Even if they don't work, they still have to support hundreds of people. The key is that Yuezhou Pharmaceutical Factory has an uncertain future, which is a headache for the two chief officers.
Moreover, the Yuezhou region, including the entire Zhijiang Province, has encountered a serious problem. With the rapid rise of a large number of township enterprises, they have surpassed state-owned factories in everything from food, accommodation and transportation, and have firmly occupied the active position.
What about the old state-owned factories? Their production efficiency was low, their equipment was outdated, their products were outdated and lacked innovation, and crucially, their production was based on planned directives, with no room for initiative.
They had to produce as much as their superiors told them to, no more, no less. As for whether the products could be sold, who had any business with the workers? That was the factory leaders' business.
The factory leaders thought, "If the products can't be sold, what's my business? My job is to produce them, and how to sell them is the responsibility of the higher authorities."
The higher authorities are also confused. We only make plans based on the annual production situation. Isn’t it the responsibility of the supply and marketing department of your factory to decide how to sell the products?
In this way, the three parties argued with each other, which eventually led to the company becoming increasingly difficult and even completely reaching a dead end.
However, Zhijiang Province has one advantage. Before the reform and opening up, there were not many state-owned factories, and even fewer large-scale state-owned factories. Therefore, after the reform and opening up, most people chose to start their own businesses and open factories. Those who had no capital became middlemen to exchange chicken feathers for sugar.
When the wave of layoffs began in the 1990s, it was the workers in heavy industrial cities, especially in the Northeast, who simply could not survive.
On the contrary, Zhijiang Province is still calm. Some workers have been laid off, but there are so many township enterprises that can still make a living. If they really can't make ends meet, they can still go to the vegetable market to sell vegetables. There is always a way to make a living, so Zhijiang Province is the least affected.
But it was still 1984, the workers had not been forced into desperation, the wave of bankruptcies had not yet arrived, and the wave of layoffs was still a few years away, so the workers in the state-owned factories were still quite arrogant.
It is not just the pharmaceutical factories in Yuezhou that are facing difficulties. For example, the largest state-owned factories in the area, such as Yuezhou No. 1 and No. 2 Textile Factories, Yuezhou Machinery Factory, etc., are also facing difficulties.
Every struggling factory needs regional subsidies, but where does the region get the money? Don't forget that Yuezhou was still primarily agricultural at the time. Just from the agricultural taxes collected from farmers, how much could the subsidies be?
This is also a very headache for Li Bingquan and Han Dingze. Where does the money come from?
If we ask the cadres of 2020 to answer, it's very simple: print money. Run the nuclear-powered printing press and keep printing money. Then keep borrowing from the bank. After all, who cares if they don't pay it back?
But the cadres in 1984 were still relatively morally upright. If they had no money, they had no money and would not think of any crooked ways.
After listening to Bao Yong's words, Li Bingquan asked, "Then tell me, how do we cooperate?"
Bao Yong gritted his teeth and said, "There are two options. One is to sell the Yuezhou Pharmaceutical Factory to the Pumpkin Vine Company at a discount, but the prerequisite is that all employees must be accepted. This way, the region can get some money and the employees will have a way to make a living."
Another option is to sell Yuezhou Pharmaceutical Factory at a discount and then establish a wholly-owned factory with Pumpkin Vine Company. If they don't insist, we'll take control; if they insist, we'll just take shares and receive dividends."
Han Dingze's heart beat faster after hearing this. No matter which of these two plans was right, it would be beneficial to the region and to him as the commissioner.
They can get some money by selling the region, and they can also get certain shares in the joint venture region. The key is that the employees of Yuezhou Pharmaceutical Factory can be paid full wages as soon as they have new orders, so no one will cause trouble.
The problem is that there's no precedent in Zhijiang Province for selling off state-owned factories or forming joint ventures. Is Yuezhou going to be the first to try this? What if things go wrong? His political future would be ruined.
Yes, Commissioner Han was not thinking about how to improve the economy, but about his own interests and future.
He has selfish motives, but Li Bingquan doesn't.
Li Bingquan was determined to make a career and carry out reforms, which of course involved risks, just like when he fought in wars before. If you are afraid of death, you shouldn't be an official.
"Okay, I agree. Tomorrow during the negotiations, bring up these two proposals and see how Pumpkin Vine Company reacts."
Han Dingze wanted to speak up to object, but he couldn't open his mouth, so he just agreed.
The next day, in the conference room of Longshan Hotel.
After listening to Bao Yong's two plans, Chen Shuqin rejected them outright.
Are you kidding me? How could a state-owned factory be so easy to get into?
Putting aside the question of whether a joint venture is worthwhile, it's clear that the workers are difficult to deal with. She saw clearly the workers at the Yuezhou Pharmaceutical Factory causing trouble yesterday.
Wouldn't it be nice to run your own factory, hire your own people, and make your own decisions? Why go through the mess of a state-owned factory?
Bao Yong thought of many plans, but he didn't expect that Hong Kong people would be so difficult to fool. They refused directly as soon as they opened their mouths, which really gave him a headache.
"Manager Chen, you can actually consider this. Yuezhou Pharmaceutical Factory has ready-made machinery and equipment, as well as skilled technical workers. When the time comes to establish a joint venture, as long as the funds and raw materials are in place, we can start operations directly."
"Manager Bao, the pharmaceutical factory we want to build is the most advanced, fully automated, high-tech one. The Yuezhou Pharmaceutical Factory's equipment and factory buildings don't meet our requirements. What's more, the workers there, hehe..."
When Bao Yong heard this, he became very anxious and cursed the leaders of the pharmaceutical factory for being good-for-nothings and idiots. They actually let the workers cause trouble at the critical moment of the negotiations between the two sides. He said he would definitely fire them when he returned.
"Then Manager Chen, let me ask you, if you could cooperate with Yuezhou Pharmaceutical Factory, what would your requirements be? Let's just chat casually, hehe."
Chen Shuqin curled her lips after hearing this, but remained polite on the surface:
"First of all, we only want workers who have skills and obey management. We don't want workers who cause trouble, and we shouldn't be responsible for retired workers."
Bao Yong is not afraid of your suggestions, but he is afraid that you will refuse to talk about it at all.
Now that Hong Kong has its own demands, he is secretly happy in his heart. On the surface, he pretends to be calm and writes down the demands one by one and prepares to report.
"Secondly, we're not planning a joint venture. Exclusive operation is preferred, after all, we've invested HK$150 million. If Yuezhou wants even a 10% stake, it'll need HK$15 million. If you want a 51% stake, that's fine, but you'll need to contribute HK$76.5 million. So, we agree to divide the equity between the two parties based on their investment ratio."
Bao Yong felt a toothache when he heard this. He wanted 76.5 million Hong Kong dollars, but how could Yuezhou region possibly come up with so much foreign exchange?
Don’t forget that in the past year, the entire country’s foreign exchange reserves were only a few billion US dollars. Now we have to spend 10 million US dollars to set up a factory?
Are you kidding me, Yuezhou? I asked you to earn foreign exchange, but I didn't ask you to spend it.
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