The shadow of sluggish sales had not yet dissipated when a more direct and cruel reality pierced the families of thousands of employees at the Red Star Factory like an icicle—payday had arrived, but wages had not, as in the past, been delivered to everyone's pockets on time and in full.
Early in the morning, a growing crowd had gathered in front of the finance department. Workers clutched their empty pay purses, some silently smoking, some pacing anxiously, and others whispering amongst themselves; a tense and uneasy atmosphere permeated the air. At this time of year, this place would usually be filled with the hissing of money counting machines and the relaxed laughter of people receiving their wages.
"What's going on? What time is it? Why haven't you paid us yet?"
"I heard... the factory is out of money."
"Impossible! How could such a big factory not be able to pay wages?" Some people refused to believe it.
"How is that impossible? If the stuff piled up in the warehouse can't be sold, where will the money come from? My brother-in-law works in the finance department, and he said the accounts are almost empty!" The well-informed person lowered his voice, which instantly escalated the anxiety around him.
The finance department door finally opened, and instead of an accountant carrying a money box, the finance department head and the factory office director emerged with grave expressions. A crowd immediately swarmed around them.
"Quiet down, everyone! Quiet down!" The factory office director raised his voice, trying to calm the restless crowd. "The factory is currently facing some temporary difficulties, and cash flow is tight. This month's wages... the factory leaders are working on a solution and will definitely resolve it as soon as possible!"
"How soon is 'as soon as possible'? My family is waiting for rice to be cooked!" an experienced chef couldn't help but shout.
"Exactly! The child's tuition fees, this month's utility bills—can't we wait for any of those?"
"If we can't pay wages, is the factory going to go under?" Panic spread like wildfire.
The finance manager explained with difficulty, "It's not that we won't pay, it's just... we need to wait a few days. The factory is actively chasing up outstanding payments and is also applying for support from higher authorities. Please trust the factory leadership; we will definitely overcome this difficulty!"
But empty promises cannot fill an empty stomach, nor can they cover the pressing living expenses. Complaints, doubts, and even tearful lamentations echoed in front of the office building. Some angrily threw down their cigarette butts, some slumped in corners sighing, and many more lingered there, unwilling to leave, as if simply holding on would somehow bring them money.
The news spread like wildfire throughout the factory. Although the machines in the workshop were still running, the workers' minds were clearly no longer on them. The experienced workers had no intention of guiding the younger ones, and the younger workers were making numerous mistakes, resulting in a visibly rising scrap rate. A sense of "it's all for nothing" and negativity enveloped the production line like a thick fog.
"What's the point of working? All the work will just sit in the warehouse rusting, and we won't even get paid!"
"If I had known it would turn out like this, I would have rather..."
Rumors began to breed in more malicious forms.
"I heard the factory leaders transferred all their money!"
"Is the company going out of business? Will we lose our jobs?"
The atmosphere in the factory area shifted completely from anxiety to panic and despair. In its decades of operation, Hongxing Factory had never experienced a situation where wages couldn't be paid. This wasn't just an economic blow; it was a shattering of everyone's psychological defenses. For the first time, the "iron rice bowl" upon which they depended for survival showed clear cracks, as if it could crumble at any moment.
Standing at her office window, Liu Li looked down at the lingering crowd below, listening to the faint murmur carried on the wind, and her heart sank to the bottom. She knew better than anyone the factory's current financial situation; it was not something that could be resolved with a few days' delay. Inventory piling up, accounts receivable collection slow, bank credit tightening… cash flow was on the verge of collapse.
She was confident she could overcome technical challenges and implement management reforms. But faced with the direct loss of funds and the crisis of paying wages to thousands of workers and their families, she felt an unprecedented sense of powerlessness. This was no longer a problem in a single link, but a shattering of the very foundation of the company's survival.
She knew she had to find a way out as soon as possible—a way that would bring in cash and get the machines roaring back to life to create value. Otherwise, the Red Star Factory might not survive the winter. The wage payment crisis was like a loud alarm bell, waking everyone who was still dreaming of returning to the peaceful days of the past. Change was no longer an option, but the only way to survive.
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