Shopping Card Controversy in Zhengzhou, China
In Zhengzhou, China, employees' wages were converted into shopping cards usable only at New Land 360 Plaza’s Guomao Store, with strict spending limits and restricted usage to one day per month, sparking public outrage.
The recent wage payment controversy in Zhengzhou, China has garnered significant attention as workers discovered their salaries were converted into shopping cards with severe restrictions. These cards can only be used at New Land 360 Plaza’s Guomao Store location, with spending limited to a single day each month and purchases capped at modest amounts.
The scope of this unconventional payment system is substantial. Some workers report receiving cards worth tens of thousands or even hundreds of thousands of yuan. However, cardholders face strict limitations - they can only use the cards on the first day of each month, with individual transactions capped at around 2,000-3,000 yuan.
This practice violates multiple Chinese labor laws. Under both national regulations and Henan Province’s minimum wage standards, employers must pay wages in legal tender rather than goods or securities. The transformation of monetary compensation into restricted shopping cards effectively diminishes workers' purchasing power and financial freedom.
The Zhengzhou Commerce Bureau’s response has been particularly concerning. Rather than addressing the legality of substituting wages with shopping cards, officials merely promised to increase the number of participating stores. This approach suggests tacit acceptance of a practice that fundamentally undermines workers' rights.
The broader implications of this system are troubling. Workers cannot use these cards for essential expenses like rent, transportation, or education. The restricted usage and arbitrary spending limits force employees to make purchases at specific locations, often at inflated prices. This creates a closed economic loop that benefits select businesses while depriving workers of their rightful wages.
This situation reflects a concerning trend in wage payment practices. Similar incidents have occurred previously, such as failing businesses paying workers with their unsold inventory. These practices invariably disadvantage employees, who face significant challenges in converting such compensation into usable currency.
The shopping card scheme represents a sophisticated form of wage exploitation. By controlling where and when workers can spend their earnings, employers effectively create a captive consumer base while evading their legal obligation to pay wages in legal tender. This practice not only violates labor laws but also compromises workers' financial autonomy.
This controversy also highlights the importance of proper labor law enforcement and worker protection mechanisms in China. Without robust oversight and genuine consequences for violations, such exploitative practices may continue to emerge in different forms.