The Sino Tan Joint Venture Textile Mill Has Been In Labor And Capital Conflicts For Many Years.

The government of Tanzania, as the second largest shareholder, has always emphasized that friendship "a href=" http://www.91se91.com/news/ "> textile mill < /a > must be a pure production enterprise. It has not developed the third industry and mixed operation. It should be a more profitable project." P "

< /p >

More than a year ago, the dyeing and finishing workshop of friendship textile mill outside Dar Es Salaam, Tanzania, in addition to doing its job well, Mgella, a front-line worker, had to work part-time outside p to feed his family. Even so, he and his wife and four children still had a tight life.

< /p >

In March 24, 2013, Chinese President Xi Jinping's visit to Africa began in Tanzania, and the joint communiqu of China and Hong Kong published yesterday. Chinese enterprises went out to Africa and entered a new era. P

Undoubtedly, many years of changes in the friendship textile factories which have been collided by Chinese and Western cultures and management systems through planned economy and market economy have more important reference and reference significance for Chinese enterprises to "go out" in the future.

< /p >

< p > friendship textile factory traceability < /p >

< p > Dar Es Salaam, located in a small bay on the west coast of the India ocean, was once the capital of Tanzania. After moving to the capital, it is still the de facto capital.

Along the Moro Goro Avenue, about 7 kilometres away from the city centre, there were crowds of Chinese architecture in the 70s of last century.

< /p >

< p > green brick and tile, gray small building, hollowed wall, as if back to the old China.

This is the friendship mill.

< /p >

< p > 1965, Tanzania's founding president Nyerere came to Beijing and asked China to build a textile mill for Tanzania.

At that time, China's diplomacy was vigorously developing Africa and promised Nyerere.

With the support of China's about 70000000 yuan interest free loan, the textile factory was built in the outskirts of Dar Es Salaam, named "friendship textile mill".

< /p >

P, 1968, when the friendship mill was put into operation, Edie, Saidi, claimed to have worked in the factory since then, and witnessed the ups and downs of the old factory.

< /p >

< p > as one of the five major state-owned enterprises in Tanzania, after being put into operation, the friendship textile factory is operated by local people. The Chinese provide guidance and technological pformation, but do not participate in management.

For a long time, it was a model project for China's assistance to Africa.

< /p >

< p > however, in the 80s of last century, the friendship mill was in a predicament.

As of 1992, the friendship mill lost a total of about 10000000 US dollars and was on the verge of shutting down production.

Lim Billy, deputy director of the printing and dyeing workshop. (G.

Limbili) retire early at this time.

< /p >

< p > when our reporter saw Lim Billy in a small village in southern Tanzania, he was already a 70 year old man.

According to his recollection, he chose to work in friendship textile mill, that is to say, the Chinese teacher helped manage the factory and made it profitable.

Later, however, the Chinese gradually walked away. The local people did not manage well, their attitude was lazy, and they did not follow the rules and regulations formulated by the Chinese people.

In 1992, he saw the factory basically shut down and returned home.

< /p >

< p > 1992, which is also a milestone in China's march towards the market economy. Since then, a visit by Vice Premier Zhu Rongji of the State Council in 1995 has directly promoted the restructuring of the friendship textile mill.

In front of the friendship textile factory, the company's full name, "Tanzania China joint friendship textile Co., Ltd.", and the blue label on the top of the porter 's "scientific management method in accordance with the law of the market economy", have witnessed the history of the reform.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

< p > according to the archives of friendship textile mill, in July 21, 1995, the friendship textile mill, which had been silent for three years, restarted.

At 10:45 in the morning, Zhu Rongji's motorcade arrived.

After inspecting the new equipment that China provided for the factory, he volunteered to make a speech and talked about his views on the status quo of the friendship textile mill.

< /p >

< p > Zhu Rongji's method is to engage in joint ventures.

He proposed to pform the friendship textile mill into a Sino Tan joint venture and hold the management power in the hands of the Chinese side.

He also wants to make the friendship textile mill tree a model for aid reform.

< /p >

< p > at that time, the Textile Industry Bureau of Changzhou, Jiangsu province (due to the subsequent change of the Bureau, hereinafter referred to as "Changzhou side") was technically pformed at the friendship textile mill. When Zhu Rongji condoled to the Chinese experts, he immediately named Changzhou to take over the friendship textile mill.

< /p >

< p > 1996, Sino Tan joint venture Friendship Textile Co., Ltd. began to operate.

The Chinese side pferred the about 70000000 yuan interest free loan to 51% shares, and the chairman and general manager was appointed by the Changzhou side. The 49% party owned by the Tanzania party was sent by the Ministry of finance, and the deputy general manager was also appointed by the Tanzania party.

