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Duty

Employees’ Life Quality Report(ABSTRACT)
—ZHENGJIANG GUOBANG PHARMACEUTICAL CO., LTD 

Quality of Personnel; Welfare; Working Hours; Income; Training & Development

Quality of Personnel
       With an average age of 34, Zhengjiang Guobang Pharmaceutical Co., Ltd (ZJGB) has 1351 employees, 930 male workers (68.8%) and 420 female workers (31.2%). 486 employees have served ZJGB for more than five years (including five years) (36%); 143 employees have a length of 3~5 years (10.6%); 370 employees have a seniority of 1~3 years (27.4%); 342 employees work here less than 1 year (25.3%). The employees come from 25 provinces, with 300 of them from Zhejiang province, 195 from Sichuan province, 184 from Henan province, 48 from Jiangxi province and 38 from Shaanxi province, with a percentage of 22.2%, 14.4%, 13.6%, 3.6% and 2.8% respectively.


Composition of employees regarding with different educational backgrounds, technical titles, professional skills and Participation in company organizations:

Educational level

Doctor degree

13

Master degree

86

Bachelor degree

405

Junior College

206

Technical secondary school/Senior high school

375

Professional technical titles

Senior technical titles

52

Intermediate technical titles

180

Junior technical titles

102

Professional skills

Certified safety engineer

7

Accountant

3

Licensed pharmacist

4

Mechanic

Over 30

Electrician

Over 10

Members of company organizations

the Trade Union

1228

the Fraternity

568

Communist Party of China

81

 

Welfare
       To prevent the problems like getting old, becoming sick, giving childbirth and having traffic accidents to factory, ZJGB provides various types of benefits for all. The company pays social insurance, including endowment insurance, medical insurance, employment injury insurance, unemployment insurance and maternity insurance, and gives lunch allowances, middle shift allowances and night shifting allowances as well as housing fund. The staff can get bonus and gifts on traditional Chinese festivals like the Spring Festival and the Mid-autumn Festival; If working on these days, they will get the overtime pay 3 times as much as usual. There are also vehicles taking employees to shop in the downtown, running from 6:00 pm to 9:00 pm, Monday to Friday, which brings great convenience.
 
Labor protection
       The company distributes labor protection articles every month, and provides corresponding protective equipment for special positions. Providing two work clothes for each employee each year, the company also organizes safety training, fire drill and firefighting skills competition. Apart from offering special items and allowances when working in high temperature in summer, the company also prepares heat-clearing beverages for whom on duty. All the employees can get a comprehensive physical examination in county hospitals with occupational disease examination qualification each year. In 2016, the number of the examinees has reached 1635, and 99.8% of them are healthy.
 
Working Hours
       Focus on the idea of people-oriented, trying to keep the employees working well and rest well, the company stresses a proper balance between work and rest. ZJGB is the first among all the enterprises in the zone that applied and was approved of synthetic working hour calculating system, which is now carried out in the production department. Because of the the job particularity, employees in engineer support department need to work six days a week, with one-day overtime pay. Employees in the back office work seven hours each day from Monday to Friday, with 261 working days in a year on average.
 
Income
       During the Twelfth Five-year Plan from 2011 to 2015, the average annual income per employee increases by 10% each year, reaching the goal of doubling employee’s income doubles, ranking top in the zone and even in Shangyu. According to the data in 2016, the per capita income of ordinary workers (full attendance) reaches 53 thousand. For those nonlocal employees’ families, who are faced with the challenge of growing costs of living like higher prices, they can live a comfortable and dignity life with such income, and enjoy life and work.
 
Training & Development
       As the enterprise competition increasingly lies in human resources, vocational education is without doubt the important way to acheive enhanced employees and competitive enterprise. ZJGB does utmost to ensure all employees can demonstrate their talents and fulfill their values. As the Chinese saying goes, “ provide sky for an eagle and the grassland for a steed”. As a young team, 98% of the employees have completed the nine-year compulsory education. Not only encouraging employees to take self-improved examination, correspondence courses or online education, the company invests more in the internal professional education and training system, in order to improve the quality and skills of employees. Different systematic annual training plans are made fitting specific departments and positions, with different people specilizing in training demand survey, planning, implementation, and appraisal. Making full use of the internal and external resources, ZJGB provides all round and various types of training, such as expatriates training, external experts training, intrudction training, undergraduate military training, work summary after probation, and regular colloquia. The company initially set up a college -- Guobang College of Education, which cooperates with China Medicine University. Combing the advantages of the university and cultivating participants as university mode, the college trains all-round and qualified talents, thus to both achieve individual development and promote company’s profit.
 
