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BP in labor dispute after quitting solar business

By He Shan
0 Comment(s)Print E-mail China.org.cn, December 22, 2011
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An array of solar panels at a BP solar factory. [File photo]

BP's Chinese staff let go by the Britain oil company after it decided to shut down its solar business filed a demand for arbitration, claiming that the layoff process did not "comply with the rules."

Two arbitration panels separately in Guangzhou and Shanghai will make a joint ruling.

The layoff has affected ten people employed by BP China's solar unit, with four based in Guangzhou and six based in Shanghai.

BP has a joint venture, SunOasis Company Limited, with Xinjiang SunOasis Company Ltd. BP owns 49 percent of the company and the other party 51 percent. BP has not said whether it will withdraw its stake in the JV.

"The group was finding it difficult to sustain long-term returns for the division in the face of continued global economic uncertainty," said Mike Petrucci, chief executive of BP Solar, in an internal email.

The layoff process began as early as July in its Chinese unit. To its employers, it was already no secret that BP would abandon its solar business in the near future.

The staff complained that the process of layoff lacked transparency. Furthermore, they were unsatisfied with their severance packages and job placement assistance.

At the end of August, some staff who were laid off jointly sent a letter to Chen Liming, president of BP China, questioning the fairness and justification of the layoff and expressing disappointment at the way the company sacked its workers.

China's business press carried the story above on Thursday.

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