Enterprise Transformation and Upgrading Underway—A Report on Shandong Company’s Efforts to Streamline Operations and Stabilize Its Skilled Workforce

Release Date:

2015-09-21 20:32

As the broader wave of industrial transformation and upgrading gains momentum, Shandong Company has aligned itself with market demands and, in light of its own circumstances, launched the “Workshop Management Reform Plan” in June and the “Implementation Plan for the Provision of Technical Allowances to Highly Skilled Workers (Trial)” in July. The introduction of these two initiatives has provided robust support for the company’s survival and growth, the stability of its workforce, and the continuous enhancement of employee competencies.

The “Workshop Management Reform Plan” consolidated the work teams in the light‑steel workshop, reducing the original 11 teams to the current six. Following the consolidation, the number of frontline supervisors was cut from 16 team leaders and deputy leaders to 10 team leaders. The implementation of this plan has effectively reduced the company’s labor costs and optimized resource allocation; the streamlining of teams has also enhanced overall management efficiency. After the merger, team leaders are appointed through a competitive bidding process open to all employees in the Manufacturing Department, fully embodying a management approach that promotes capable personnel, demotes the mediocre, and weeds out underperformers—ensuring the workforce is truly lean and efficient. In terms of employee compensation, significant adjustments have been made: a strict team‑contracting system has been introduced, with contract fees allocated to each team and performance evaluated based on skill level and output, or measured against set piece‑rate quotas. This has widened wage differentials, overturning the inequitable “equal pay for all” arrangement and rewarding hard work, thereby boosting employee motivation. The plan also calls for strengthening incentives and penalties, formulating effective reward and discipline policies, and enforcing rigorous workplace conduct.

The issuance of the “Implementation Plan for the Provision of Technical Allowances to Highly Skilled Workers (Trial)” is an effective measure to stabilize the company’s existing technical core, retain both veteran and emerging skilled professionals, and foster a positive, competitive work environment across the organization—one characterized by mutual learning, emulation, assistance, and striving for excellence. The technical allowance is graded into four levels: Special Grade, Grade I, Grade II, and Grade III. All employees on the production lines, including team leaders and quality inspectors, are eligible to participate in the evaluation process. Evaluations are conducted every six months, starting at Grade III; high‑performing skilled workers may advance through the tiers sequentially. This platform is open to every production‑line employee, ensuring equal opportunities to showcase their abilities, which effectively boosts motivation and encourages staff to focus on enhancing their quality‑related skills, thereby playing a constructive role in elevating the overall competence of the enterprise’s workforce.

In accordance with the examination and evaluation requirements set forth in Article 4 of the plan, the Manufacturing Department organized the first round of evaluations in August. The company established an examination and evaluation panel, chaired by Gao Yanbin, the head of the Manufacturing Department; co-chaired by Managers Chen Xinghai and Qin Duqun; and comprising three members: Zhao Bin, Kong Xiangbing, and Cheng Xugang. The assessment was conducted through practical on‑the‑job examinations, based on the criteria outlined in Article 3. In addition to meeting the required skill standards, strict criteria were applied to daily work performance. This round of evaluations resulted in the selection of three Level‑3 welders and two Level‑3 riveters, for a total of five individuals. Starting in August, these five highly skilled employees will receive a technical allowance in accordance with the applicable stipend schedule. The introduction of this technical allowance has greatly boosted the morale of our skilled professionals and provided ordinary technicians with clear goals to strive toward.

The key to an enterprise’s long-term survival and growth lies in enhancing its core competitiveness, which ultimately comes down to talent management. Cultivating and building a pool of highly skilled technical workers—such as welders and riveters—is the fundamental guarantee for our manufacturing company to maintain consistent quality and elevate product standards. The implementation of these two initiatives has not only stabilized our workforce and addressed talent‑reserve challenges but has also effectively reduced production costs, marking a creative step forward in our corporate transformation and laying a solid foundation for the company’s steady development.

Director Lu Jiande of the Shaoxing Municipal Center for Promoting Building Industry Modernization, accompanied by his delegation, paid a visit to our company for inspection and guidance.

Chairman Chen Bailiang of the Group’s Board of Directors and other executives paid a courtesy call on Cai Huaxiang, Deputy President of the Agricultural Bank of China.

Director Lu Jiande of the Shaoxing Municipal Center for Promoting Building Industry Modernization, accompanied by his delegation, paid a visit to our company for inspection and guidance.

Chairman Chen Bailiang of the Group’s Board of Directors and other executives paid a courtesy call on Cai Huaxiang, Deputy President of the Agricultural Bank of China.