After the change of leadership, the construction team was "cleared", and the labor and equipment leasing fees have not been resolved. This made Mr. Li from Jiangsu worried.
Soon after raising funds to purchase equipment, I received a notice to "quit"
On March 28, Mr. Li told a reporter from Huashang Daily Gale News that working in a large enterprise needs to enter the construction enterprise library first, so they followed Xi'an Jingshui Construction Engineering Co., Ltd. and followed China Power Construction Road and Bridge Group Luonan Shilei Green New Materials Co., Ltd. (hereinafter referred to as China Power Construction Road and Bridge Luonan Company) three years ago to do labor.
Mr. Li said that this new material company is similar to stone processing. The construction began in June 2021, when the government and enterprises organized a groundbreaking ceremony, and he also organized dozens of workers to participate. In the same month, they entered the construction site of the sand and gravel aggregate production project according to the requirements, and the maximum number of labor personnel reached more than 30 people.
The site of the groundbreaking ceremony
As the amount of work increases, especially for stone mining, large excavators are needed for hard stone mountains. In order to be able to do these jobs, Mr. Li and several fellow villagers thought that PowerChina Road and Bridge Company was a large enterprise worthy of trust, so they decided to raise funds to purchase equipment. To this end, they went back to their hometown, borrowed money or loans, and invested more than 500 yuan to buy or lease a lot of equipment.
Mr. Li said that PowerChina Road and Bridge was the investor, and the general contractor was contracted by the Third Bureau of China Hydropower, and it was China Power Construction Road and Bridge that recruited them, earlier than the Third Bureau of China Hydropower.
In August 2021, they suddenly received a notice from the on-site personnel of the Third Bureau of China Hydropower (the general contractor of the construction), saying that now the road and bridge of China Power Construction (the investor) asked them to leave.
There must be a reason for the sudden change, and Mr. Li inquired only to know that Meng Mou, general manager of China Power Construction Road and Bridge Luonan Company, was replaced by Liu. After Liu took office, he asked the general contractor, China Hydropower Third Bureau, to notify Mr. Li's team to "clear the site".
Party:
Forced to reach an exit agreement, the money was not paid
The new leadership demanded to leave, which caught them off guard and put so much machinery and labor into trouble. Mr. Li and others kept reporting practical difficulties to the new leader Liu and asked to continue working, but to no avail.
In the case that there is really no way, the investor, the general contractor and the labor party sit together to negotiate: 1. The wages of all personnel entering the site will be compensated according to the number of attendees; 2. The cost of all materials purchased due to on-site construction shall be borne by China Power Construction Road and Bridge; 3. The cost of equipment entering and leaving the site shall be borne by Mr. Li; 4. All equipment entering the site shall be paid according to the monthly rent; 5. The personnel and equipment will leave the construction site after all the expenses are paid, otherwise the wages and equipment costs of the on-site personnel will be continuously settled on a monthly basis during the processing period.
Mr. Li said that although there was an oral agreement, when calculating the relevant expenses, PowerChina Road and Bridge did not pay these amounts, and later repeatedly urged the fees to China Power Construction Road and Bridge and China Hydropower Third Bureau to no avail.
Regarding the labor and machinery leasing costs, Mr. Li said that the investor and the general contractor have sent relevant official documents, but they have not been resolved. A reply letter provided by him to China Power Construction Road and Bridge Company issued by the Luonan Project of the Third Bureau of China Hydropower on the "Notice on Cleaning up the Site Occupied by the Early Team as Soon as Possible to Ensure the Realization of the Production Target on Schedule" shows that since the project started on June 19, 2021, it has successively achieved a number of major node tasks such as tunnel penetration, office building, and comprehensive building capping. Xi'an Jingshui Company entered the site to participate in the construction of the project. On June 5, 2021, the company entered the site, mainly undertaking the task of tunnel excavation support.