Logistical support
       Always taking the people-oriented idea into first consideration, ZJGB has put the good housing of employees in the first place since it was established in Hangzhou Bay Shangyu Economic and Technological Development Zone in 2000. It took the lead in building staff quarters, providing supporting facilities such as shuttle buses, bathrooms, dining halls, etc. Especially in recent years, the company stresses on caring for employees and aims at their happiness and sense of belonging, having spent about five million yuan improving the working and living condition by upgrading facilities including the vehicles, dining halls, bathrooms and living quarters. 
 
Vehicles
       The company has five buses with air-conditioner and two business cars, picking up 11040 person-times in Xinchang, and 74520 person-times in Baiguan. Two shuttle buses from the factory to the quarters, totally picking up 110400 person-times. In addition, a bus departs at 6:30 pm from Monday to Friday to take the employees for shopping in Baiguan, which takes 10125 person-times a year. The business cars travels over 700 journeys. The number of private cars of the company members almost reaches 180.
 
Renovation of public bathroom
       The bathroom built many years ago and could not satisfy the needs of employees in terms of its facilities and capacity. Therefore, investing over 500 thousand yuan, the company rebuilt a new bathroom with advanced and energy-efficient equipment such as automatic temperature control and electronic water control system, which can accommodate 22 female workers and 41 male workers at the same time. It can not only benefit the employees, but also save energy, water and thus costs. The saved costs are returned to employees in the form of bathing allowances.
 
Staff Dining Hall
       In 2002, a dining hall of 750 square meters that could accommodate 320 people having meals together was built with good facilities. Accompanied by company development, ZJGB invested over 1million yuan in 2011, so air conditioners were added and the hall was expanded to accommodate 600 people with better facilities. In 2016, the costs from canteen staff salary, electrical power, water source, gas and steam energy reached more than 1.1 million. Since the dining hall was established in October 2002, the price of the food in the dining hall has been cheap, which is a fringe benefit for employees. People specially assigned supervises food purchase, and ensure food safety. Professional chefs are hired for cooking. To make it more convenient, the dining hall also sells snacks (at a group purchase price).
 
Living quarters
       The living quarters were completed in 2004 with six buildings, occupying an area of 20 thousand square meters, which includes 288 standard rooms, 88 small rooms, 8 large rooms and 60 shift rooms. In this area there are supporting facilities for entertainment such as activity rooms, basketball court, gym, table tennis room, reading room, chess and cards room and the video room, with property management, network and telephones. The quarters can accommodate 760 people, and now there are over 650 people living there. To make the place more comfortable and beautiful, the company have invested over 1.2 million yuan to improve the supporting facilities, for example, the air conditioners in 2011. Recently, another one million yuan has been placed for the renovation of the quarters.
 
Harmonious labor relations
       In recent years, focusing on production and management, the company organizes activities under the guideline of “building an enterprise with harmonious labor relations”. A leading group and an implementation group have been set up for this goal, drawing up the Measures on Conducting Activities to Build an Enterprise of Harmonious Labor Relations and making it come into use. Thus the legitimate rights and interests of the company and employees get protected, which is good for healthy development of the company and construction of harmonious society.
 
Signing labor contracts in accordance with the law
       It provides an effective guarantee for harmonious labor relations to complete the labor contract system. According to the Labor Law, the company formulates and issues the Procedures for Trial Implementation of Labor Contract Management in ZJGB, fully flowing labor contract. With the principle of quality and mutual benefit, the company signs labor contracts with employees, which are all valid. The labor contract items refer to the contract text uniformly printed by Shangyu Labor and Social Security Bureau, which is comprehensive and legitimate. The company exercises the rights and performs its duties strictly according to the labor contract, and does properly in the signing, renewal, rescission and termination of a contract. Thus the labor contract management gets more systematic, standard and sound, protecting the rights and duties of both sides. Since the company was established, there has never been labor contract dispute.
 
