Siheyuan: I am different He Yuzhu

Chapter 457 State-Owned Enterprise Management Committee

After finishing the call with Minister Wang of the Ministry of Agriculture and Reclamation, He Yuzhu called the office of Minister Wu of the Ministry of Metallurgical Industry. After the call was connected, he said, "Hello, Minister Wu, this is Xiao He from the Red Star Steel Plant."

"Xiao He, you're back from Western Region Province!" Minister Wu's familiar voice came from the microphone.

"Yes, Minister Wu. I just arrived in Sijiu City yesterday. How have you been recently?"

"I'm doing fine recently, but you, Xiao He, haven't come to my house for a long time. I haven't eaten the food you cooked, Xiao He, and the glutton in my stomach is kind of rebelling!" Minister Wu said with a smile on the phone.

"Then I will go to your house this weekend and teach those greedy people in your stomach a lesson. I will definitely suppress their arrogance."

"Then I look forward to your visit, Xiao He."

After exchanging pleasantries with Minister Wu for a while, He Yuzhu got back to the point, "Minister Wu, I want to ask you for someone?"

"People? What kind of people?" Minister Wu asked curiously.

"There is a man named Su Xingbei in Qindao City, Qilu Province. He is now a teacher at Qindao Medical College."

"A teacher at the medical school, is he a doctor? Why does your steel plant need a doctor?" Minister Wu asked in confusion.

"He is not a doctor, he is a meteorologist who is proficient in mathematics and physics. I want him to come to our factory to help guide our automobile production and steel smelting work."

"Xiao He, is there something wrong with this person's identity? How do you know him?" Minister Wu asked straight to the point.

"Yes, Minister Wu, this person's identity is indeed a bit problematic. He was identified as an extreme rightist in October 1958, but I feel that his problem should not be that serious. It may be that the local authorities did not handle his personal issues properly. This person is a senior of a doctor in our factory. He recommended him to me. After hearing about his deeds, I feel that talents like him should play a greater role in national construction, rather than being controlled across the board."

"Then what do you plan to do with this Su Xingbei in your factory?"

"I plan to use his huge mathematical calculation ability to help our factory's engine research and development and the smelting of new steel."

After listening to He Yuzhu's words, Director Wu on the other end of the phone was silent for a moment and then said, "Xiao He, regarding the transfer of Su Xingbei to your factory, I need to understand Su Xingbei's personal situation first. If he is sure that there is no major problem, then I will transfer this person to your factory."

"Thank you very much, Minister Wu."

"By the way, Xiao He, the Central Committee is currently drafting the Regulations for the Work of State-Owned Industrial Enterprises. The regulations stipulate that each enterprise can only have one administrative department in charge. There cannot be multiple leaders. The special situation of your factory has caused a dispute between the Ministry of Metallurgical Industry and the First Ministry of Industrial Machinery. How do you think your factory should handle this?"

"Minister Wu, I want to hear the department's attitude first. As a subsidiary company, we don't seem to have a say in this matter!"

"You little rascal, your Red Star Steel Plant is a large-scale key steel enterprise that ranks among the best in the country! For this reason, your plant must be managed by the Ministry of Metallurgical Industry, there is no doubt about it. However, your plant also has a Red Star Machinery Manufacturing Plant, and under your leadership, this Red Star Machinery Manufacturing Plant has become the largest automobile manufacturing plant in the country, so automobile manufacturing falls under the jurisdiction of the First Industrial Machinery Department. According to the opinion of the First Industrial Machinery Department, they think that the Red Star Machinery Manufacturing Plant should be separated from the Red Star Steel Plant and directly under their leadership."

Minister Wu paused for a moment and continued, "To be honest, there is no big problem with this division, but the most important thing is that I can't bear to let you go. I don't want you to go to the First Industrial Machinery Department. And the First Industrial Machinery Department is also reluctant to let you step down from the position of director of the Red Star Machinery Manufacturing Plant."

"I didn't expect that I would become such a popular figure all of a sudden. Minister Wu, the question you just raised was a bit too sudden. I was really caught off guard and didn't know how to give the most appropriate answer for a moment. From my personal perspective, now that the Red Star Machinery Manufacturing Plant and the Red Star Steel Plant have achieved integrated development, there are indeed many benefits. On the one hand, the strong combination of the two can bring huge advantages in resource integration, technology sharing, etc., and improve overall production efficiency and product quality; on the other hand, it is also conducive to the formation of economies of scale in enterprise development."

"However, from an administrative management perspective, the two plants do need to be managed effectively by two separate departments. After all, each plant has its own unique operating model and management needs, and separate management can better carry out refined operations based on their respective characteristics."

"If I must give a specific suggestion, I think we can set up a special state-owned enterprise management committee in the State Council. This committee will shoulder the responsibility of managing all enterprises under the management of ministries and commissions, and become the "head of the family" of these enterprises. Ministries and commissions will only exist as administrative organs. They will only need to focus on administrative affairs, such as policy formulation, supervision and implementation, and will no longer directly interfere in the specific business activities of enterprises."

