Shanghai Husi sacks hundreds over food scandal

OSI (China) Group’s Shanghai facility will dismiss more than 300 employees as it does not expect to resume operations soon as the authorities continue their investigation into a food safety scandal that rocked the company and its clients during the summer.

OSI (China) said in an e-mailed statement today that the local government and the trade union had reviewed the “worker redundancy plan” at Shanghai Husi Food, adding affected workers had been advised of their options.

Most of Shanghai Husi’s employees have been on paid leave since the food safety scandal first broke on July 21.

Shanghai Husi will dismiss 340 workers, including 226 directly employed by Shanghai Husi along with 114 contractors. A small number of staff would be retained in order to assist with the ongoing food safety investigation.

“Shanghai Husi has experienced significant financial and customer losses and the ongoing investigation means it is very unlikely that production will resume soon,” the statement said.

OSI added that it is working closely with government agencies to ensure that severance payments will be made to those workers in accordance with applicable laws, as well as company policies.

At the end of August, Shanghai prosecutors approved the arrests of six Shanghai Husi Food Co executives over the safety scandal that shocked famous fast-food chains such as McDonald’s and KFC.