Abide by labor laws and regulations
       It’s important for the company and employees to follow labor laws and regulations, so as to achieve mutual benefits. An enterprise cannot develop without the support and work from employees. It’s the company’s responsibility to give employees proper salary, improve their working and living environment, and ease their worries. To achieve these goals, ZJGB first improves relevant regulations by drawing up the Employee Handbook. The handbook includes Labor Management Regulations, Salary Management Regulations, Staff Welfare System, Employee Recuperation System, Comprehensive Management Regulations, Safety Management Regulations, Regulations on Environmental Protection, Occupational Health Management Regulations, Dormitory Management System, Enterprise Civility Card System, Measures on the Implementation of Rationalization Suggestion System, Rules of Workers’ Fraternity, in order to protect the legitimate rights of the employees. Secondly, the salary is paid monthly in full amount, which is decided by many factors including job skills, specific position, work performance and production sales. The salary is higher than the minimum wage standard made by the labor contract and local government. Thirdly, all employees are provided with pension insurance, medical insurance, employment injury insurance, unemployment insurance and maternity insurance, with the social insurance premium paid in time. Fourthly, according to labor laws and regulations, the company adopts the 5-day workweek system and gives legal holiday break, protecting the employees’ legitimate right of rest. Because of the particularity of the industry, overtime working may be needed to do rush repairs, which will be properly paid according to national regulations. Fifthly, the company has set up interest subsidy system for employees’ house purchasing. Sixthly, the company issues the Temporary Measures on the Reimbursement of Employees’ Childbirth Expenses according to the Regulation on the Labor Protection of Female Employees issued by the State Council, protecting the occupational safety and health of female employees. During the pregnancy, maternity leave and breast-feeding periods, female workers’ rights get protected. Seventhly, the company promotes safety production and the prevention and treatment of occupational diseases, with the special leader group and work group in charge. Duty security system is established and fully carried out. As to daily production and operation, the company strictly follows pharmaceutical production laws, to ensure safety production and the safety and health of employees.
 
Establishing and improving mechanisms for the coordination of labor relations
       A harmonious labor relation is one of the core competitiveness of the enterprise today facing the fierce competition. It is an effective way for building a harmonious labor relation by promoting equal negotiation and signing collective contract. The representatives from employees and the representatives from the enterprise administration, negotiate respectfully and equally for the common problems in the labor contract, and then the trade union signs the collective labor contract with the enterprise administration department, which proves to be effective in preventing labor contract disputes. The company and employees sign the collective labor contract every three years, on the basis of equal negotiation. With the principle of “negotiation for the first” and regulated procedures, representatives from both sides negotiate on the suggestions and opinions of employees for many times to perfect the collective report. As both sides reach consensus, the new collective contract is completed, which will be signed by the chairman of the trade union and the general manager.
       Secondly, the collective contract must be fully implemented. A supervision group is created to supervise the fulfillment of the contract every half year, to make sure it is fully fulfilled. Thirdly, as to the wage agreement in the contract, collective wage negotiation is held regularly each year, as the total wages are connected with the enterprise revenue. Fourthly, the company attaches importance to comprehensive treatment, setting up a special leader group and the mediation board for it, and drawing up the Responsibilities for Comprehensive Treatment of Social Orders. Following the idea of “prevention and mediation, mainly in prevention”, the company promotes legal publicity and education, and settles civil and labor disputes according to the law and careful investigation in a timely and fair way. As a result, possible escalation of disputes is avoided. Fifthly, the company tries to reassure the employees for the stability of the society. By promoting the “three loves” activity (love the country, love the company, and love the family), the company achieves the goal of “Enterprise caring for employees and employees love the enterprise”.
 
