sbdcsierra Chapter 28 Acquisition of Lychee Auto Repair Shop
Chapter 28 Acquisition of Lychee Auto Repair Shop
"Brother Yang, you just agreed like that? That's four thousand yuan! Nobody would have said anything if we just used that old, abandoned warehouse."
Yang Wenqing was indignant; this was ripping people off.
The warehouse had been abandoned for a long time, and since the neighborhood office didn't use it, it became a place for homeless people to stay.
"Be more understanding; we're here to get things done."
Wang Yang waved his hand, saying that the money was for buying a title, so that it would be easier to deal with any trouble caused in the future.
Once the results of the report against Chen Jiande are released, we might be able to recover some of the funds.
"Let's go, let's acquire the auto repair shop."
……
"Boss Wang, I have nearly a hundred employees. Your price is hard to accept..."
Manager Qian of the Five-Star Auto Repair Shop, dressed in a tattered suit, with a beer belly, crossed his legs and smoking a cigar, was completely unconcerned about Wang Yang's arrival.
It wasn't that Wang Yang's offer was too low, but rather that Factory Director Qian was unwilling to sign the contract.
The reason is simple: Director Qian is fearless and has nothing to fear.
Even if the factory goes bankrupt, the government will bail it out; Director Qian just needs to wait for arrangements from above.
Losses are common in small and medium-sized state-owned enterprises, and the higher-ups will not cause trouble for Director Qian because of this.
On the contrary, Five Star Auto Repair Shop has been slow to lay off employees and has even received praise from its superiors for persisting long enough.
Once the leading enterprise merges with Wuxing Auto Repair Shop, Director Qian will be able to secure a new position with even higher salary and benefits.
As for the livelihoods of the workers in the coming months, that was not within Director Qian's consideration.
If you can't stand it, just leave on your own. It'll save the factory the trouble of paying you compensation.
"This is my phone number. I hope you will reconsider."
Wang Yang didn't say anything more, but turned and left.
Wang Yang understood perfectly well that Director Qian had no intention of selling the factory to a private individual; he only wanted to continue his corrupt practices.
The most likely outcome for Wuxing Auto Repair Shop is that it will be merged into Yangcheng Auto or Guangke.
In the end, Director Qian will be promoted to supervisor, while most of the workers will be laid off, leaving only those with real skills.
This is the final fate of most small and medium-sized state-owned enterprises.
The factory was merged, the factory manager and other management were integrated, and the workers lost their secure jobs.
"It's really pitiful for these workers to have such a factory manager."
As Wang Yang left the Five Star Auto Repair Shop, he let out a soft sigh.
If employees are laid off early, the government will use money from the auto repair shops' past profits to buy out their seniority, and there will also be corresponding severance pay, which adds up to a considerable amount of money.
Even if the factory is sold to a private individual, which is considered a bankruptcy transfer, according to the system, a portion of the money from the buyout must be distributed to the workers, and the government will also provide some subsidies, which are quite substantial.
Mergers and acquisitions of enterprises are not considered bankruptcies or voluntary layoffs. In principle, they do not directly buy out seniority or dismiss workers arbitrarily. The labor relationship follows the enterprise.
The change in labor relations means that employees go from being highly skilled technicians in small factories to being low-level workers in large factories.
During the merger process, employees will be owed several months' wages, forcing them to voluntarily resign due to living expenses and miss out on most of the subsidies.
Even if you manage to hold out until the end, the buyout fee you receive may be lower than before due to changes in the company and the labor relationship.
In other words, if companies merge, they either won't receive subsidies at the beginning and will only be able to leave with a buyout fee.
Either you get your salary delayed for several months, endure it until the end, and then leave with a subsidy and a reduced buyout fee.
In some factories where the merger process has been lengthy, workers may even be owed wages for more than a year.
Meanwhile, the factory manager of the small factory transformed into the director of the large factory, continuing to hold onto his secure job.
