Fourteen companies and six individuals have been blacklisted because they failed to pay wages they owed to migrant workers, China's human resources authority announced on Thursday.
As a result, the companies will face restrictions on such things as obtaining financing and will lose tax-reduction benefits. The individuals are prohibited from air travel and from booking first-class seats on bullet trains.
"Those 14 companies and six individuals will be punished not only by local human resources departments but also by other authorities," said Qiu Xiaoping, vice-minister of the Ministry of Human Resources and Social Security.
The most severe case involves a construction company based in Chongqing municipality that didn't pay 113 migrant workers 5.96 million yuan ($891,000) in wages.
Chen Hongwan, director of fiscal and financial affairs for the National Development and Reform Commission, said the default would be penalized in various ways, including a loss of government funds, financing, credit and tax reductions.
"For example, they will be barred as suppliers in government procurement, their allowance from governments will be suspended or canceled and related departments will impose restrictive measures when they apply for stock issuance, bank loans or other things," he said.
In September, the ministry introduced the blacklist regulation to punish companies or individuals failing to pay, or seriously delaying, migrant workers' salaries. The rule took effect this year.
In addition, 30 ministries and organizations, including the NDRC, People's Bank of China and China Railway Corp, agreed to jointly punish those on the blacklist. Reported by China Daily.