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900 DSC employees demand unpaid wages

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DSC founder Hui Ming Shun has gone missing after the retailer folded on Monday, leaving behind 900 helpless employees and 100 million dollar in debt.

The financially distressed furniture and electrical appliance retailer folded all its 14 stores across the city on Monday had yet to pay the July salary for employees.

In additional to 10 million unpaid wages, DSC also owed rent and bills to suppliers.  It is estimated that DSC’s debt is at 100 million dollars.

Yesterday about 200 DSC employees attended a meeting  with Labour Department representatives at the office of the Federation of Trade Unions, which was assisting them.

“If there is evidence that proves the boss of DSC deliberately does not pay his staff, we will seek advice from the Department of Justice to consider a criminal prosecution,” says the department’s  senior labour officer, Grace Chan Wing Han.

Lawmaker Aron Kwok Wai Keung of Federation of Trade Unions who were assisting the workers condemned DSC as a heartless boss.  “How DSC had handled the situation is totally inhumane.

The management hosted sales at various outlets for cash and then close  down all of a sudden, refusing to pay wages to employees,”he said.

Hui Ming Shun, winner of the World Outstanding Chinese Awards in 2008 founded DSC in 1997. After the news of DSC closing down broke out, a number of suppliers from mainland China rushed to Hui’s home in Kowloon Tong on Monday night in hope of collecting debt, only to found he and his  family had left the premises. Their whereabouts is unknown.

An employee surname Law said since last week said on several occasions suppliers has refused  to send goods because the company was not able to pay the bill.  As a result he had not receive any omission for months because suppliers refuse to deliver goods.

Commenting on the company hosting sales last week,  he said it is not the first time management had tried to get cash by hosting fire sales but this time things did not work out.  He also noticed last week, stores are only willing to accept cash and store managers took away the cash every night after closing.

As of Monday night, the Labour Department said more than 200 DSC employees had sought help from them.The department was seeking to meet their employer and would help staff members who were owed wages apply for ex gratia payment from the Protection of Wages on Insolvency Fund if the company was unable to pay them.

On Sunday the company quietly revealed its closure by posting notices at some of its branches.

“Because of operational difficulties, [DSC] has run into serious financial problems,” the statement read.

Image: Shutterstock

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