< /p >

< p > Barraza (Baraza) is the deputy general manager of friendship textile mill under such equity arrangement.

At that time, he worked as a general manager in the next Wu Peng Ge textile mill, and when he met him in the office, he was over 60 years old.

In the same way, the former state-owned enterprises were pformed into a joint venture run by the market.

The Chinese side took over the management so that the friendship textile mill avoided bankruptcy until today.

< /p >

< p > up to 2012, the friendship textile mill after the reform produced more than 100 million meters of cloth and achieved about 100000000000 Tanzania shillings (hereinafter referred to as "shillings").

Because of its reliable quality, most of the cloth produced by Youyi textile mill is in short supply in most of the time, and its current market share is about 10%.

Taking kkang as the main product, the market price has risen from about 600 shilling / m in 2006 to about 2300 shillings / meters in 2011.

< /p >

< p > friendship textile factory has also created considerable social benefits for the local people.

Over the past more than 10 years, the company has paid taxes to more than 20 billion shillings to the Tanzanian government, which is already a large tax payer in poor Tanzania.

The company pays wages and benefits to more than 20 billion shillings, providing about 2000 jobs at most.

< /p >

< p > the biggest achievement of friendship textile mill is not the above tangible assets, but the intangible value.

At present, the friendship textile mill is the only remaining overseas textile enterprise since the implementation of the market-oriented reform of foreign aid in 1995.

In the same period, the Zambia cotton mill, which was built in the same period with the friendship textile mill, has closed down. When the reporter visited, the factory gate was closed and the weeds grew.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

< p > plan and market < /p >

Although the P friendship textile mill has been brought back to life, it has not lost its profit, but has had more trouble.

In addition to profitability after the first year of restructuring, the company suffered losses in successive years.

< /p >

Between P and 2007 to 2011, the friendship mill lost 1 billion 500 million to 2 billion 500 million shillings a year.

In 2011, the company stopped production for several months due to the supply of cotton (20140, -50.00, -0.25%) (main raw material of textile industry), and once to the end of production. In 2012, the company continued to lose money.

Over the past decade, the company has accumulated a deficit of nearly 20 billion shillings, which has exceeded the share capital according to the current exchange rate.

< /p >

< p > according to the audit of a Chinese domestic firm, the total assets of the friendship mill are about 26 billion shillings, with a liability of about 30 billion shillings, with a debt rate of 115%, which is insolvent.

Net assets are about 4 billion shillings, indicating that the company is operating in debt and is mainly dependent on long-term loans (and interest free).

< /p >

< p > according to the statistics of a local consulting company, the friendship mill's book assets after deducting depreciation account for about 34 billion shillings.

Even with this caliber, the debt rate is very high.

< /p >

< p > a company that has been favored by the market but has been losing money and operating in debt for a number of years. Why? < /p >

< p > we should admit that the general direction of marketization is right.

However, the subsequent employment policy of friendship mill directly laid the foreshadowing for the subsequent long term labor disputes.

< /p >

< p > a litigant described the situation in this way: in 1996, the Changzhou side just took over the factory and was not familiar with the situation of the old workers. It also dealt with the employment problem according to the traditional way of state-owned enterprises.

After the reform, the friendship textile mill took over the policy of about 2000 old workers in the old factory, and enjoyed unlimited fixed labor treatment.

Among them, those who are sick, old and weak, and troublemakers.

< /p >

< p > the original employment plan is only 1250.

These 2000 old workers are not only far from the employment plan but also become a heavy burden, and they themselves become unstable factors in the friendship mill.

< /p >

After the operation of the friendship mill, P has not been fully marketed.

For example, the Tanzania government, the second largest shareholder, has always stressed that the friendship mill must be a purely productive enterprise, and it does not develop the third industry and mixed operation. This should be a more profitable project.

< /p >

< p > this reporter can feel the intense conflict between the market and the plan everywhere in the letters between the government departments and friendship textile factories and the strong representative of the representative government of the board of directors. This also makes it unable to do anything in the market and plan, laying a foreshadow for the long term predicament.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

< p > technical pformation problem < /p >

After P's short profit, the friendship mill has seen a big loss since 1998.

In the face of losses, both the management of the company, the board of directors and the governments of both sides are trying to turn a profit.

< /p >

At the beginning of the P, the parties believed that the main reasons for the loss were backward technology, outdated equipment and low product quality.

Since 2001, the friendship textile mill has started the technological upgrading of the total cost of about 100 million yuan, which is known as the "two phase technical pformation" internally.

However, the actual obstacles prevented the two phase of technological pformation from achieving the desired results.

< /p >

< p > from the table of the implementation of the two phase of technological pformation, we can find that in the process of implementation, the funds invested by the departments of spinning, weaving and Yin Ransan are not balanced.

