Chapter 116 You Think Too Simple
"It's difficult." Su Xingmin nodded, "The efficiency has dropped sharply."
Lu Hao asked again, "I heard that Hongyuan Beverage Factory is implementing a contract system?"
Hongyuan Beverage Factory is the name of the beverage factory where Su Xingmin works. Just by listening to the name, you can tell that he is not the son of the main wife. The mothers of the second factory, the third factory, and other beverage factories belong to the Municipal Food Industry Association, and the Municipal Food Industry Association
Behind the scenes is the Municipal Planning Commission!
Hongyuan Beverage Factory's backing is not strong enough, so naturally it does not receive enough support.
Enterprise contracting system.
Collectives or private individuals can contract the entire enterprise, or a certain production department, production line, sales, canteen, etc.
Many companies have been pursuing this approach in recent years, and the result of this approach is likely to be the conversion of state-owned entities into private assets.
It's a bit similar to a wet market.
The vegetable market is leased, while the beverage factory is contracted.
In fact, there is not much difference in rough calculation.
"That's what happened." Su Xingmin sighed, "The efficiency of the factory has never been good, profits have been declining year after year, and the products have even become unsalable, so we adopted this method, and this is also encouraged by the higher-ups."
He didn't ask Lu Hao how he knew it, because it was no longer a secret. Everyone in the factory knew it. He often said it at home, and Su Jin must have heard about it. He just thought that Su Jin mentioned it to Lu Hao accidentally.
He has worked in a beverage factory for many years and has deep feelings for her, but now the situation in the factory is getting worse and worse, and he is also very worried.
"Last time I came here, I talked about this matter with Lao Su." Mentioning this matter, Liu Changping was also very touched, "In the early years, all profits from the beverage factory were turned over, and the workers were not very motivated.
No matter how much you work, you will be paid a dead salary anyway, and not a penny of the income will go into your own pocket. The leaders in the factory have little enthusiasm because they have very little power, let alone the power to fire workers, even if they approve 20 people in a row.
You can’t even get the right to use a flat toilet, and you have to report it to everyone.”
"We have no rights over workers' wages, import of equipment, etc."
Leaders and workers of state-owned units, although they were looking for an iron rice bowl, were actually a bit miserable in the early days. They did not have any power over production or sales. They had to do everything according to the plan. The higher-level departments would formulate and plan. Whatever the society needed, they would produce what they needed.
What is determined is not determined by the market, but by the superior leadership department.
A proper puppet.
Even if a product is very popular, has a huge gap, and has huge profits, the factory leaders cannot decide to produce this product and can only produce products within the planned range.
"Under this situation, from leaders to employees, the enthusiasm for production is not high, resulting in a lot of waste, and inactivity is the norm. The situation has only improved in recent years. The beverage factory has implemented a factory director system, giving the factory director a certain amount of
With power, in addition to completing the planned tasks, the company can decide what products it produces, and can use part of the profits as bonuses to increase the enthusiasm of employees, or reinvest to expand production." Liu Changping took a few sips of wine, and this happened.
It was also a headache for him.
"Not only that, we have also obtained certain promotion authority in terms of personnel, and can recruit some talents from outside."
Lu Hao nodded.
This is the case for beverage factories, and it is also the case for many other state-owned units. They have more and more independent power, and there are fewer and fewer constraints tied to the units. The difference is that the strength and intensity of reforms in each unit are different.
However, it is not necessarily true that changes will be effective. Most companies die on the road during the reform process.
Hongyuan Beverage Factory and Xingsheng Garment Factory, where I worked before, both of these companies carried out the reform of the factory director system, but neither went far.
"Is anyone contracting it?" Lu Hao asked.
"No." Liu Changping shook his head, "The competition is too fierce and there are no benefits. No one dares to contract. In the early years, there was only one beverage factory in the city, but now there are more than 100 beverage factories in the city, and companies that only produce soda drinks
There are forty or fifty companies, and there are also more than ten or twenty companies that produce pure water."
"Statistics and unified marketing are slowly being liberalized, and all companies are entering the market to compete. Without protection and security, many factories are struggling."
Letting go of statistics and unified marketing, and turning the planned economy into a market economy is tantamount to pulling these enterprises out, and whether they are mules or horses is immediately revealed.
Su Xingmin also nodded, "Jiangcheng's annual soda production is 120,000 tons. The total output ranks second in the country. The volume is so large and the market is so small. It is too difficult. Our factory can only do so among so many beverage factories.
Ranked in the middle and lower reaches, there are the Second Beverage Factory, the Third Beverage Factory, the Glucose Beverage Factory, the Marine Beverage Factory, etc. Many factories have introduced a number of advanced production equipment from abroad, and their annual production capacity and hygienic quality have improved. They
The products are very popular.”
"The market is so big, and their products are popular, so the sales volume of our factory's products will naturally drop. This is why the factory is now implementing a contracting system. It is the same as the joint production contracting in rural areas. It wants to improve employees through this method
to increase corporate profits, but currently few people have the courage to take on the contract.”
Lu Hao understood that such fierce competition must have frightened his father-in-law.
The last time Liu Changping came here, he probably discussed this matter with his father-in-law. He probably wanted to contract a certain production line or a certain link in the beverage factory with his father-in-law, but neither of them had the confidence to try it.
If you fail, you may lose everything.
"The main problem is product quality." Zhang Yongqiang immediately expressed his opinion, "Dad, Uncle Liu, I think your beverage factory can improve its product quality. Learn from other beverage factories and introduce advanced production equipment from abroad.
Recruit some talents to improve the taste and quality of the drinks, so that we can turn losses into profits."
He is full of confidence.
Lu Hao shook his head, "You think too simply."
"I think it's so simple. Isn't the method I proposed wrong?" Zhang Yongqiang felt insulted. "Is it possible that you can come up with better opinions?"
"Of course what you said is right, but it's just a bunch of useful nonsense." Lu Hao took a sip of wine. He actually had a good drinker.
If people don’t have money, you ask them to make money. Everyone knows that they have to make money, but how to make money to become rich? This is the key to the problem.
"You said you introduced advanced production equipment from abroad, but did you know that these all require foreign exchange? How can you introduce advanced production equipment without foreign exchange?" Lu Hao said.
"If you don't have money, just get a loan. It's easy to get a loan now," Zhang Yongqiang said. "You can also get a loan in foreign exchange."
"Of course there is no problem with the loan." Lu Hao affirmed, but also pointed out the serious problems inside, "If there are only a dozen beverage factories in the city, it may be easy to get loans, or if Hongyuan Beverage Factory can rank first in the industry
If you are at the forefront, it will be very easy to get a loan. But the problem now is that Hongyuan Beverage Factory is only a middle-class and lower-ranking one in the industry. There are also the Second Beverage Factory and the Third Beverage Factory above it. It is easy for them to get loans. The remaining beverage factories
Chapter completed!