Chapter 417 – Everyone has their uses
After the value of the formulas was settled, the rest of the negotiations went smoothly. Feng Yu used 13 million RMB to purchase all the non-government assets. Based on the actual figures, it should be 11.27 million RMB. But since Feng Yu had already benefited from the formulas, he was willing to pay more for this. He only wanted things to speed up a little.
Feng Yu and the City decided that these 43 companies will be merged into a corporation with some subsidiaries.
Some of those companies which were heavily in debts were merged into one company and applied for bankruptcy.
The city had objected to this. They felt that Feng Yu had let those workers who had contributed to the factories down. The workers will lose their jobs. This was a severe mistake. It must not be implemented.
Feng Yu explained that he was not going to retrench all those workers. This company might be closed down, but those workers will be transferred to other factories. Of course, those leaders will have to return to the Pharmaceutical Administration Office. It will be up to the office on where they want to deploy them next. But these people cannot be sent to Bing City Pharmaceutical Corporation. There cannot be more than one person for every position!
When Feng Yu was at the Machinery Company, he did the same thing. He wanted the workers but does not want those leaders! Especially those that were from the Party. To Feng Yu, these people were useless compared to those workers. Yet they were still receiving high salaries and benefits.
Just their salaries and benefits were not a small amount. Although Feng Yu could easily afford these people, he was not happy to do so. They do not have any capabilities, and they got this position was because they were from the Party. Why should Feng Yu pay them so high? You said that you had made many contributions? Fine. List them down on paper.
You said you had groomed many Party members? But what else have you done as a leader in the Party? Have you ever done anything to help the company? You have not done anything and only know how to recruit more party members for membership fees. Why should I still employ you?
Those activities you organized can also be arranged by the union. The Union can still coordinate better activities than you. With the workers Union around and the merger of the companies, there were lesser positions for the higher management. Many of these people have to be let go. Only those that have the capabilities will get to keep their jobs.
“Manager Feng, after the merger, there were lesser positions available. The City could make arrangements for some of these people. But you cannot just remove over 300 people at once. There was a total of 43 companies, and you removed 8 higher management staffs from each company. These people will be jobless, and the City cannot make arrangements for all of them!” Deputy Mayor Li snarled.
“The City cannot make arrangements for them, but there are no more vacancies for them in the company. After the merger, there are a total of 12 companies including the head company and the subsidiaries. You tell me, how do I arrange the positions for them? Just dump 30 useless staffs in each company? Or should I set up a company just to let them have a job? Do you think that those companies that were not doing in the past have nothing to do with these people? I am investing so much money, and if I still have to take care of these people, then my yearly expenses will increase by over 1 million.”
“How come it is so much? Their average salaries are less than 2,000 a year.”
“Yes. If you only consider their salaries. But what about their benefits? Do you know what did they say when we are restructuring the companies? They said that with their ranks, they deserved to enjoy these benefits. These people who only know how to enjoy lives, and if I still let them stay in the company, what’s the use of restructuring the company? Why did restructuring fail for Bing City’s Ceramics Factory, Thermal flask factory, leather shoe factories, etc.? It was because it was still old wine in new bottle. Those people were still the ones that managed the companies. These companies had wasted more than 1 million of the city’s funds. Although 1 million RMB to me is nothing, I am investing 100 million. I must be cautious.”
Everybody knew about the examples give n by Feng Yu. Those factories were the few that failed after restructuring. They thought about it, and it was really like what Feng Yu had said. There were no changes to the higher management after the restructuring.
Feng Yu was thinking in his heart. It was the market economy, and these people’s thinking was still stuck in the planned economy era. They were still waiting for the higher-ups to give them tasks. Without any work assigned, they do not know what to produce. Even when they were able to create something, they also do know how to sell them. They do not even know what products were popular in the market and doesn’t even understand the importance of packaging. How could these factories not fail?
But Feng Yu would never tell anyone about his thoughts. He was also not willing to let those people go. Actually, those people still have their uses. Their most significant advantage was that they knew how to hoodwink others!
In Feng Yu’s previous life, how did Apollo Oral Solution become popular? Because of advertisements? Was the product really that good? None of these reasons. They were popular was because they used the direct sales model.
Apollo in Feng Yu’s previous life had more tens of thousands of sales personnel. Their target was every county there should be 100 sales personnel. In China, there were more than a thousand counties. There were also the cities’ districts. With everything add up, there were more than 2000.
Although they did not achieve the 100 sales personnel in every county, other than those minorities regions, every county have their sales personnel! It can be said that at that time, there was more Apollo’s sales personnel than postmen!
Feng Yu also decided to use the same sales model for Bing City’s Pharmaceutical Corporation’s health products. For direct sales model, the most important thing was for those sales personnel to believe in their products, and they would be able to earn lots of money from selling these products.
Brainwashing was those officials’ fundamental skills. Most of them were doing this for all their lives. They had to let make the workers work hard and contribute to the company and also at the same time, make them accept the harsh working environment. They will just sit back and enjoy life!
This group of people will be the sales managers of the different cities. Their performances will be based on their sales results. Those with poor results will be asked to leave, while those with good results will be rewarded by Feng Yu!
But now, it was not the time for Feng Yu to tell the city his plans. The city must think that Feng Yu compromised with them before he could negotiate with the city.
“Manager Feng, the city is unable to arrange for these people. After these companies were merged, the Pharmaceutical Administration do not have so many positions for them. The city has no ways to help these 300 people.”
“Fine. I will give them a chance. But this is the last time I am compromising. I am a businessman, and the reason for investing is to make money. I am not a philanthropist!”