Huangshi City Friction Material Raw Material Association | Voice of Friction Materials, Issue 2, 2016

Punishment measures for enterprises engaged in disorderly competition and mutual destruction

(Xinyi Company, Wang Dong)

1. Background.

The Huangshi Daye area is famous for its rich mineral resources, with many companies producing raw materials for friction materials. The business fields and product types of these companies are similar, and their customer groups are alike. In recent years, competition among these companies has become very fierce, even leading to unhealthy competition, with companies frequently undercutting each other for profit. Since more than a dozen companies formed the Huangshi Enterprise Federation Friction Material Raw Material Branch, members have raised this issue in branch meetings and hope to resolve it through the branch. To maintain a good market environment and address this issue, the branch has issued a special research topic to be completed by the proposer or other member units.

2. Purpose.

Eliminate disorderly competition and mutual destruction, and unite for warmth.

3. Punishment measures.
To ensure the orderly operation of member companies in the raw material market for friction materials and to create a good market environment, the following punishment measures have been specially formulated based on actual conditions to eliminate disorderly competition and mutual destruction among companies for profit, for everyone's reference.
1. Establish a supervisory group responsible for monitoring market behavior and investigating incidents of disorderly competition.
2. The supervisory group will report the investigation findings and results of violations of market behavior to the branch council in written and oral forms, and the council will review the incident and make decisions based on the severity of the incident.
3. Depending on the severity of the incident, the types of punishment can be divided into: ① warning; ② public criticism; ③ economic punishment; ④ cancellation of branch membership or council membership, expulsion from the branch; the above punishments can be executed separately or combined.
4. Each enterprise can receive no more than three warnings or public criticisms per year (including three). If it exceeds three, the punishment will be intensified, escalating to cancellation of membership or council membership, and expulsion from the branch. Economic punishments can be determined based on the incident and may include: 1000 yuan, 2000 yuan, 5000 yuan, 10000 yuan, etc., as decided by the council.
5. In the following circumstances, the branch may exercise discretion to waive punishment:
① Minor circumstances that have not caused adverse effects;
② Proactively taking measures to effectively eliminate adverse effects.
6. In the following circumstances, the branch may exercise discretion to lighten or reduce punishment:
① Minor circumstances, actively cooperating with the investigation and acknowledging the facts of the investigation;
② First-time offenders with a good attitude of admitting mistakes;
③ Self-checking and proactively reporting violations of market behavior;
④ Proactively taking measures to effectively reduce adverse effects.
7. In the following circumstances, the branch may exercise discretion to impose heavier punishment:
① Providing false information during the supervisory group's investigation of violations of market behavior, fabricating, concealing, altering, or destroying evidence, or evading, refusing, or obstructing the investigation personnel from performing their duties;
② Retaliating against complainants, whistleblowers, and other relevant personnel.
③ Damaging the image of the branch and tarnishing the reputation of branch enterprises.
8. For serious violations of market behavior, in addition to canceling membership or council membership and expelling from the branch, reports may be made to relevant associations such as the China Friction Sealing Materials Association, and published on their official website.

9. For violations of the Anti-Unfair Competition Law that are suspected of being criminal, the branch will hand over the case to judicial authorities for processing.

4. Next steps.
1. Determine the list of supervisory group members and define their responsibilities.
2. Formulate a self-discipline agreement for branch enterprises, and reach a consensus before implementing punishment measures.
3. Collect breach of contract fees in advance, so that economic punishments can be collected in a timely manner, avoiding delays due to other factors.
4. It is recommended that responsible personnel from each enterprise in the same area hold a symposium to get to know each other better and deepen impressions, while also informing everyone that we are 'one family' and should unite outside.
The above are personal views; please provide guidance if there are any inappropriate points.

How to improve information exchange and resource sharing among enterprises

Work

(Xinyi Company, Yu Sibin)

Huangshi City is a place rich in mineral resources, providing us with a unique advantage for raw materials for friction materials. The number of raw material enterprises for friction materials in Huangshi is increasing, like stars shining in the sky. In recent years, with resource depletion, bottlenecks in social development, and the transformation of enterprise economic technology, it has become increasingly difficult for us, and the development and production of enterprises face severe challenges.

During this difficult period, the raw material enterprises for friction materials in Huangshi City have united to establish the Huangshi Friction Material Raw Material Branch, aiming for strong alliances, mutual support, common development, and win-win cooperation to face the fiercely competitive market together.

The establishment of this friction material raw material branch is a kind of fate, an opportunity, and a resource. We should make full use of this opportunity and resource to improve information exchange and resource sharing among ourselves, pooling our wisdom and efforts to face the severe market challenges together and achieve common development.

For our traditional small and medium-sized enterprises, there are many things we want to do but feel powerless. Currently, we are only supplying single raw materials for friction materials, with low technical content and high costs, and the market situation is becoming increasingly grim. I believe each of our enterprises is seeking new breakthroughs, new turning points, and new developments.

The coordinates that solidify youth
—— Remembering the deeds of Wu Zhijia from Duxin Powder Co., Ltd.
(Duxin Company, Zhu Chunping)

In the spring of March, the wind and moon harmonize. Wu Zhijia, a worker at Daye Duxin Powder Co., Ltd., is dedicated to his position and cares for the company, solidifying his youth in the production workshop, earning the reputation of a down-to-earth worker among his colleagues.

At a young age, I first tasted life.

