After the price of the prescription was settled, the rest of the negotiations were going smoothly. Feng Yu used 13 million RMB to acquire all the non-state-owned assets of the Pharmaceutical Administration's subsidiary companies. After conversion, it was still 11.27 million RMB. Feng Yu had already gotten the upper hand in terms of the prescription and did not mind this part. Now, he only wants to speed things up.
Feng Yu discussed with the City Government and decided to merge these 43 companies into one head office, a few pharmaceutical factories, and a few branch companies.
Bing City Pharmaceutical Company will be merged with 2 Chinese medicine factories to form Bing City Pharmaceutical Corporation's Shiyutang Pharmaceutical Factory. Bing City Pharmaceutical Factory No. 1 to No. 6 will be retained and some smaller factories will be merged to form 6 branch factories. The few animal medicine factories will be merged to form Bing City Pharmaceutical Corporation's Animal Medicine Factory.
Bing City Pharmaceutical Commercial Company, Supply and Marketing Company, and a few other sales companies will be merged to form Bing City Pharmaceutical Trading Company. Bing City Pharmaceutical Industry Research Institute and all the pharmaceutical factories' research departments will be merged to form Bing City Pharmaceutical Corporation's Pharmaceutical Research Institute.
A few engineering companies, real estate development companies, and asset management companies will be merged to form Bing City Pharmaceutical Corporation's Real Estate Development Company.
Some of the non-performing assets and liabilities will be transferred to one company and filed for bankruptcy.
The City Government objected to this. They felt that Feng Yu was getting rid of the donkey after it was no longer of use. Letting those who had made significant contributions to the company lay off was a grave mistake and must be corrected immediately!
Feng Yu explained to them that he was not asking them to be laid off. After this company went bankrupt, these workers will not lose their jobs. They will be transferred to other pharmaceutical factories or branch companies. Of course, those leaders will be sent back to the Pharmaceutical Administration for redistribution. Anyway, they cannot be transferred to Bing City Pharmaceutical Corporation. If they are transferred, there will be too many people at the same position!
When Feng Yu was at the Machinery Company, he had done this before. He wants the workers, but he does not want the leaders! To Feng Yu, those leaders who were in charge of Party affairs were not as useful as an ordinary officer in the Union. Their salaries and benefits must be high, and they must also be given special benefits.
Just the salaries and benefits of these people will not be a small amount. Although Feng Yu did not feel pressured to take care of these people, he will still be unhappy. Not to mention the fact that they were sitting in the same position without doing any work, but how could people with no ability and relied on hard work to get to where they were, get such a high salary in the company? You said that you have made so many contributions to the company, but when you really want to list them, can you find one?
How many party members did you recruit? But what about the leading role of Party members and cadres? Have you done that? Have you gone deep into the production line, or have you found a good sales channel for the company? You don't have anything and only know how to trick people into paying dues. What use do I have for you?
The unions can organize all the events you organize, and they can organize them better than you can. There is a trade union, and after the merger of the factories, there are fewer positions. So many legal persons have been abolished, and there is no way to arrange them. At least they have some experience in management, not to mention people like you who are purely practical.
"General Manager Feng, after the merger, there will be fewer positions. Some people will be transferred to the City for rearrangement. We understand this. But you can't possibly draw out more than 300 people at once, can you? There are only forty-three companies in total. You have already removed eight people from one company. How can there be so many idle people? Furthermore, the City has no way to arrange for them! "Deputy Mayor Li angrily said.
"The City has no way to arrange for them, and there are no positions for them in the company. After the merger, including the branch factories and subsidiaries, there will only be 12 companies. Deputy Mayor Li, can you tell me how I should arrange for them? How can I send 30 idle people into one company? Are you going to set up a pension company to take care of these people? In the past, many companies did not make money, and it has nothing to do with these people? I need to invest so much money, and if I have to take care of so many idle people, then I will have to spend more than 1 million RMB every year. "
"Why is it so high? Their average salary is less than 2,000 RMB a year."
"That's right. If it is only their salary, it's fine. But what about their other benefits? Do you know what they said during the survey? They are already at this level, and they should enjoy these benefits. What's the point of restructuring the company for these people who only want to enjoy life in the company? Why did our Bing City's Ceramics Factory, Kettle Heating Factory, Leather Shoe Factory fail? It was because the same people were still managing those factories, and the City had wasted more than 1 million RMB. I don't care about 1 million RMB, but how can I not be cautious when it comes to 100 million RMB? "
Everyone knew what Feng Yu had mentioned. These were the few failures during the restructuring process over the past few years. They thought about it carefully, and it seemed like what Feng Yu said was true. The leaders of those factories did not change.
Feng Yu was thinking in his heart. This was a market economy, and these people were still stuck in the planned economy era. They were waiting for the City to give them tasks. Without tasks, they did not know how to produce. Even if they produced something, they did not know how to sell it. They also did not know what products were popular in the market. They did not even know how to package the products. How could the factories not fail?
But Feng Yu only thought about these and did not say it out loud. He also did not want to fire all these people. This was not practical. Even in Feng Yu's previous life, it was not easy to fire a large number of people in the 2010s. Actually, these people had another advantage … … they can talk!
In Feng Yu's previous life, how did Apollo Oral Solution suddenly become popular? Was it because of the advertisements? Or the products were really good? Neither. The reason for their success was because they used the direct sales model.
In Feng Yu's previous life, Apollo Oral Solution had more than 10,000 salespeople. Their target was to have 100 of their salespeople in every county. There were more than 1,000 counties in China. What about the cities? There were more than 2,000 counties.
Although Apollo Oral Solution did not manage to have 100 salespeople in every county, they managed to have salespeople in every county except for the ethnic minority areas! It can be said that the number of salespeople in many areas was even higher than the postmen!
Feng Yu also wanted to try the direct sales model for the healthcare products produced by Bing City Pharmaceutical Factory. The most important thing in direct sales was … … numbers!
Talking was the specialty of those officials. Many of them had been doing this all their lives. They let their workers work hard and live a tough life. At the same time, they were enjoying their lives!
Feng Yu did not need them to exaggerate the effects of the products. These were medicines and not health products! Although the prices were slightly higher than normal medicines, it would not be like health products where the profits were more than 100 times!
These people would be the sales representatives of the trading company in the future. They would use their results to speak for themselves. Those who did not have good results would be fired. If their results were good, Feng Yu might even let them return to their leadership positions!
But now, Feng Yu could not say anything. He wanted the City to think that Feng Yu had given in to them. Only then, they would be able to discuss other conditions.
"General Manager Feng, the City cannot arrange for these people. All the companies had merged, and there are not many positions in the Drug Administration. There are only about 300 people. The City can't do anything about it."
"Fine. I will give them a chance. This is the last time I will give in. I am a businessman. The purpose of investing is to make money. I am not a philanthropist! "
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