< a href= "http://www.91se91.com/news/index_c.asp > > spinning < /a > compared with the investment in weaving, the budget has been greatly reduced -- the budget allocated to the weaving fabric is more than 2500 yuan, the actual use is only 30%, the original planned air-jet loom has not been implemented, and the about 30000000 yuan budget originally allocated to spinning is useless.

On the contrary, printing and dyeing, the budget is about 20 million yuan, actually overspending, far more than spinning and weaving.

< /p >

< p > the impact of the imbalance in the use of funds can be seen from the mechanic Edie.

When the reporter saw him again in the printing and dyeing workshop, the factory was the busiest afternoon.

The two shops of spinning and weaving were roaring and crowded, but the huge printing and dyeing workshop was quiet. All the machines were idle, with only a few workers sitting idly.

< /p >

< p > Saidi calls himself "machine chieftain" and has a say in the machine.

In his view, "the two phase of technological pformation" has improved the performance of the printing and dyeing department, and the printing and dyeing process has increased rapidly and output has increased.

The problem is that the other two sectors (spinning and weaving) are too slow, the output is too low, and the new machines of the printing and dyeing department have to wait for old machines such as spinning and weaving.

More machines have been idle, such as dyeing machines, mercerizing machines, etc.

< /p >

< p > and our reporter checked the factory date of the printing and dyeing machine, and found that many of them were relatively new.

For example, the printing machine is the "1620mm" and "1850mm" produced in 2000, and has been technically reformed.

The spinning and weaving workshop concentrates most of the old equipment.

For example, carding machine is the "A186H model" produced in 1979, and it is an old machine for more than 30 years.

Many machines are idle because they are too old or damaged.

< /p >

It is a long-standing contradiction between labor and capital that "P" actually counteracts technological pformation results.

After the technological pformation, the production capacity of the factory has increased a lot. However, the new machine is increasing in scale efficiency. That is to say, the longer the machine runs, the lower the proportion of fixed cost, the higher the gross profit.

This requires workers to work overtime.

However, activists from trade unions and workers use their influence to encourage workers to refuse to work overtime, to slow down or strike.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

The failure of the introduction of turbogenerator is a typical example of P.

< /p >

P, like many other African countries, is short of electricity in Tanzania, often blackouts. In 2003, Tanzania suffered widespread electricity shortages.

Therefore, the company spent about 15000000 yuan to buy 1500 kilowatts turbo generator sets and matching equipment at several times the budget price, so as to solve the problem of electricity consumption.

However, it takes three or four hours to turn off the turbine.

That is to say, it must work 24 hours a day to maximize its effectiveness, otherwise it will cause great waste if it is switched off.

< /p >

< p > in order to adapt to the new machine, the management tried to change the scheduling system, and tried to pay high overtime wages 12 hours a shift and two shifts.

However, this was strongly opposed by the union of textile mills, and at last, the union made a set of 8 hours and a single class.

More and more workers are going to work.

< /p >

< p > of course, the trade union has another set of views on this matter.

In the view of trade unions, it is not worthwhile to work overtime to pay high overtime, because overtime damages the health and violates the law.

Now, the steam turbine has been damaged. In Africa, because of the low labor quality and the heavy reliance on imported parts and components, the depreciation of the equipment is astonishing, and things will often be damaged in a short time.

< /p >

< p > not only is the steam turbine, but the efficiency of the whole plant is very low.

Since the completion of the "two phase technical pformation", the utilization rate of the machines in the three major workshops of spinning, weaving, dyeing and printing is only three or four. The main reason is that it is impossible to shift work, but the root is the contradiction between labor and capital.

< /p >

< p > labor conflict < /p >

< p > speaking of labor conflicts in friendship mill, we must mention two important events in the company's history: "10 thousand lawsuit" and "150 thousand lawsuit".

These two lawsuits are the two "mountains" on the friendship textile mill, and they are also the concentrated expression of the tension between labor and capital relations.

It reflects the common problems faced by Chinese enterprises in overseas investment, namely, the contradiction between labor and capital, and the incompatibility of labor laws, cultural habits and even language in the host country.

< /p >

< p > "10 thousand cases" refers to workers who claim that the company pays less for them every month.

In 1998, the president of Tanzania gave a speech to commend the friendship textile mill. "Wages of 60 thousand shillings a month bring good wages and benefits to workers."

The president's praise is a great compliment.

However, the workers seized the president's speech and said separately the details of "wages and benefits", which required the company to "renew" the 10 thousand shilling welfare allowance on the basis of the 60 thousand wage that the president referred to was only the basic wage.

< /p >

After P, workers fought against management, in the form of sabotaging, protest and even strikes.

It was not until the representative of the Tanzanian government made a special trip to the friendship textile mill to convene the staff meeting that the storm was temporarily put to an end.

