Photo/Shetuwang

Oct. 18 (NBD) -- More than 10 workers of U.S.-based electric vehicle startup Faraday Future (FF) in China applied for labor arbitration in Beijing on Wednesday, requesting salaries for the month from August 21 to September 20 that were expected to be paid out on Monday.

According to media reports, over 60 didn't receive their salaries. More will take legal actions to defend their interests.

According to two FF employees, as of June this year, FF's Chinese staff members have been asked to sign new labor contracts with three subsidiaries of Evergrande FF Intelligent Automotive (China) Group (Evergrande FF).

Later in August, Evergrande FF required FF's non-technical employees working in Beijing or other cities to move to southern China's Guangzhou, the location of Evergrande FF, and to sign contracts with the Guangzhou unit of the company.

It is noteworthy that the pay system was changed in the new contracts, under which 50 percent of the original salary will be offered as wages and the rest to be provided based on performance.

Over 60 employees refused to go to Guangzhou and take the new contracts, but Evergrande FF tried to change their mind through negotiation.

Soon, those workers found they have not received their salaries from their companies this month.

However, Evergrande FF stated it didn't stop paying wages to workers, explaining that those employees never signed any labor contract with the company, and salaries are set to be paid on 20th of every month. 

The arbitration came after a lawsuit against Evergrande FF filed by a former employee from Evergrande FF's Beijing unit.

The person claimed he was expelled from the subsidiary on October 8 for refusing to hand over the company's official seals and related documents to Evergrande FF.

In the filing, he held Evergrande FF has no right to fire him out because he didn't sign any labor contract with the company, and he hadn't received any instruction to hand over those stuff.

The disputes are extentions of the previous conflict between FF and Evergrande, which in nature is a scramble for the control of FF, a source close to FF once told NBD.

In June 2018, Evergrande Health announced its plan to purchase a 100 percent stake in Hong Kong-based Season Smart, indirectly gaining 45 percent of the shares in FF's parent company Smart King. 

As stipulated in an agreement signed with Smart King's other shareholder FF Top, Season Smart has to invest 2 billion U.S. dollars within three years in the joint venture. The company, pursuant to the agreement, has paid the 800 million U.S. dollars which was due by the end of this year.

Last Monday, however, FF Top commenced arbitration to terminate the deal with Season Smart alleging that the latter hasn't fulfilled its payment conditions.

Season Smart reportedly didn't make further investments after Smart King used up the initial investment of 800 million U.S. dollars and asked for additional 700 million U.S. dollars.

FF said in its statement Evergrande held the payment back to try to gain control of and ownership over FF China and all of FF's IP.

NBD noticed that FF Top, which only has a 33 percent equity interest of Smart King, now occupies majority seats in the board of directors. But according to an agreement signed in July, FF Top should transfer its voting rights to Season Smart if the FF91 failed to be mass produced this year and delivered in 2019. 

Email: zhanglingxiao@nbd.com.cn