This is also why most small factory owners choose to be merged with large factories.
In the era of layoffs and losing their secure jobs, people were content as long as they could make a living; why bother about the workers?
It's a trend of the times, so you can't really blame these small factory owners; after all, who doesn't want to live a better life?
Soon, Wang Yang and Yang Wenqing arrived at the Lychee Auto Repair Shop.
Compared to the nearly 100 workers at Five Star Auto Repair Shop, there are hardly any people at Lychee Auto Repair Shop.
"Welcome, sir. Are you here to fix your motorcycle?"
As soon as Wang Yang and Yang Wenqing got out of the car, people in work clothes came up to greet them.
"No, I'm here to see your Factory Director Wei."
"That's me, boss. What can I do for you?"
Wei Guodong, the manager of Lizhi Auto Repair Shop, was short-staffed after layoffs, so he took it upon himself to help repair cars.
"You? You don't seem like it."
Yang Wenqing looked Wei Guodong up and down and spoke in a low voice.
Wei Guodong was wearing work clothes stained with oil, his hands were covered in calluses, and a wrench was tucked into his waistband.
He looks like a worker who does all the work year-round, and doesn't fit the image of a factory manager at all.
"What kind of person should a factory owner be? Wearing a shabby suit, with a big belly, sitting with his legs crossed, smoking a cigar?"
Wei Guodong laughed and asked in return.
As the factory director, Wei Guodong often mingled with the frontline employees and blended in among the workers.
Even during the later large-scale layoffs, the employees never protested; instead, they followed Wei Guodong's arrangements.
Wei Guodong never thought about what his future would be like after the factory closed down.
He only wanted his workers to have a good ending.
"Director Wei is quite humorous. Let's just get straight to the point: we're here to acquire Lychee Auto Repair Shop."
"Wow, these two kids are so young, they're really promising. Let's go inside and chat."
Greeted by Wei Guodong, the two arrived at the manager's office of the Lychee Auto Repair Shop.
It was called the factory director's office, but it was actually just a simple tin shed set up in the workshop.
"As for the staff, our Lychee Auto Repair Shop has thirteen employees, including myself, all of whom are experienced mechanics."
"In terms of equipment, our Lizhi Auto Repair Shop has a complete set of equipment, including brake drum boring machines, riveting machines, leaf spring disassembly and assembly pressure plates, and various parts machinery."
Wei Guodong handed over the report; he had been waiting for this day for a long time.
"Wow, there were over thirty people a few days ago, and now half of them have been laid off?"
Yang Wenqing was somewhat shocked. Lizhi Auto Repair Shop was originally a car repair shop with a scale of hundreds of people, just like Wuxing Auto Repair Shop.
"It took some effort, but fortunately the result was pretty good, and the old guys were all very satisfied."
Since the profits of the auto repair shop started to decline, Wei Guodong knew that his secure job wouldn't last much longer.
Instead of waiting for policies to be implemented, it's better to take the initiative and strive for greater benefits for employees.
Therefore, Wei Guodong took the initiative to lay off employees and negotiate more severance pay for workers who were not very skilled.
The remaining dozen or so master craftsmen no longer have financial problems, and with their skills, they can make a living wherever they go.
"So, Director Wei, are you and your experienced workers willing to work for me?"
Wang Yang took out the acquisition contract and placed it on Wei Guodong's desk.
The employees and equipment of Lizhi Auto Repair Shop are the foundation that Wang Yang needs.
Wei Guodong picked up the acquisition contract and carefully read every clause, especially the one concerning the resettlement of long-term employees.
All terms and conditions are legal and compliant, and there are no clauses that infringe upon workers' rights.
Wei Guodong has persisted until today without being integrated; it's time for him to step down.
"I am very satisfied with this contract, but I still need to get the approval of the experienced workers. I hope you can understand, Boss Wang."
"Of course, I hope Director Wei can trust me that I will never mistreat those with technical skills."