Enhancing the development of the trade union according to the law
       In November of 2004, the trade union of Zhengjiang Guobang Pharmaceutical Company was established together with the trade union fund committee, trade union supervision committee for labor protection, and trade union labour dispute mediation committee. The trade union now has 1228 members, with all employees in. There are fifteen groups in the trade union. The trade union always highlights the development of institutions, drawing up the The Duties of the Company Trade Union, The Duties of the Trade Union Fund Committee, The Supervision and Inspection System for Labor Protection, The Regular Meeting System of the Company Trade Union, and The Duties of Company Trade Union Dispute Mediation. These regulations make the duties of the trade union and cadres clear.
       The trade union plays an important role in mediating the disputes between the company and employees, and protecting the employees’ legitimate rights. The enterprise administration department not only strongly supports the trade union, but also improves the structure of the trade union and appropriates money for the trade union’s expenditure to hold activities such as competitions and sports meetings.
       The company aims to ensure each employee has the right of knowing, the right of participation and the right of supervision. To achieve this goal, the company stresses to adopt a democratic management mechanism. First, the system of worker's congress is set up and improved. Second, the democratic negotiation mechanism is fostered. Third, the affairs of enterprises are made public, and the employees can participate in the management.
 
Founding clubs and organizations
       Under the leadership of Party committee and the organization department of Hangzhou Bay Shangyu Industirial Park, the company has set up seven party branches. The company set up the science and technology association in 2003, the trade union committee and the women’s federation in 2004, and Guobang College of Education. To promote the spirits of “solidarity, friendliness, loyalty and endeavor”, the company holds “show kindness and commend good examples”. By doing this, people are encouraged to be kinder and help each other. In July 2008, the Workers’ Mutual Aid Foundation was founded with perfect organizational structure. The company also set up an office to collect the feedback and suggestions from employees. To relax and connect the employees, the trade union set up diverse clubs for their hobbies such as the study club, recreation club, sports club and photography club.
 
Enterprise culture building
       Employees are the backbone of a company. It is important to improve the professional skills of employees and organize leisure-time activities, so as to enhance the cohesion, competitiveness and development of the enterprise. Therefore, the company has made a good effort to achieve this goal.
       First, the company develops unique enterprise spirit.
       By founding the enterprise journal “Endeavor”, decorating cultural corridor (in the living quarters), and holding “Mid-autumn Festival Party” and “love your job, and love your family” activities, the company promotes management concept and corporate image. The company also holds competitions with the theme of “Learn from the model worker and be a model worker” and conducts rationalization suggestions themed “Suggestions make the company better”, which encourages employees to participate in company affairs. With a united and active atmosphere, the company has formed the spirit of “profession, harmony and endeavor” and the style featured “integrity, control and responsibility”.
       Second, the company promotes the training and education of employees.
       Holding the activity themed “create a learning organization, and be a knowledge worker”, the company emphasizes and invests in the professional training and education of the employees. Guobang College of Education grants the employees certificates after evaluation, encouraging employees to learn knowledge and professional skills. An educational management system begins to take into shape, creating a good learning environment.
       Third, the company tries to improve the working and living environment of employees. Advocating and implementing safety production and labor protection, the company adopts accountability system. Thus the idea and atmosphere featuring “cares for love and attention to safety” are formed. The company also cares for the daily life of the employees, making management regulations including the Living Quarters Regulations, Bathroom Regulations and Dining Hall Regulations, and improving the facilities in these places.
       Fourth, the company organizes “heart-warming” activities.
       The trade union set up Workers Mutual Aid Foundation and relevant regulations, helping employees in difficulties and organizing fund-raising activities. The company also gives supports to them and makes them feel love from the group. During the Chinese New Year and Mid-autumn Festival, employees receive gifts and bonus from the company. In summer, they get special gifts and beverages. Employees also get birthday wishes from the trade union.
       Fifth, the company organizes various leisure activities for employees.
       The recreation and sports teams include basketball team, table tennis team, chess team and dancing team. There are enough places and good facilities for these activities such as the “home of staff”, “party member activity room”, the basketball court, the table tennis room, the chess room, the video hall, the reading room and the gym. Each year the trade union holds the sports meeting (including the basketball, tug-of-war, table tennis, chess and the game of go) , various shows for Mid-autumn Festival and the New Year’s Day, and also other competitions about calligraphy, photography and writing. The employees have won the first prizes in team score in the industrial park sports meetings, the second place in team score in Shangyu Badminton Match, and the second place in Shangyu Yu Shun Cultural Festival. Moreover, the trade union also organizes spring and autumn outings. With all these activities, the employees get more inspired, creative and loyal, and the company develops in a harmonious atmosphere.
 
