I'm back in 1990

Chapter 1017: Guarantee Clauses

A few days later, while Huang Xiaochuan was processing relevant documents, Gao Song came to report to him.

"Mr. Huang, there are results regarding your request for all our group and holding companies to conduct due diligence on all our partners."

Upon hearing this, Huang Xiaochuan threw his pen on the table: "Speak!"

"According to statistics, 83 of the suppliers or partners who cooperate with our various groups and holding companies do not meet our requirements in terms of salary and social security contributions."

Huang Xiaochuan nodded, as this was within his expectations, and he immediately gave instructions.

"We hereby inform all our groups and our holding companies that, starting from January 1st next year, all our supply chain partners must comply with our relevant requirements."

With the assistance of the legal department and the human resources and procurement departments of each group, the requirements for selecting partners have been formulated and are just waiting for Huang Xiaochuan's final approval before being sent to all relevant supply chain partners.

Huang Xiaochuan can't control what others do, but the group and holding companies he controls must do the same.

The requirements for partners are actually not many; simply put, partners must protect the rights and interests of workers.

For example, issues such as wage arrears, employee outsourcing, employee benefits, and whether social security is paid in full will result in the partner being kicked out of the supply chain system if any of these behaviors are found and the company refuses to rectify them.

The group companies and holding companies controlled by Huang Xiaochuan never default on payments to their supply chain partners, and the contracts they sign are not unfair or domineering. They do not engage in the kind of overbearing practices where they reap the benefits while leaving others with nothing.

All of them signed contracts with favorable terms based on the principle of mutual benefit, with the intention of developing together and benefiting society. However, the vast majority of partners are extremely selfish and have not treated their employees as Huang Xiaochuan had hoped.

This greatly disappointed Huang Xiaochuan, who then decided to take drastic measures: signing mandatory clauses requiring all supply chain partners to respect and protect the rights of their employees.

If that cannot be done, then the contract will be terminated and cooperation will cease.

Anyway, there are plenty of companies that want to enter this supply chain. The reason is simple: the cooperation conditions offered by the group companies and holding companies controlled by Huang Xiaochuan are very generous, so everyone wants to establish long-term cooperative relationships with these companies and groups.

Coincidentally, Li Wenbo's father's company, Xuri Electronics, happens to be a supply chain partner of Hengtong Technology, a holding company under Huang Xiaochuan.

The two parties have been cooperating for many years, and Li Wenbo's father, Li Xu, has made a fortune as a result, accumulating a certain level of wealth. However, this wealth is based on third-party outsourcing, paying social security contributions at the minimum standard, and disregarding the rights and interests of employees.

Soon, Sunrise Electronics received a notification from Hengtong Technology regarding the "Supply Chain Partner Employee Protection Terms".

Several senior executives were gathered in Li Xu's office at this time.

The HR manager complained to Li Xu with a worried look on his face: "Mr. Li, Hengtong Technology is serious this time. Their HR director, Lao Zuo, personally called me and demanded that we not use outsourced employees, but must sign labor contracts directly with employees, and must pay social security and housing provident fund contributions in full, as well as paid annual leave, etc. This has almost completely negated our current employment model."

Li Xu looked at his finance manager.

The finance manager quickly added, "If we follow Hengtong Technology's requirements, our labor costs will immediately increase by 40%. The key issue is the annual salary adjustment, which will significantly reduce our net profit."

Read "1990, I'm Back" and enjoy your reading time.

Upon hearing that raising employee salaries would reduce company profits, Li Xu was furious; it was tantamount to robbing him of his money.

So he was furious: "Hengtong is talking without understanding the situation. Have we been supplying them with goods all these years had quality problems or delivery delays? Now that they've made the lion's share, they're eyeing our meager profits? How we divide it is none of their business!"

"Bang!" He angrily threw a folder on the ground.

He then instructed, "Ignore him. Let's stick to the old ways. We've been cooperating for so many years. Hengtong might not be able to do without us. Don't they consider the losses they'll incur if they switch suppliers?"

However, he still instructed the sales manager in charge of product sales: "Tian Fang, contact Director Wang of Hengtong and invite him out for a chat. I'll treat."

"No problem, I'll contact them right away." The sales manager immediately made the call.

In their view, this was nothing more than a bluff, a mere formality.

In their view, this was nothing more than a bluff, a mere formality.

Therefore, the entire Sunrise Electronics company, from top to bottom, did not pay attention and continued to do things their own way.

In fact, the supply contract signed between Hengtong Technology and Sunrise Electronics is extremely generous, because Huang Xiaochuan has always required his companies to treat their partners well and voluntarily give up profits to support them in order to achieve common growth.

Therefore, the actual profit margin of the contracts obtained by Xuri Electronics is very high. Otherwise, Xuri Electronics would not have grown from a small company with assets of a few million to an industry company with assets of hundreds of millions.

People these days! Once they have a little money, they forget what they used to do.

In order to maximize profits, Xuri Electronics continued to require workers to work overtime to complete order tasks and refused to increase manpower. In fact, Hengtong Technology provided a very generous delivery time, but Xuri Electronics also accepted some orders from other companies. For the reasons mentioned above, the labor intensity of the factory workers did not decrease at all.

Moreover, attendance is extremely strict. Being even a minute late will result in a deduction of half a day's wages. If you forget to clock in, you will also be deducted double your daily wage. As for the meager 300 yuan monthly full attendance bonus, you will obviously miss it as well.

In order to continue to avoid the responsibilities and costs associated with directly signing labor contracts, Xuri Electronics outsourced a large number of auxiliary positions to an outsourcing company. The legal representative of this company was actually his brother-in-law, Li Wenbo's uncle.

The HR manager of Sunrise Electronics believes that their company is located in the region with the most abundant labor force in China, so they have no trouble finding suitable workers.

After Li Xu got home, he complained about the incident to his wife. Coincidentally, Li Wenbo came home for the weekend and also heard about it.

He was, of course, firmly on his father's side: "Why should he? A mere notice can't dictate what to others. That's ridiculous!"

When they saw their outstanding son, Li Xu and his wife's eyes were filled with doting affection.

Their son has been the envy of others since he was a child. From birth to school, he has hardly had to worry about anything. Li Xu is working so hard to create the best business empire for his son and hand it all over to him in the future.

So when Li Xu saw Li Wenbo, he asked him, "You'll be a senior next year. What are your thoughts on studying abroad?"

Sending Li Wenbo abroad was something the family had been discussing. Originally, Li Wenbo had agreed to go abroad for further studies, but recently, for some reason, he has become hesitant about studying abroad.

Li Wenbo discussed with his parents, "How about we wait a little longer? It's only the first semester of our junior year, we still have plenty of time."

As the saying goes, you know your own child best. Seeing Li Wenbo like this, Li's mother guessed some of the reasons.

"Do you have a girlfriend?"