In his early 30s, Wu Zhijia was born into an ordinary farmer's family in Duxin, Daye. Due to family difficulties, he dropped out of high school and went to work in Zhejiang as part of the labor wave. At that time, due to his young age and short stature, he was not hired by many factories and shops. He only found some odd jobs when his wallet was nearly empty, and the following year he went to Guangdong to work with his sister. During his time in Guangdong, he noticed the numerous barbershops and thought this industry must be very profitable, which sparked his idea of opening a barbershop. In early 2002, he went to Wenzhou to learn hairdressing, and from 2005 to 2006, he opened barbershops in Wenzhou and Daye. However, due to a lack of funds to pay for the high rent and renovation of a storefront, he had to open a 'public type' shop in a small alley. Although it was called a public type, it was essentially a barbershop catering to the elderly, and the skills he learned could not spread widely, resulting in poor business in the deep alley, barely covering rent, utilities, and sometimes even needing to dig into his own pocket for meals.
He became anxious and said, 'My parents raised me to this age, and at 20, I haven't contributed a single cent to the family, which is hard for me to face.' For a 20-year-old, most young men and women are still at home relying on their parents' 'legacy,' while he had tasted the 'truth' of life too early, without the desire to wander around the city with classmates and friends. One day in April 2007, his sister returned from her in-laws and told Wu Zhijia, 'If your barbershop isn't working, then don't do it. Come work at my brother-in-law's place; it might be better than going to work for others. But you must understand that before I got married, we were siblings, and when you go there, you must work seriously, not be afraid of hardship, and don't think that being relatives means you can enjoy privileges...' A few days later, Wu Zhijia closed his barbershop, packed his bags, and went to the company run by his in-laws. At that time, the company was processing in Majiao, and the warehouse was in Xiaojipu. He would run back and forth between Majiao and Xiaojipu, processing and shipping, sometimes so busy that he couldn't even eat. By the end of that year, heavy snow made it impossible to go to Majiao, but just as he arrived at Majiao, he had to turn back. When he hadn't even had time to change out of his work clothes and ran to the road to hitch a ride, the bus conductor, seeing him in his gray and dirty clothes, was unwilling to take him. He had no choice but to walk. The cold wind howled in his ears, and his underwear was soaked with sweat. He could only stand in the middle of the road to forcefully 'land' when he could no longer walk.

No extravagant desires, just solid work.

By April 2016, Wu Zhijia had been working at his sister's in-laws' company for nine years. The company had transformed from a rented house with a few old machines to a spacious factory and bright office building, with the production and office environment completely renewed. However, he still looked the same as before, not having 'upgraded' with the company. In his words, 'Although they are relatives, I do not consider it a relative's company, nor do I intend to take advantage of it. I treat it just like any other factory, doing my job diligently, not dragging anyone down, and hoping not to be looked down upon or fired for being idle.'
The honest and diligent Wu Zhijia rarely speaks. He neither argues about compensation with sales staff who earn tens of thousands a year nor compares 'levels' and positions with others. For nine years, he has never left the production workshop, never enjoyed a day in the office. The first thing he does every day at work is carefully check the production notices issued by the production department, strictly following the specifications for name, mixing, ratio, measurement, color, granularity, and packaging to ensure product quality and timely completion of tasks. In production, he operates the loader to feed materials while also driving the forklift to deliver products to the warehouse, busy with shipping and raw material storage, covered in oil and dust, making Wu Zhijia look like a 'gold-plated Arhat'.
Hard work pays off. In every bag and ton of raw materials sold to domestic and international brake production enterprises, the product quality has consistently met national and international standards, receiving unanimous praise from users. The company has obtained membership in the National Sealing Friction Industry Association, which cannot be separated from Wu Zhijia's hard work and the efforts of the Wu family. In February 2016, Wu Zhijia was recognized as an advanced individual in the company, and in March, he was promoted to production department supervisor.

Making this my home is what makes my family.

Wu Zhijia's parents are both farmers who have toiled on the land their whole lives. Now, his father's health is deteriorating. After getting married, Wu Zhijia has two children, and the family's livelihood relies entirely on labor, belonging to the 'sunlight tribe' and 'moonlight tribe' type of family. Originally ambitious, he hoped to achieve great things while young and become wealthy. However, when he actually opened the barbershop, everything became so difficult that reality forced him to stop there. When he joined Duxin Company, he entrusted everything to the company, dedicating himself to doing his job well while also proactively thinking of and accomplishing things that others had not thought of. When others finished work, he was still busy in the workshop, never caring about overtime pay. He said, 'I am a young man from an ordinary farmer's family, with no impressive social background or economic foundation, relying solely on my solid work and serious study.' At home in the evening, he diligently studied the equipment manuals, mastering the operation of machinery during work hours, quickly becoming familiar with equipment usage and product production processes. He could hear where the workshop's crushing, grinding, and grading equipment had faults and promptly suggested replacing parts and repair advice, playing a significant role in ensuring smooth production and reducing production costs for the company. No one taught him how to operate the loader, forklift, and overhead crane, but he practiced whenever he had a little free time, and now he uses them very skillfully. During vocational training in Huangshi, he obtained a forklift qualification certificate in just two days of training.
In adhering to work discipline and executing systems, he emotionally said, 'A country has its laws, a family has its rules, and a company has its regulations. We work here; this is our home. Only by maintaining this big family, cherishing our positions, and working hard can we have our little family!'