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WISCO was exposed to layoffs 1 10,000 people, and some employees will retire early and rest at home.
WISCO was exposed to layoffs 1 10,000 people, and some employees will retire early and rest at home.

When the steel industry was in an unprecedented downturn, WISCO, which was in the first phalanx of the steel industry, launched a large-scale "slimming". Yesterday, it was reported that WISCO Group may lay off 1. 1 10,000 people, and WISCO plans to lay off 6 1.96 people. The Beijing News reporter confirmed this news from three independent channels yesterday.

Last night, WISCO Group said that there were no "layoffs" at present, and measures such as "quitting posts" and "temporarily stopping work" did not change the labor relations and wage relations of employees.

Some employees signed "resignation" contracts during the layoffs.

A person in the steel industry told the Beijing News that the number of layoffs reported by the media is accurate. He issued a list of layoffs, showing that WISCO will lay off 6 196 people. The list was issued on February 8, 65438 and signed by the general manager's office of WISCO.

The Beijing News reporter learned from Wuhan that WISCO is currently carrying out large-scale layoffs and the work is progressing in an orderly manner. Some employees have accepted the resignation conditions given by the company.

After connecting with the reporter of Beijing News, a WISCO employee quickly hung up the phone, saying only that he had signed a contract with the factory and was not convenient for an interview.

The Beijing News reporter called a person in charge of WISCO Steel Plant as an employee. When asked about the large-scale layoff plan, the other party said that the company does have a layoff plan now, but the rumors on the Internet are not credible. "It is the general trend to improve quality and efficiency and reduce labor costs. Of course, young employees will be treated differently. " The person in charge said.

Some employees will retire early and rest at home.

A layoff plan shows that the layoff targets are mainly employees who are under-employed, incompetent and have no competitive positions. They will leave their jobs by early retirement and rest at home.

According to information from official website, WISCO Group is the first super-large iron and steel complex built after the founding of New China, and has entered the Fortune Global 500 for six consecutive years.

However, the downturn in the industry has put pressure on WISCO's performance.

According to the third quarterly report of this year, in the first nine months, WISCO shares turned losses substantially, with a loss of 1.00 1 billion yuan, and its net profit plummeted by 200%. In the first half of this year, WISCO's stock still earned more than 500 million yuan.

The above list of layoffs shows the connection between layoffs and performance changes. The Energy Power Plant and Cold Rolling Plant under WISCO Co., Ltd. have the largest number of layoffs, reaching 600-700. In the first half of the year, the company's income from cold-rolled products was about 654.38+0.386 billion yuan, down 22.44% year-on-year.

Zhang Lei, a senior analyst of Shanghai Iron and Steel Network, told the Beijing News reporter that although layoffs will help reduce the burden on enterprises, enterprises can't get rid of the current predicament only by layoffs.

News expansion

WISCO in the storm "added insult to injury"

Under the double pressure of the central inspection and the intensification of the industry's winter, WISCO (Group) Company, which was established nearly 60 years ago (hereinafter referred to as "WISCO"), has clearly exposed its ills for the first time.

Deng Qilin, the former chairman, was dismissed, and employees were assigned to be policemen. The reorganization of 10 and Liugang officially ended, and the patrol rectification report of18,000 words sounded its own horn ... After Deng Qilin was announced to be dismissed on August 29th, in just a few weeks, the news of WISCO, an old central enterprise, kept coming, and fell into a storm of public opinion.

Many people regard it as the end of an era of WISCO, and more people hope that WISCO will usher in a new era, because it is the epitome of China iron and steel enterprises.

WISCO's "old problem": big but not strong, some leaders use "steel" for personal gain

Deng Qilin's downfall made the public re-examine the chairman who was in charge of WISCO 10 and WISCO's "Deng Qilin era".

The first problem is the rapid expansion of WISCO under the leadership of Deng Qilin.

20 1 1 In an interview with the media, Deng Qilin proudly said, "We rebuilt a WISCO in five years". According to its introduction, when I first took over WISCO, the company's production capacity was about 9 million tons, which was not only thrown out by the old rivals Baosteel (with a production capacity of more than 30 million tons at that time) and Angang (with a production capacity of more than 6.5438+0.5 million tons at that time), but even the former "little brothers" Laiwu Steel and Jigang also had a production capacity of 6.5438+0 million tons. "In this case, we are very confused. What should our company do? " Deng Qilin said that what is even more unacceptable is the proposal of "Baosteel's merger and reorganization" put forward by WISCO and SASAC officials.

As a result, WISCO set off a round of rapid mergers and acquisitions. In the first half of 2005, Egang was reorganized and Liugang (60 1003. SH) Reorganization in the second half of the year. After 2007, Kungang reorganized and its production capacity expanded rapidly. "After they come in, we will have a production capacity of 36 million and 40 million. How did Baosteel merge me? It can't bite me. " Deng Qilin once said that WISCO's production capacity will reach 60 million tons during the Twelfth Five-Year Plan period.

