[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 on November 22, the search and rescue operations for the fire at Kaixinda Trading Co., Ltd. in Anyang have basically concluded. Verification shows that 38 people tragically lost their lives (including the 2 previously missing).

 
 

Preliminary assessments by the command center indicate that the accident was caused by illegal operations by company personnel, with welding sparks igniting the fire. The involved company, Kaixinda Trading Co., Ltd., which caught fire on November 21, is primarily engaged in the wholesale industry. The first floor of the incident factory was used as a warehouse, and the second floor as a clothing processing area, with the company operating normally at the time.
 
Notably, from 2016 to 2021, the number of employees enrolled in work injury insurance and other social insurance contributions at the involved company was zero.

 
 

 
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 are a significant expense, including total employee wages, social insurance costs, and employee welfare expenses. Due to some employees lacking relevant legal knowledge, or considering social insurance optional, or believing that not paying social insurance results in higher take-home pay for the month, some companies have exploited loopholes. Moreover, some companies blatantly violate the law by refusing to pay social insurance for their employees. The occurrence of this incident serves as a stark lesson for these companies.

The Anyang fire was preliminarily determined to be a major casualty incident caused by illegal welding operations by company personnel. Since social insurance was not paid, those who died in the fire and meet the criteria for work-related injury recognition should have the expenses paid by the company in accordance with the items and standards of work-related injury insurance benefits. The company not only faces huge compensation but also the relevant responsible persons are suspected of criminal offenses. Therefore, companies must not only protect employee rights and pay social insurance but also firmly remember that "human life is paramount" in production and operations, implement safety measures, and effectively protect employees' personal and property safety.