonable resolution that brings hope to the Grass Doll and other workers who may face similar situations.
Labor rights in dictator? Even japan sucks at that. Retarded chinks
 
For those of you who think this is just a CCP thing or recent phenomenon... learn your history of China, and read up on how the Great Wall of China was built. :cool:
You mean they built the biggest concentration camp ever? Not a defensive wall?
 
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