Tianjin Samsung factory suddenly shut down thousands of employees anxious waiting for placement program

 Tianjin Samsung factory suddenly shut down thousands of employees anxious waiting for placement program

At 2 p.m. on December 19, the first internal transfer recruitment fair was held in the canteen of Tianjin Samsung Communications Technology Co., Ltd. (hereinafter referred to as Samsung Communications, Tianjin Samsung Mobile Phone Factory).

This recruitment fair is sponsored by Tianjin Zhonghuan Electronic Information Group Co., Ltd., one of the shareholders of Samsung Communications. The recruitment enterprises include 9 affiliated enterprises in Tianjin Photoelectric Group, Tianjin Tongguang Group and Zhonghuan Semiconductor Group. The job demand is about 200 people.

For a company that will close at the end of the year and still has about 2,500 employees, this turnover is a drop in the bucket.

In fact, according to the 21st Century Economic Reporter, the shutdown affects not only the employees of Samsung Communications, but also about 700 employees of Tianjin Samsung Communications Research Institute. It may also include some employees of Samsung Data Systems (SDS) who are responsible for Samsungs mobile phone logistics business. This means that the number of employees who need to be resettled may exceed 3000.

How many jobs will eventually be solved is unknown. Several company employees told 21st Century Economic Reporters that more people are still waiting to see the exact placement plan - after the closure news is confirmed, they have elected 115 staff representatives, and are electing consultative representatives to negotiate with Samsung.

However, there is not much time left for both sides. The deadline of December 31 is near, and the mobile phone factory, which has been established since 2001, will usher in its final destiny. With thousands of employees involved, they stand at the crossroads of fate.

Up to the time of submission, Samsung China did not respond to reporters about the specific placement of employees. Earlier, in response to the news of the closure of the mobile phone factory in Tianjin, Samsung said in a public statement: As part of the sustained efforts to improve the efficiency of production facilities, Samsung Electronics has made a difficult decision to stop Samsungs electronic communications business in Tianjin.

Shut down suddenly

On December 11, when Yang Lin (not his real name) arrived in the conference room of the company, the general managers speech had already begun for a long time. Despite being late, he heard the news that Tianjin Samsung Communications Technology Co., Ltd. will be closed down on December 31 this year.

Yang Lin was not shocked by the closure. In August this year, a wave of news has been circulated by Korean media around the Tianjin Samsung Mobile Phone Factory or Closure, and within the company, the closure has long been planned.

Because I know some news in advance, the psychological impact is not as great as I imagined. Yang Lin told 21st Century Economic Reporters.

But that doesnt mean hes ready.

In recent months, we havent given much consideration to changing jobs, Yang Lin told 21st Century Economic Reporter. It was expected to be closed in the second half of next year, so we plan to see new opportunities after the Spring Festival.

Today, however, all rhythms are disrupted.

The sudden arrival of the shutdown news has made Samsung communications extremely busy up and down.

The placement information has not yet been released. The company said that it must first elect staff representatives and consultation representatives, and then negotiate. Samsung employees disclosed to 21st century economic reporters that when the closure news was announced, the companys relevant people met together. Personnel departments are basically working overtime, and should formulate a response plan.

While announcing the closure, there is no clear settlement plan, which is unsatisfactory to many employees in the current factory.

According to reporters, two days in the weekend, the factory is holding the election of employeesrepresentatives, according to the number of each department to carry out a certain proportion of the extraction, and eventually selected about 115 people as representatives early this week. Subsequently, 11 of these persons need to be selected as consultative representatives.

However, because many of the more than 100 employees do not know each other, the selection of Representatives is stuck in this link. Samsung employees told reporters, The next step is still under discussion.

After the announcement of the shutdown, some employees told 21st Century Economic Reporters that Samsung had offered a two-in-one solution to the shutdown of the factory: either to relocate to other companies within the Samsung system or to leave the company. However, such a two-in-one scheme only targets production level employees, and management level personnel can not guarantee placement. At present, factory management positions account for about one fifth.

Ten years of ups and downs

For the local, Samsung Communications is undoubtedly a landmark existence.

Near the company in Xiqing District Microelectronics Industrial Park, Tianjin, there is more than one bus stop named Samsung Communications: 826 buses stop on Edison Road, where the north gate of the factory is located, and 504 buses with the same name stop sign on the east side of Weiwu Road, although within hundreds of meters around, a number of Samsung Systems companies are in the forest, including Tianjin Samsung Vision, Tianjin Samsung LED, etc. Samsung Communications has become the representative of this film.