Some people say that the rapid expansion of the "Deng Qilin era" only achieved the goal of avoiding being merged, but did not reverse the goal of being surpassed.

In the 20 15 Fortune Global 500 list, there are 8 steel enterprises in China, with WISCO ranked last and Baosteel ranked first. In 20 14, Baosteel's operating income was $48.32 billion and WISCO's was $23.72 billion.

In addition, during Deng Qilin's helm, WISCO's profitability (600005. SH), the core subsidiary of WISCO Group, declined overall. In 20 12, the net profit fell to a low of 21000000 yuan, and rose somewhat in 20 14 (12.57 million yuan), but the net profit in the first half of this year reached 522 million yuan, down 9.8 1% year-on-year.

In addition to the stubborn diseases in the company's development, the central inspection started in February this year and the subsequent inspection and rectification notice of WISCO exposed the internal management problems of WISCO one by one.

For example, there are no rules for selecting and employing people. Individual leading cadres engage in group gangs, and some cadres are "promoted with illness", which has a bad influence. For example, Sun Wendong, the former deputy general manager of WISCO, was transferred to Egang Company as the general manager after being audited in 2009 and was recommended as the representative of Hubei Provincial People's Congress.

For example, using "steel" for personal gain and amassing wealth. During the inspection and rectification, 42 leaders of WISCO reported that their relatives were doing business around WISCO; 29 1 1 projects were investigated, and 836 projects were found to be problematic, and 27 1 projects were suspected of black-box operation, interest transfer and leadership intervention.

For example, illegal decision-making and chaotic management have caused huge losses of state-owned assets. From 20 10 to 20 14, 4 1 of the company's 68 major projects are not collective decisions, accounting for 60%. In the decision-making process of WISCO Brazil MMX project, there are some problems, such as decision first and demonstration later, uncontrollable subsequent risks, and lack of overseas investment management system.

In June this year, when the Central Leading Group for Inspection Work reported the special inspection to WISCO Group, it put forward four suggestions, such as "especially managing the top leaders". This expression has aroused the infinite reverie of the public. After Deng Qilin's fall, in the media reports, these imaginations began to be "seated" one by one.

WISCO's "Deng Qilin era" has come to an end, but the remaining problems are undoubtedly a great challenge to his successors and WISCO.

Why did WISCO make this move when the regular employees transferred to the police station?

What happened on September 8 at WISCO Heavy Industry Group, a subsidiary of WISCO Group, may be written into the history of WISCO.

On the morning of the same day, 45 employees of WISCO Heavy Industry set off from the factory and went to Wuhan Chemical Industry Zone to be police officers. This is the first time in the history of WISCO to send employees to "go out" to serve the society. It was Ma Guoqiang who saw them off at the scene. He was the first "foreign" leader in WISCO history and was born in Baosteel.

In WISCO, the exact names of these 45 employees should be: redundant employees.

According to media reports, most of them are machine tools, modelers and welders. The youngest is 32 years old and the oldest is 52 years old. Because of the winter of steel and supporting industries, WISCO's heavy industry closed down and turned to units and production lines that sustained losses and lost hope, which greatly streamlined the labor force and produced many redundant employees; Some production lines are also because the contracts are not full, and the income of employees is not guaranteed.

It is understood that in the next step, Wuhan Chemical Industry Zone will provide more than 300 jobs such as police, security and property management, and absorb WISCO heavy industry employees. WISCO Heavy Industry will also explore other social channels and will send employees to serve the external market one after another.

Although they have changed from industrial workers in state-owned enterprises to social service personnel, their identity relations, wage relations and organizational relations remain unchanged.

Ma Guoqiang, chairman of WISCO Group, cheered for employees at the scene. He said that the optimization of human resources is a difficult problem faced by state-owned enterprises. Revitalizing and making good use of human resources and actively participating in local economic construction are not only conducive to personal development, but also an important contribution to WISCO's future competitiveness and society.

WISCO's employment reform is related to the increasingly severe industry situation and the business performance in the first half of the year. According to media reports, WISCO failed to meet the budget target at the beginning of this year and the business performance assessment target issued by the State-owned Assets Supervision and Administration Commission of the State Council from June to June this year, and suffered losses for the first time in June, and continued to suffer losses in July, and the losses intensified. Facing the crisis, reducing costs and improving labor productivity have become an important choice for WISCO.

The relevant person in charge of the Human Resources Department of WISCO said that at present, WISCO's labor productivity is only 1/3 of the world's advanced steel enterprises, and there is also a big gap compared with domestic advanced steel enterprises; At the same time, the labor cost of WISCO per ton of steel is about three times that of domestic advanced private steel enterprises.

On August 5th, WISCO issued the Notice on Comprehensive Response to Crisis, Survival and Cost Reduction. On August 14, WISCO Human Resources Department issued the Notice on Conducting Business Return Visit. Regarding the next direction of employment reform, the guiding ideology of WISCO human resources development is to increase business returns, improve labor productivity, strengthen personnel exchanges and transportation, and integrate into local economic construction.

