What’s new: Complaints of delayed salary and benefit payments to bus drivers in Tianjin sparked concerns over the public transport system’s financial health in the city of 13.6 million people near Beijing.
Employees of Tianjin Transportation Group, which operates the city’s bus system, filed complaints online in recent months about delayed payments, drawing wide public attention. An employee told Caixin that the company missed salary payments to bus drivers and other staffers since June. It also suspended social welfare payments since August, the person said.
Bus drivers in Tianjin are paid 5,000 yuan to 6,000 yuan ($686 to $823) a month, while staffers in other departments earn less, according to the employee. A driver told Caixin that the transit system suspended overtime pay and high-temperature bonuses for the summer season.
The company “noticed this issue, and the leaders are very concerned,” a company representative said in response to questions from Caixin. “We will strive to make the payments as soon as possible.”
Bus service in Tianjin has remained normal. Several employees of Tianjin Transportation told Caixin that they received salaries for June late Tuesday, but it is unclear when remaining payments will arrive.
Why it matters: The delayed payments spotlight Tianjin Transportation’s financial struggles. According to market data, the company has been running a net loss of nearly 700 million yuan annually. Between 2020 and 2022, Tianjin Transportation received combined subsidies of 8.8 billion yuan from the city.
Compared with delayed wages, suspended social welfare payments indicate greater financial difficulties, a legal expert said. “Unless in extremely dire circumstances, companies wouldn't withhold social security contributions,” the person said.
Established in 1904, Tianjin Transport was China’s first public transport operator. It is wholly owned by the Tianjin city government. Its services account for 90% of Tianjin’s public transit. The company employs 18,300 people, including 11,400 bus drivers, according to its website.
It is unclear whether the payment delays affect all employees of the company.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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