Standing on the roof of the main building of the factory area besides Tianjin Samsung Communications, the big words Samsung Smart Phone also imply the real role of the factory.

Born in 2001, with a registered capital of 104 million US dollars, Samsung Communications, a joint venture between Samsung Electronics Corporation and Tianjin Zhonghuan Electronics Information Group Co., Ltd. (hereinafter referred to as Zhonghuan Electronics), has been the pioneer of Samsung Mobile Phone in China.

In fact, in the second year of the factorys establishment, Samsung Mobile began to enter the Chinese market. Subsequently, relying on the shape, technology, screen and many other advantages, Samsung Mobile began to stabilize its market position.

I have experienced the whole process from rapid development to brilliance, then to decline and now closure in the company. As an old factory employee, Yang Lin had ample reasons to be proud, telling 21st Century Economic Reporter, 2013 is the most brilliant year for the factory, with a maximum monthly output of 10 million units.

At that time, Samsung mobile phones were also catching up with the wave of smartphone replacement, and the models represented by Samsung Galaxy mobile phones were seizing the market crazily. According to Counterpoint, Samsung ranked first in China with a 20% share of the mobile phone market in 2013.

However, after that, Samsung Mobile entered a bottleneck period in the Chinese market and was losing ground. In contrast, the output of Samsung Communications is also declining.

According to IDC Chinas data to 21st century economic reporters, Samsungs market share in China in 2016 was 5.5%, less than 3% in 2017 and 0.9% in the first three quarters of 2018.

Even Samsungs global smartphone sales are starting to weaken. According to Gartner data, Samsung shipped 73.3601 million smartphones in the third quarter of this year, down 14.3% from 85.6053 million in the same period last year. Samsungs share of global smartphone shipments fell to 18.9% from 22.3% in the same period last year.

The decline in sales means that the intention to control costs is more urgent.

The production of Samsung mobile phones is gradually shifting to factories in Huizhou, Vietnam, etc. Several Samsung employees told 21st Century economic reporters.

According to Korean media, Samsung Electronicss two factories in Vietnams Beining and Taiyuan provinces have annual capacity of 240 million units, while Tianjins and Huizhous have annual capacity of 36 million units and 72 million units.

How to end

Yang Lin was not surprised by the shutdown of Samsung Communications. In fact, he revealed that since August this year, Samsung has arranged recruitment for other companies in Tianjin, such as Samsung Motor, Samsung SDI and so on. In addition, Central Electronics is also recruiting.

But in his view, the recruitment positions released in recent months are generally, especially for management posts, there are few posts, basically in the production technology category. Yang Lin said.

He had predicted that the factory would be closed by the second half of next year, but he had his own reasons.

Samsung had many plans, but many of them did not follow the plan strictly. For example, Tianjin Samsung SDI (Power Battery), several rumors will be shut down, but this year there has been a turnaround. The last time Tianjin Samsung TSOE was shut down, the actual shutdown date was about half a year later than expected. Yang Lin pointed out that and last month, our business strategy has been formulated, including monthly output, which should normally last more than half a year.

The hasty shutdown messed up all his plans and even made him unable to live a happy year. At present, like other Samsung employees, he is anxiously waiting for the latest placement plan.

The ideal way for them to settle down is to refer to the plan of Samsung Shenzhen factory.

However, it would be a huge expenditure for Samsung to demobilize Tianjin factory employees in full accordance with the Shenzhen factory plan.

Hope to get satisfactory compensation, or the company to solve employment, resettlement to other Samsung factories to maintain the original grade. Yang Lin confessed.

In fact, Samsungs company in Tianjin is not without the possibility of new employment. Recently, Samsung China said that it intends to adjust part of its product structure in Tianjin, while investing in new projects such as the worlds leading power battery production line and MLCC plant for automobiles (multi-layer ceramic capacitors), with an additional investment of $2.4 billion.

Since Samsung is adjusting its industry from mobile phone products to high-tech components such as batteries and MLCC, it should consider relocating its employees to Samsung factories of these products, Yang Lin pointed out, because most of the employees are veteran employees who have worked in Samsung for about ten years, and have rich experience and a good understanding of the Samsung system. Its a bit worthwhile to put high-quality resources aside and then recruit for the society.

Source: Ji Xueying-NN6784, Responsible Editor of 21st Century Economic Report