Activities organized by the trade union in the past year
       The writing and speech contest, the week activity themed “love your job and love your family”, the Women’s Day activity on March 8th, the tug-of-war of young employees on May 4th, the table tennis match, the cooking competition of “home of employees”, the fire-fighting sports meeting, the basketball league match, the chess game, the Mid-autumn Festival variety show, the survey of working couples, the survey of employees basis information, the “heart-warm activity”, the knowledge contest about safety and environmental protection, the rationalization suggestion, and the sports meeting of the park.
 
The models and awards
       There are various models and awards: the model group, the model team, the model worker, the enterprise culture model, the model of “love your job and love your family”, the model mentoring relationship, the model cadre, the rationalization suggestion award, the star perform each month (quarter), and the star team each month (quarter). For these models, the company gives public commendation, awarding them with gold medals, certificates and bonus. They can also be on a trip organized by the company in the next year.
 
For good causes
       In recent years, as it develops, the company also takes on the social responsibilities and helps those who in need, which demonstrates the virtue and a sense of responsibility.
       1. The mutual aid foundation donated 11200 yuan immediately to employees afflicted by Wenchuan Earthquake on May 12, 2008, to help them rebuild their homes. With the principle of “getting to the family, knowing their difficulties, solving their troubles, and warming their hearts”, the company starts the “heart-warming project” to help employees in difficulties. The company has spent over 500 thousand yuan helping 76 employees in difficulties over the past few years. The mutual aid foundation has spent 92 thousand to help employees afflicted by natural disasters or diseases.
       2. In the fund-raising activity in Shangyu, the company donated 5 million yuan, 10 million yuan and 10 million yuan respectively in three rounds.
       3. Children represent the future of China. The company always value children’s growth, and donated 2 million to China Children and Teenagers Foundation.
       4. From 2007 to 2016, the company has donated 3.93 million yuan to the Harmony Foundation of Hangzhou Bay Industrial Park, making contributions to the harmony of the park.
       5. Valuing knowledge and talents is a highlight of the enterprise culture. In recent years the company has set up Guobang scholarships in China Pharmaceutical University and South China Agricultural University, totally endowing 1.78 million yuan. The company also endowed 500 thousand to the “Flowing Flowers” scholarship of Shangyu Charity Foundation. The company donated 150 thousand to the 100th anniversary of Chunhui middle school of Shngyu and all the elementary school teachers in Gaibei town, 100 thousand to Xinchang Sanlian Hope Primary School, and 50 thousand to Hongshan School for Migrant Workers’ Children in Nanjing. These donations are used to improve the facilities in the schools and provide better education for the children.
       6. Responding to the call of the local government, the company spent nearly 350 thousand yuan organizing the speech activity with the theme of “develop low-carbon economy and build a green China”, in order to promote environmental protection. Also, the company participated in the “enterprise-village co-work” project, investing 600 thousand to support Gaibei Lianhe village to build the new countryside.
       7. Responding to the call of the local government, the company donated 1 million to the “Five water” (polluted water, flood, water-logging, water supply and water saving) project.
 
Conclusion
       Over the past decade, ZJGB has developed steadily in the chemical and medicine industry, and promoted the people-oriented enterprise culture as well, which can be shown in the working environment, logistical support, sense of social responsibility and employee benefits. Following the concept of “share the beauty of science, nature and life”, the company takes chemical technology as core and pursues its harmony with nature and its use for human life. With Guobang Pharmachem Group Co., LTD as the parent company, the company has developed a separate operating share structure. Holding the idea of “do it best” and “never give up”, the company becomes a non-area-limit group with billions sales. We advocate the elite development culture of Zhejiang - “we stand under the same sky”, and encourage top performers to develop from a blue collar to a white collar and to a gold collar. We aims to make our products worldly-known, make our industry nationally-known, make our business strength well known in the province, and make our company a good place for employees to work in and live in.