Settlement And Arrangement Of Employees In The H Company Business Transformation

In China, state-owned enterprise reforming has totally entered to a crucial stage, how to manage the resettlement of redundant employees has been concerning about by the government and enterprises.With the rapid development of information era, the involvement of electronic equipment, such as eBook and microcomputer, has changed reader’s reading style, younger generation especially. Thus traditional paper printing market is shrinking, and it is has been a hard time for traditional magazine and commercial printing. In addition, the shrinking market also caused the cut-though competition in the industry, while many printing companies turn to deficit. Hence, some enterprises choice to close down, suspends operation, merge with other companies, or conduct the transformation of business.H Company is a state-owned printing enterprise with over 70 years history. Firstly, in 2008, H Company was identified as a not environment friendly enterprise. Under the policy of reducing secondary sector and increasing tertiary sector of economy in downtown area, H Company was required to relocate outside of downtown. Secondly, the strike of electronic reading devices cased the reducing demands of papery books, newspaper, and magazines. Thirdly, with the rising of labor costs and raw material prices, and the decreasing of printing prices, there is not bright future for state-owned enterprises, which exactly follows the operational rules. H Company would rather look for living than waiting for the dying. Thus enterprise transformation and upgrading is imminent. After consideration, the company made a decision that close down the printing industry, and transform to property development. Because of this, there were 336 employees need to be resettled. At the same time, by the 18 th China Communist Party Congress was held, H Company met a great challenge of how to make there settlement reasonable and employees concerned.This article uses the resettlement of employees during transformation of H Company as a case study by discussing about the labor resettlement and relation issues of state-owned enterprises. Also, the article analyzes background of the issue and the current situation of H Company and providing the solution and strategy to the case. It is a useful reference for stare-owned enterprises transformation in other place in China.