(Yicai Global) Jan. 29 -- Beijing Hyundai Motor, a joint venture between BAIC Motor and Hyundai Motor, is planning to relocate some of its staff from Beijing to other more active regions instead of the rumored layoffs, according to an insider at the company. 

Some 1,000 first line employees, or one-fifteenth of the total workforce, will be transferred to  Cangzhou in Hebei province and Chongqing because the output there has increased, a relevant person in charge at the Beijing-based firm said, adding that production in the three Beijing plants will not be affected. 

The company aims to demolish its first plant in Beijing, lay off 2,000 workers, and halt production for 46 days, Chinese news outlet International Financial News reported on Jan. 26, citing employees. Those let go will be paid severance packages based on the number of years served, three-and-half-times their year-end bonuses, as well as CNY8,000 (USD1,180) as an additional incentive.

The firm is just going through adjustments involving its employees and capacity but not laying off workers as rumored, a South Korean executive told Yicai Global. The overcapacity rate is not as big as estimated and besides, plants in Cangzhou and Chongqing are increasing their output and thus need experienced workers to pass on their experience, the chief added.

Many employees in the first plant of Beijing Hyundai are experienced and the firm is unlikely to lay off competent workers because it will release eight new cars this year in China, the above executive said.

South Korean parent Hyundai Motor has great expectations from the JV, the chief said, adding that the firm is learning from Dongfeng Yueda Kia Motor, a joint venture between China's Dongfeng Motor, Yueda Group and Seoul-based Kia Motors, and considering to sell overseas-produced vehicles in China.

Beijing Hyundai issued a notice earlier that it offers CNY5,000 to each employee that agrees to move to Cangzhou or Chongqing, as well as to specific posts in Beijing's Shunyi district, a production line employee said to Yicai Global. Work shifts will be adjusted to fit the transferred staff members' needs, the person added. 

The company will also pay for one round-trip to Beijing each month for those employees that have registered permanent residence in the capital city, the South Korean executive added.

Editor: Emmi Laine