On July 27, 2021, PowerChina Road and Bridge notified the Third Bureau of China Hydropower to replace the subcontracting team of the tunnel project, and requested the Third Bureau of China Power to notify Xi'an Jingshui Company to withdraw from the site. Xi'an Jingshui Co., Ltd. started to withdraw, mainly completed the exit slope anchor of the aggregate conveying tunnel, slope shotcrete, as well as site leveling and safety protection, etc., with a cumulative output value of about 120,000 yuan. As of May 1, the team reported an exit fee of 5.2 million yuan (the equipment cost was increased month by month). The main expenses are: personnel wages of 1.675 million yuan (including wages during the shutdown period), office, leasing, vehicle use and other expenses of 310,000 yuan, materials and equipment transfer purchase costs of 915,000 yuan, equipment operation and stagnation loss costs of 2.3 million yuan. The payment deadline is November 30, 2022.
Mr. Li and his workers receive less than millions of dollars in labor and machinery lease fees for three years
Responses from interested parties:
There have been many consultations without reaching a result
Mr. Li said that in March 2023, PowerChina Road and Bridge organized personnel to forcibly tow their equipment away from the site. Since the start of construction on June 5, 2021, the salary has not been paid, and many families are living in difficulty. Moreover, they came to the site to do on-site construction and did not sign a formal contract.
Because of the change of leadership of China Power Construction Road and Bridge, they have reported in many ways that China Power Construction Road and Bridge was pushed to the general contractor China Hydropower Third Bureau, and China Hydropower Third Bureau said that it belonged to China Power Construction Road and Bridge and did not belong to their company.
On March 29, a reporter from Huashang Daily Gale News contacted Liu, the second general manager of China Power Construction Luqiao Luonan Company, and the other party introduced that Mr. Li's team was indeed recruited by his predecessor to work, and he asked them to quit for various reasons after taking office. After leaving, due to the cost of labor and machinery leasing, I negotiated many times, but no result was reached, and it was delayed until now.
Yao, the current general manager of PowerChina Road and Bridge Luonan Company, said on the phone that Mr. Li and his work were done with the Third Bureau of China Hydropower and had nothing to do with the Company of China Power Construction Road and Bridge, so there was no such thing as owing Mr. Li their labor fees and lease fees, and if so, it belonged to them and the Third Bureau of China Hydropower.
On March 30, a reporter from Huashang Daily Gale News contacted Li, the former person in charge of the Luonan project of the Third Bureau of China Hydropower. He introduced that China Power Construction Road and Bridge Luonan Company is the investor, and China Hydropower Third Bureau is the general contractor. However, Mr. Li's team came earlier than the Third Bureau of China Hydropower, and it was the team that came when the investment company China Power Construction Road and Bridge Luonan Company was first built, and it was also the company that notified Mr. Li's team to leave, so the relevant expenses incurred should be paid by China Power Construction Road and Bridge.
Lawyer's Statement:
PowerChina Road & Bridge has the obligation to fulfill the agreement in the exit agreement
Xiong Ruonan, a professional lawyer in the field of construction engineering at Kangda (Xi'an) Law Firm, said that if the exit agreement is legal and valid, Mr. Li can directly claim rights against the employer, China Power Construction Road and Bridge Company. The exit agreement signed between Mr. Li and PowerChina Road and Bridge Company should be signed and sealed by both parties, and have corresponding legal effect, which can prove the existence of a de facto labor/construction contract relationship between the two parties.
If Mr. Li has a direct contractual relationship with the employer, he can directly claim rights against the employer in accordance with the exit agreement, requiring PowerChina Road and Bridge Company to pay the salaries of the personnel, bear the material costs, and perform other obligations agreed in the exit agreement.
Xiong Ruonan introduced that PowerChina Road and Bridge Company did not obtain the ownership of the construction equipment involved in the case, and had no right to occupy and use the equipment, and the construction machinery was purchased or leased by Mr. Li, although the equipment was invested in the construction of the project involved in the case, the owner was still Mr. Li. In this case, PowerChina Road and Bridge Company, the employer has no right to forcibly occupy and use the relevant equipment, and its behavior is suspected of infringing on Mr. Li's legitimate rights and interests, and Mr. Li has the right to demand that the employer return the original goods and compensate for losses.
The lawyer suggests that a written labor and construction contract should be signed before entering the construction site, clarifying the rights and obligations between the two parties, and in the case that a written contract cannot be signed, a written exit agreement, settlement documents and other materials should be formed to prove the existence of a de facto labor and construction contract relationship between the two parties.
Huashang Daily Gale News reporter She Hui Editor Dong Lin
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