Of course, for WISCO, human resource optimization is a very challenging task.

A remark made by Deng Qilin in an interview with the media on 20 1 1 may explain the labor cost burden of WISCO: WISCO is an old enterprise developed in the early 1950s with 654.38+10,000 employees. There are 73,000 employees, 20,000 retired, and retired home in less than two years, with 60,000 retired employees. There are more than 30 thousand collective workers, that is, WISCO's children have not been admitted to universities, and there are more than 30 thousand people who make a living by running their own businesses by WISCO. "100,000 people have to eat WISCO's food, but they can't directly push it to the society."

Breaking up with Liu Gang may affect "Life Project and Hope Project".

The foreign employees on September 8th were regarded by many as a step forward by WISCO in coping with the crisis. However, an announcement of Liugang (60 1003. SH) The next day, many people were worried about WISCO.

On September 9, Liuzhou Iron and Steel Co., Ltd. announced that it had received a notice from its controlling shareholder, Guangxi Liuzhou Iron and Steel (Group) Co., Ltd., which was jointly funded by Guangxi State-owned Assets Supervision and Administration Commission and Wuhan Iron and Steel Group, and recently held a shareholders' meeting, agreeing that Guangxi State-owned Assets Supervision and Administration Commission would withdraw from Guangxi Iron and Steel Group, and Liuzhou Iron and Steel Group would become a wholly-owned subsidiary of Wuhan Iron and Steel Group, with its registered capital reduced from 46.837 billion yuan to 8 billion yuan.

This marks that the cross-regional reorganization of Liugang and WISCO 10 has officially become history.

According to media reports, on June 38+February, 2005, Guangxi State-owned Assets Supervision and Administration Commission and WISCO Group signed the Joint Restructuring Agreement between WISCO and Liugang. In order to promote Fangchenggang Iron and Steel Project, both parties agreed to jointly establish WISCO Liugang (Group) Co., Ltd. (later renamed as "Guangxi Iron and Steel Group Co., Ltd."), with WISCO Group contributing 80% of the shares in cash and Guangxi SASAC contributing 20% of the shares in Liugang Group. The total investment of Fangchenggang project is estimated to be more than 200 billion yuan.

In March this year, Deng Qilin said in an interview with the media that this project is very important for the future development of WISCO. "Because WISCO is located in the middle reaches of the Yangtze River in the central region, it used to be a golden waterway and a thoroughfare of nine provinces. Up to now, our imported ore has reached tens of millions of tons, and we have to transport it from the seaside. Freight per ton 100 yuan. A year's import of10 million tons is10 billion tons, and 20 million tons is two or three billion tons. In the cold winter of steel, this is very uneconomical. "

In June this year, Ma Guoqiang became the chairman of WISCO. On June 15, 10 days later, Ma Guoqiang went to Nanning to visit Chen Wu, Chairman of Guangxi Zhuang Autonomous Region. Ma Guoqiang said that Fangchenggang is of great significance to WISCO, and WISCO's determination to build Fangchenggang steel project into a scale of 6.5438+million tons will not change. He hoped that the two sides would further strengthen cooperation, realize the smooth commissioning of the cold rolling production line as scheduled and reap benefits as soon as possible. The next day, Ma Guoqiang went to Fangchenggang Iron and Steel Base for investigation, stressing that Fangchenggang Iron and Steel Project is WISCO's life project and hope project, and is the future and opportunity for WISCO's development. Seize this rare opportunity to turn "building a world-class steel enterprise" from a slogan into a reality.

The reasons for the "breakup" were not disclosed by both parties. According to media reports, WISCO insiders said that Liugang's divestment is a normal phenomenon of business cooperation, and both sides have the freedom to cooperate or not. "The so-called twisted melon is not sweet, but our confidence and determination to build the Fangchenggang project will not change."

Some people in the industry even said: "WISCO and Liu Gang have never really merged, even lovers, saying that the divorce is over, and now it's just a return to reality."

After the "breakup" between Liugang and WISCO, the merger and reorganization of the steel industry has aroused the reflection of the insiders. Some people say that it seems that it is against the market rules to force mergers and acquisitions by administrative means. Although the formal reorganization and merger has been completed, it often leads to the result of merger and merger, which can not achieve the purpose of reducing excess capacity and improving the competitiveness of enterprises. However, some people say that the restructuring of China's iron and steel industry is still the general trend despite many difficulties.

Regarding Fangchenggang project, some people worry that WISCO, which operates the project independently, may be dragged down to some extent after Liugang withdraws. The first problem is money. "In addition, WISCO is not a local enterprise after all, and all aspects may not be as smooth as before." Some experts also believe that the "breakup" incident will not cause too much drag on WISCO, because the Fangchenggang project has always been under construction by WISCO, and the role of local governments in it is only to provide relevant support. After all, local governments will directly benefit from it.

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