Major casualties in Anyang fire; company that didn't pay social insurance to compensate

[4] Compiled from: Red Star News
 
Case review
At 16:22 on November 21, a fire broke out at the factory of Kaixinda Trading Co., Ltd. in Anyang City, Henan Province. As of 10:00 a.m. on November 22, the search and rescue operation at the fire at Kaixinda Trading Co., Ltd. in Anyang has essentially concluded. Verification confirms that 38 people tragically lost their lives (including the 2 previously unaccounted for).

 
 

The command center's preliminary assessment indicates that the accident was caused by unauthorized operations by company personnel, with welding sparks igniting the fire. The company involved in the fire accident on November 21, Kaixinda Trading Co., Ltd., is primarily engaged in the wholesale business. The first floor of the factory building where the incident occurred was used as a warehouse, and the second floor as a garment processing area. The company was in normal production at the time.
 
It is worth noting that from 2016 to 2021, the company involved had zero employees enrolled in work-related injury insurance and other social insurance programs.

 
 

 
Regulations on Work-Related Injury Insurance
Article 62
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If an employee of an employer that should have participated in work-related injury insurance according to these regulations but has not done so suffers a work-related injury, the employer shall pay the expenses in accordance with the items and standards of work-related injury insurance benefits specified in these regulations.
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[1] The author's perspective
In production and business operations, labor costs represent a significant expense, including total employee wages, social insurance contributions, employee welfare expenses, and more.  Because some employees lack relevant legal knowledge, or consider social insurance optional, or believe that not paying social insurance means more take-home pay for the month, some enterprises “exploit these loopholes”; moreover, some enterprises blatantly violate the law by refusing to pay social insurance for their employees. The occurrence of this incident serves as a bloody lesson for these enterprises.

The preliminary investigation into the Anyang fire has determined that it was a major incident causing significant casualties, triggered by unauthorized welding operations conducted by enterprise personnel. Because social insurance had not been paid, the individuals who died in the fire, while meeting the criteria for work-related injury recognition, should have their expenses paid by the enterprise in accordance with the items and standards of work-related injury insurance benefits. The enterprise not only faces substantial compensation but also has relevant responsible persons suspected of criminal offenses. Therefore, enterprises must not only safeguard employees’ rights and pay social insurance, but also firmly bear in mind in production and operations that “human life is paramount,” implement safety and security measures, and effectively protect employees’ personal and property safety.