"General Manager Feng, I had signed all the contracts. None of the employees were missed out."
Li Mingde called Feng Yu to report to him. This was because from January 1st, the Labor Law was implemented. All units must sign formal contracts with their employees and must pay social security contributions.
When this law was announced, Feng Yu immediately asked Li Mingde to sign the contracts with all the employees. This was to calm them down.
But Li Mingde said there was no need. Everyone in the company trusted Feng Yu.
Feng Yu knew Li Mingde was trying to suck up to him. Everyone in the company trusted Li Mingde more. But Li Mingde still requested for everyone to sign the contracts as soon as possible. He must explain the terms and conditions of the contracts to all the employees.
Also, Bing City Machinery Company must pay the social security contributions for all the employees, including those from the branch factories.
Li Mingde still did not realize the benefits of paying the social security contributions. The government will be responsible for the retired employees' pensions, and the company does not need to pay for it. This will save a lot of money for Bing City Machinery Company.
This was because the government had started to force the employees to pay the social security contributions. Those employees who were close to retirement could pay a lump sum and still enjoy their retirement pay. Of course, this sum will be paid by the company and not the employees themselves.
After Li Mingde announced this news, the employees of the company were even more motivated. Although they had always said that they believed in the company and Li Mingde, everyone was still worried. The nature of the company had changed. What if the company no longer paid their pension?
Now, the government will pay for their pensions, and they do not have to worry anymore.
Bing City Machinery Company's development speed was one of the fastest among all the large enterprises. Some of the company leaders were still delaying the payments. They wanted to wait until the end of the year before paying the social security contributions. But they did not think about the late fees. Of course, the late fees were about the same as the bank's interest. The profits from the late fees were much higher than the bank's interest.
But Feng Yu's company did not need the late fees. They had sufficient funds. If Bing City Machinery Company wanted to get a loan, all the bank heads in Longjiang province would rush to Li Mingde's office and offer him all sorts of benefits.
Two years ago, the bank's loan approval process had been simplified. This was to complete the loans.
The task was indeed completed, and many banks even exceeded the quota. However, this had also led to a series of problems. The most common problem was that many companies or individuals who had taken loans could not repay the loans at all!
This caused a large number of bad and bad debts to appear in the bank, causing the bank to suffer unplanned losses.
But Bing City Machinery Company does not have to worry about this. Bing City Machinery Company's profitability was clear to everyone. All their products were selling well in China and were even exported to Russia.
Even if Bing City Machinery Company does not have the ability to repay the loans, auctioning off the company's assets will help them recover. But these people had approached Li Mingde many times, and Li Mingde told them that Bing City Machinery Company does not need any loans.
If Bing City Machinery Company really lacks funds, then Feng Yu can continue to inject funds into the company. Of course, the City Government will not agree. Every time Feng Yu injects funds into the company, the City Government's shares will be diluted. The City Government does not want to dilute such high quality shares. There was another way, and that was to go public.
Two years ago, China's stock market was booming, and many companies started to get listed to raise funds. One of the most successful companies was Changhong.
Changhong was preparing to be listed, and Feng Yu knew that after Changhong was listed, their share prices would shoot up. Changhong had raised a large sum of funds by issuing shares, and they will have more funds to expand their production lines. They will have more funds to invest in R&D, advertising, etc.
Currently, Changhong was the leader in the domestic TV industry, and no other companies could shake their position.
The Provincial Leaders, where Changhong was located, also started to promote Changhong. This was a political achievement. How could they not take advantage of such a profitable and famous enterprise that appeared in their territory?
But Feng Yu remembered that Changhong will only have two to three years left. This was because Changhong's management will make a huge mistake.
Changhong had too much faith in 21-inch color TV and felt this was the mainstream TV in the market. Now, it seems that 21-inch TV was the mainstream TV in China, and Changhong was the leader in this area. Their production cost was the lowest. It was even lower than many overseas companies.
But in two years' time, the TV industry will expand. 25-inch, 29-inch, 32-inch, 34-inch, and even 42-inch TV will appear. All the TV companies were trying to expand their TV industry, and the market demand was also in this direction.
At that time, Changhong was still manufacturing 21-inch color TV, and their production had not decreased. This resulted in a huge backlog of their products, and they could not sell their products.
This was also a turning point. Changhong went from being the leader of the TV industry in the country to number two, number three, and number four. Their rankings kept dropping.
Of course, it was not obvious now. But Changhong will still be making profits for the next three years.
Many companies' success made the local governments jealous. They suddenly realized that companies do not need to take loans to raise funds and grow rapidly.
Also, after the company was listed, the share prices will rise, and the company's market value will increase. This way, a big company will appear in their territory. A company with a market value of 100 million RMB might become 300 million RMB after it was listed.
During my tenure, there were XX companies that got listed in our city. Among them, XX companies had a market value of more than 100 million RMB, and XX companies had more than doubled their assets. The leaders saw this person and felt he was good at managing the economy. This was the period when the whole country was focusing on the economy. If not him, who else should be promoted?
So, all sorts of companies started to get listed. Many companies could not even reach the standards to be listed. But it's fine. With the help of the local governments and the loopholes, a large number of companies got listed. The number of companies that got listed last year was more than ten times more than the year before.
After the companies got listed, their profits increased, and the investors also made money. But there were also many companies that could not sell their shares after they got listed. There were also some companies that had raised a sum of funds after getting listed, but the funds had disappeared. It was taken away by the local government or the company's leaders. Some companies had simply used the funds to fill the hole.
But no matter what, the local governments saw listed companies as a sign of political achievements. All the local governments wanted more companies like this to appear in their territory.
So, Li Mingde was called over by the leaders to ask Bing City Machinery Company to get listed!
Li Mingde had called Feng Yu to report on his work and to ask for help.
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