"In this way, we can ensure that enterprises are properly managed and guided at the administrative level. When enterprises need to consult their superiors about problems in their business activities, they only need to find the State-owned Enterprise Management Committee, and this department will help the enterprises coordinate and solve the corresponding problems. Minister Wu, what do you think of my idea? I hope it can be of some inspiration to you."

After hearing He Yuzhu's idea, Minister Wu was stunned. When he came to his senses, he quickly asked with great interest: "Xiao He, your idea is very novel. Can you tell me more about it?"

He Yuzhu thought for a moment and continued, "The current enterprise management policy implemented by the country is that different ministries and commissions manage enterprises in their respective industries, but in actual operation and production, enterprises often need to cooperate with many enterprises. Take our steel plant as an example. The coal needed for steelmaking needs to be provided by enterprises under the Ministry of Coal Industry, and the steel made by our steel plant will be provided to factories under the First Industrial Machinery Ministry or factories managed by other departments. In this process, it is inevitable that the design ministries and commissions will communicate and coordinate directly with each other."

"The goal of my proposal to set up a state-owned enterprise management committee is to separate the management rights of enterprises from administrative management rights. The state-owned enterprise management committee is responsible for supervising and guiding the production and operation of enterprises. To put it bluntly, it is to supervise the operation of enterprises and the coordination and connection between different enterprises. Administrative problems encountered by enterprises in operation, such as whether the products produced by enterprises meet national standards and products that need national appraisal, will be managed by the corresponding ministries and commissions at this time."

"I understand what you mean. If we follow your suggestion, the problem of your head office and branch factories belonging to different ministries will no longer exist. Each ministry only needs to be responsible for its own duties. Our Ministry of Metallurgical Industry will formulate corresponding plans based on the requirements of national industrial development, and then issue the plans to the State-owned Enterprise Administration Committee, which will organize relevant enterprises to implement them. The State-owned Enterprise Administration Committee manages all enterprises, which makes it more convenient when different enterprises need to cooperate with each other." Minister Wu continued following He Yuzhu's words.

"Minister Wu, you are right. For example, if our factory opened a pig farm, according to regulations, pig farming belongs to agriculture, then should the pig farm be managed by the local agricultural bureau? This involves the issue of the administrative department of the enterprise. Similarly, our steel plant relied on the support of the superiors and its own capabilities to establish a farm in the Western Region Province. When the scale of this farm expands, it will inevitably involve the issue of administrative management."

"Xiao He, the situation you mentioned does need to be considered. The suggestion you made today is very good. I will report your suggestion to the relevant leaders. If it is feasible after discussion, we can first integrate the enterprises managed by the ministries and commissions and use it as a pilot to see how the effect is. If the effect is good, we can further promote it to the whole country."

"Minister Wu, if you are sure you want to promote it, I suggest that you start with ordinary civilian industries first, and don't involve special industries such as military factories. It is better for these industries to be managed by the original ministries."

"Okay, I get it. Xiao He, do you have anything else to do?"

"No, I have already reported everything I need to report to you."

"Then let's stop here for today, and we can talk further when we meet at the weekend."

"Okay, Minister Wu, goodbye." Minister Wu hung up the phone as soon as He Yuzhu finished speaking.

He Yuzhu slowly put down the phone in his hand. The hand holding the receiver seemed to weigh a thousand pounds and trembled slightly. His eyes revealed a trace of confusion and contemplation, and his mind kept replaying the "Work Regulations of State-owned Industrial Enterprises" that Minister Wu had just mentioned on the phone.

He savored every word, as if it was a mysterious key that could open the door to the future development of the enterprise. He secretly thought that this might be a change that would affect the fate of the enterprise. It is expected that after the regulation is officially implemented, it will make clear and detailed provisions for the business operations of enterprises. By then, the autonomy of enterprises may not be as free as in the past. Every decision and every action may need to be reported to the higher authorities. Without the approval of the higher authorities, enterprises can only carry out their business activities in accordance with the tasks and plans issued by the state. The days when they could play freely and innovate independently seem to be gone forever.

Just like the Dodge truck imitation work that was carried out in full swing at the Red Star Steel Plant before, it was the result of the hard work and wisdom of countless workers. Now it seems that it will not be feasible for the company to independently carry out similar imitation work in the future. Thinking of this, He Yuzhu couldn't help but sigh softly in his heart, and the sigh was mixed with helplessness, regret and a little worry about the future.

From his unique perspective as a "future man", this work regulation will undoubtedly have a certain restraining effect on the development of enterprises, like putting a heavy yoke on the originally surging river of enterprises. However, when he calmed down and started from the current actual situation, he had to admit that the introduction of this work regulation was very necessary. After all, its introduction is definitely to deal with the various thorny problems faced by current industrial enterprises in operation. Only in this way can we ensure that enterprises can develop normally and orderly on a stable track and avoid chaos and disorder.

He Yuzhu stood up and paced back and forth in the room, his thoughts surging like a tide. He knew very well that the impact of this work regulation was not limited to the present, it was very likely to change the ecological environment of the entire industrial enterprise, and even have a profound impact on the development of the social economy. He secretly made up his mind to pay close attention to the follow-up development of this regulation, actively find countermeasures, and do his part for the future development of Red Star Steel Plant and Red Star Machinery Manufacturing Plant.

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