DPCA restart employee competition

First finance and economics reporter learned exclusively that DPCA (hereinafter referred to as “DPCA”) has recently restarted its staff competition for employment. This time, it is aimed at front-line employees, involving a total of more than 5000 employees. Relevant people from various departments of DPCA said that it would reduce its staff by more than 30%, but this figure has not been officially confirmed by DPCA.
According to an internal notice provided by a person from the manufacturing department to the reporter, the technical personnel of the branch “came out of the list” on May 8 and the “fixed list” on May 15, and then the team leader and maintenance workers began to carry out the work. The person explained that “making a list” means defining the number of posts, and “setting a list” is to determine the list of people who are on duty and who have been laid off. The competition for the appointment and reduction of staff is operated by each department itself, and finally those who have no posts are submitted to the personnel department.
The notice also showed that the competition was conducted by some combinations of six evaluation tools, namely year-end evaluation, peer evaluation, superior evaluation, theoretical test, team ranking and attendance rate. The competitive employees can choose to terminate the labor contract, stop work or transfer to Chengdu factory. If the above three options are not accepted, the salary of the candidates will be paid in full in April, the basic salary plus annual merit salary (part of the salary calculated according to length of service) will be paid in May, and will be paid after June according to the epidemic period (about 70% of the basic wage) until October, waiting for the new policy of the personnel department.
Many people from different departments of DPCA told reporters that their departments have or will implement “competitive recruitment and reduction”, and the reduction rate is generally more than 30%. For example, the purchasing department plans to reduce the total number of employees from 160 to about 110, accounting for 31%; after the completion of the competitive employment, the proportion of staff reduction is more than 50%.
DPCA insiders said that the company originally planned to reduce the total number of employees from 8000 to 5000 in 2019, but due to various reasons, the restart of the competition is the continuation of the plan.
According to the data, in 2019, the sales volume of DPCA was 114000, a year-on-year decrease of 55%, and a loss of nearly 4 billion yuan.
At the second business meeting of DPCA in 2020, the company’s senior executives proposed that the next stage would focus on three key tasks, namely, sales promotion, revenue and expenditure reduction for all staff, and quality improvement, so as to carry out the work and take quick actions to reverse the difficult situation as soon as possible. In terms of personnel, it is proposed to actively distribute and resettle personnel, such as supporting production to other units of the group.
In addition, according to a document issued by the Management Committee of Wuhan Economic Development Zone on April 28, the management committee plans to support DPCA to dispose of idle capacity, dispose of assets of DPCA’s first plant in the form of government collection and storage, and plan to exempt DPCA from property tax and land use tax in 2020. According to the evaluation of DPCA insiders, the total production capacity of the company’s four factories nationwide is nearly 1 million units / year, and the current capacity utilization rate is only about 11%. The cost and cash flow pressure caused by idle production capacity and serious staff redundancy is one of the biggest challenges for DPCA.