Hainan Rubber Group has recently introduced a new policy aimed at enhancing and refining the long-term contracting system for employees working in open rubber gardens. This initiative follows the launch of its quality and technical standardization system, outlined in Document No. 1, and reflects the company’s ongoing efforts to strengthen the entire natural rubber industry chain in Hainan.
The newly issued document, titled “Implementing and Perfecting the ‘Long Package’ System,†outlines several key measures. It emphasizes the need for reasonable approval of production plans, improved risk management mechanisms, clear definition of rights and obligations between branches and contractors, and enhanced real-time settlement processes. The goal is to establish effective balance adjustment procedures and address issues such as those seen in the Mangang project, ensuring continued support for the production and management of Hainan’s rubber plantations.
One of the main highlights is the focus on maintaining relatively stable production levels. After the implementation of the “long package†system in 2008 and subsequent improvements in 2009, Hainan Rubber adopted a principle of “great stability and small adjustments.†However, due to factors like natural disasters, changes in the number of tapping trees have occurred. To address this, the company has conducted a comprehensive review of the number of trees in each branch and adjusted planned outputs accordingly. Going forward, Hainan Rubber will base its annual output planning on natural growth and decline, ensuring stability while making necessary adjustments through transparent and fair procedures.
Another important aspect is the establishment of a special compensation fund to enhance the long-term contracting risk mechanism. In response to falling rubber prices and natural disasters, the company is using market-based approaches to accumulate funds that can be used to compensate affected contractors. Additionally, it encourages contractors to participate in agricultural insurance, improving their ability to withstand risks.
The policy also emphasizes the implementation of clear rights and obligations for both branch companies and contractors. This includes focusing on sustainable development, improving rubber yard management, and strictly enforcing cutting regulations. Regular cross-checks and accountability measures are being implemented to ensure compliance.
In addition, the company is working to improve the instant settlement process for rubber purchases. This aims to build trust between enterprises and contractors by creating a fair and transparent platform for transactions. The purchase price, weight, and dry content of the latex are now announced daily, and settlements are made at the end of the month based on the long-term contract method.
To address concerns about unfair production distribution, the company has established fair and balanced adjustment procedures. A commissioning team composed of contractor representatives ensures transparency in production adjustments, helping to maintain income equity among workers.
Finally, the policy promotes the gradual realization of Mangang-style contracting and improves labor productivity. By merging small jobs and increasing full-time employment rates, the company aims to boost efficiency and focus on proper maintenance of rubber plantations.
Overall, these initiatives demonstrate Hainan Rubber’s commitment to sustainable development and the long-term success of its rubber industry. By improving policies and engaging all stakeholders, the company is working to ensure that contractors take full responsibility for the management, cultivation, and harvesting of rubber, passing the baton from one generation to the next.
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