But the seeds of differences are also buried.

< /p >

< p > and the storm has not subsided.

In 2004, workers began to pursue this "arrears"; in 2006, the trade unions formally sued the management of the local court for "10 thousand shilling allowance per month".

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

In P, vague language in the contract becomes the focus of controversy.

According to Chinese management, when they were converted from the old factory into a new factory, they sent a notice of employment to each employee, to the English version of the management and to the Vasily language version of the workers (Note: Tanzania official language).

The contract reads, "workers have 10 thousand shilling subsidies per month, which are included in wages".

However, according to the grammar of sage, it can be understood as not being included in wages.

The loophole was caught by the trade union.

< /p >

< p > Trade Union believes that although the contract versions of English and sexist are different, the legal validity of the two parties is the same.

According to the chairman of the trade union, management has also indicated to them that the difference between the two languages is "no matter".

This also naturally makes the trade union choose a favorable version of its own language.

"If the factory can correct mistakes immediately, things will not be as big as they are today."

The chairman of the trade union said to our reporter.

< /p >

< p > the case has undergone many twists and turns.

In 2008, the Supreme Court decided that the management should lose 10 thousand of the monthly allowance of 1 billion 500 million shillings (about 6 million yuan).

In October 2011, management was forced to pay the money to workers.

However, in the view of the trade union, "the factory is taking its own fruit".

< /p >

< p > a wave is not smooth.

What makes management feel more pressure is another 150 thousand lawsuit involving about 5 billion shillings (about 20 million yuan).

This directly threatens the cash flow, the lifeblood of the friendship mill.

< /p >

< p > "150 thousand lawsuit" began in 2007.

In those days, the government suddenly raised the minimum monthly wage of the textile industry from 60 thousand shillings to 150 thousand shillings, plus 65 thousand shilling allowance.

At that time, it meant a monthly income of 1000 yuan, much higher than the local income level, and also more than the local textile enterprises' affordability.

In the protest of the textile industry employers, the government announced that the exemption order of 20 textile enterprises including friendship textile mills could not carry out the 150 thousand minimum wage.

< /p >

Beyond P, the exemption order was strongly opposed by the trade union.

The Trade Union joined the Tanzania government and the friendship textile factory to the court on the grounds of the exemption order.

< /p >

< p > compared with the "10 thousand lawsuit", the "150 thousand lawsuit" is full of drama, and both employers and employees are attacking each other in the continuous appeal and prosecution.

At the end of this reporter's interview, the case is still under trial, but it can basically be judged that management will lose.

Although in April 2010, the tanshin government re established the minimum wage as 80 thousand shillings, the management still had to pay 150 thousand shilling monthly salary and 65 thousand shilling allowance within the time limit.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > style= "margin: 0cm 0cm 0pt"; "class=" MsoNormal "> span" span "(85, 85, 85);" Microsoft ";"

< /span > < /p >.

Less than P, two lawsuits lost, bringing huge indemnity, which is undoubtedly adding to the loss of the friendship mill.

Management admitted to this reporter that this makes the capital chain of enterprises under great pressure, and cash flow has fracture risk.

However, in the eyes of the trade union chairman, if the company closes and closes and fails, it will be a problem for the factory. However, it is better to close the door and pay the wages owed by the factory.

< /p >

< p > however, although the Union won two lawsuits, the workers did not get any benefit because of the poor efficiency of the enterprise.

Labor and management are more antagonistic because of two lawsuits. Production can not be carried out smoothly, and wages have never been up.

This is the "double lose" situation of labour and capital.

< span style= "font-family: song body; font-size:small >".

< /span > < /p > < p > < span > style= "font-family: song body; font-size:small >".

< /span > < /p >.

At present, friendship textile factory is seeking strategic reorganization to revitalize P.

In fact, the friendship mill has always had an excellent asset -- lots.

The factory area is very large, and the gateway to the main road that keeps in and out of the city is like Guanzhuang to Beijing or Jiangqiao to Shanghai, which is suitable for real estate and logistics development.

If this asset can be revitalized, the friendship textile mill will hopefully revitalize once again, and form a comprehensive enterprise that integrates textile, real estate and logistics.

< /p >

< p > our reporter learned that there has been a clear intention of China's domestic "a href=" http://www.91se91.com "private enterprise < /a > to acquire shares of friendship textile mill.

However, for various purposes, the Tanzania government and Congress have delayed or obstructed the friendship textile mill.

In the board of directors, the representatives of the Tanzanian government also had lengthy and inefficient discussions with Chinese directors.

< /p >

Since P, the reorganization has been discussed for several years without substantial progress.

< /p >

< div style= "left: -1000px; top: 365px; width: 1px; height: 1px; overflow: 1px;"