Traveling through 70's wine

Chapter 279 Reorganization

Deputy Director Ye quickly brought the issue of the meat processing factory's restructuring to an internal meeting of the District Industrial Bureau for further study. The meeting was attended by several directors, secretaries, and heads of important departments. Most of them agreed with Wen Qing's plan, but a few were dissatisfied with the transfer of the meat processing factory, a state-owned factory with a long history, to a private enterprise. They objected at the meeting, saying, "The Changxia Feed Factory makes feed. Let them make food. Will it be for pigs or for people? Can the quality be guaranteed?"

Some people insisted on selling it at the meat processing plant's book value of 41 yuan, saying: "This is a state-owned asset and cannot be sold cheaply to individuals, otherwise it would be a shame to the country." Holding high the banner of protecting state-owned assets, Deputy Director Ye looked at the person who was speaking and wrote down his name in his notebook. He would come down and check whether this guy has protected the state-owned assets well.

However, some people are sober and say: "Book value is not the real value. There is a lot of water in it, such as bad debts that cannot be collected and non-existent inventory. These cannot be calculated."

Liu Zhen, director of the district's industrial bureau, said, "As a higher-level management department, we have responsibilities to both our superiors and our subordinates. Director Ye, you are responsible for auditing the meat processing plant and finding out exactly how many assets and liabilities they have."

Deputy Director Ye nodded in agreement and said, "For the sake of fairness and openness, I think we can invite the Audit Bureau to join the asset division and capital verification team."

Director Liu agreed: "Yes, the Audit Bureau is professional in doing these things."

The asset analysis and verification team immediately went on site to inspect and compared the meat processing plant's account books and actual objects, and found that there were more problems than they had imagined.

There were 200 million yuan in accounts receivable on the books, of which 159 million yuan could not be found for invoices or exceeded the statute of limitations. Another 3 yuan was over 20 years old. Only 21 yuan had a clear creditor-debtor relationship. Of the 190 million yuan in accounts payable, 160 million yuan was due to Changxia Feed Factory, and the other 30 yuan was given to some suppliers of auxiliary materials, packaging and office furniture. The more serious problem was inventory. The book inventory was 60 yuan, but in fact, 30 yuan of goods had disappeared. Deputy Director Ye and a section chief sent by the Audit Bureau found the warehouse manager, who took out his warehouse entry and exit register and said, "We don't have so many things in our warehouse at all."

After checking the two, it was found that there were items worth 18 yuan that had no records of entering or leaving the warehouse. When the Finance Department was asked, the Finance Department replied that they recorded the accounts based on the purchase invoices. The section chief of the Audit Bureau was speechless. He rechecked the account books and registers and found that there were still items worth 15 yuan that were either rotten or not the same as described.

Finally, after an audit based on the principles of prudence and fairness, the net assets of the meat processing plant were -110 million yuan, which was the result after a re-evaluation of the land.

Deputy Director Ye announced the results of the division of assets and verification at the Director's Office Meeting. Those who originally opposed it could not speak. Director Liu said: "Currently, Changxia Feed Factory is the largest creditor of the Meat Processing Factory. If anyone else takes over, they will need to pay them 160 million yuan. Who is willing to do so?"

Someone else suggested: "If the meat processing plant goes bankrupt, it won't have to pay this money?"

Deputy Director Ye nodded: "This is called bankruptcy and debt evasion. It is indeed effective, but what about the workers in the meat processing plant? The meat processing plant will become the first state-owned enterprise in Sifeng to go bankrupt. Who will bear this responsibility?"

The transfer of the meat processing plant to Changxia Feed Factory can be considered as restructuring and innovation, but bankruptcy is another matter. The person who proposed to evade the debt was shocked when he heard this. Was he going to say that this was the responsibility of the leadership? Did he still want to continue to climb up?

Three months later, the Sifeng Industrial Bureau reviewed the transformation of the meat processing plant again. Everyone basically agreed to Wen Qing's several requests and gave the transformed meat processing plant a three-year income tax exemption. At the same time, the principal and interest of the 50 yuan bank loan was written off by the bank. After calculation, the bad debts in the meat processing plant's accounts receivable were as high as 80%, which means a loss of 180 million yuan. Wen Qing promised to pay the overdue wages to employees immediately after taking over, and to be responsible for gradually repaying the meat processing plant's overdue raw material, packaging and other debts, including 160 million yuan to the Changxia Feed Factory. So the feed factory finally bought the meat processing plant for 1 yuan.

As for the employees in the factory, the 8 factory-level leaders were all arranged for other jobs by the Industrial Bureau, and 54 middle-level cadres and 116 ordinary employees were subject to a two-way selection. In the end, about 30% of them resigned either voluntarily or involuntarily, and the retired employees were uniformly handed over to the government for unified social security placement.

For the employees who left, Changxia Factory paid the overdue wages in full and also provided severance pay, which is hard to fault.

Everyone is happy with the meat processing plant's transformation plan. Sifeng District has gotten rid of a heavy burden, Changxia Feed Factory is expected to recover the 160 million yuan in arrears, the workers of the meat processing plant have got their wages back, and the new meat processing plant has been revitalized.

Of course, some people are not very satisfied. Except for a few of the original factory-level management cadres of the meat processing plant who were arranged to continue to serve as leaders in other enterprises, all other people have gone through the early retirement procedures. Some employees with dishonest hands and feet have drifted into society and become destabilizing factors.

The first thing Changxia Feed Factory did after taking over the meat processing plant was to inject 500 million yuan to repay the money owed to others, including the material payment owed by the feed factory and the wages owed to employees. The remaining funds were used to renovate the factory and introduce a production line for processing ham sausage. The original slaughtering workshop was shut down for maintenance, and Wen Qing hoped to introduce an automated slaughtering production line.

Wen Qing also started to adjust the product structure of the meat processing plant. Before the country forced the introduction of designated slaughtering sites, competition in pig slaughtering was very fierce and it could not be the main business of the factory. Of course, with the rise of supermarkets, there is still a market for slaughtering livestock and poultry in bulk for frozen sales.

She renovated the factory buildings and improved the safety and hygiene standards of the meat processing plant. Refractory bricks were used on the walls and floors of the ham processing workshop, ceramic tiles were used in other slaughtering workshops, stainless steel was used for equipment and containers, screens were installed in all workshops, all open ditches in the factory were closed, sewers were disinfected regularly to kill flies and insects, and green belts were replanted with flowers, plants and trees that have mosquito-killing effects as much as possible. The factory implemented a uniform dress code, and each worker was issued three sets of white work clothes. Disinfection was required before entering and leaving the workshop.

She reformed the meat processing plant in accordance with the employee welfare of the feed factory. She replaced the equipment and tables and chairs in the original factory canteen, implemented a buffet, and changed the dishes for three meals a day. The bathhouse provided hot water 24 hours a day, which enhanced the cohesion of the workers.

After the restructuring, the meat processing plant carried out personnel reforms. A group of people with good character, positive values ​​and ability to get things done were selected from the original meat processing plant cadres to continue to serve as deputy factory directors, workshop directors and department heads. Then ten people were selected from the feed factory to supplement the meat processing plant to take on management responsibilities.