Chinese retail chain faces rare backlash for limiting new hires to 4-year contracts

Retail tycoon Yu Donglai, widely known as China’s “most conscientious” boss, recently triggered public controversy with a proposal to sign only a four-year “training initiative” contract with future new hires, without renewing it.Yu has been nationally acclaimed for the many unconventionally humanistic rules he set up for Pangdonglai, a supermarket chain he founded in central China’s Henan province in 1995.Yu, for example, once said his 8,000 employees’ after-tax monthly salaries average 9,000 yuan (US$1,350), higher than the province’s average. The company offers 30 days of paid leave plus 10 days of paid “unhappy leave” for those feeling emotionally unwell.Despite having branches in only two cities, Xinxiang and Xuchang in Henan, Pangdonglai has become a pilgrimage site for entrepreneurs and ordinary tourists alike.Also affectionately known as China’s “silliest boss,” Yu Donglai, right, is renowned for prioritising staff happiness – a leadership style that has earned him the deep adoration of his employees. Photo: WeiboWhen Pangdonglai made 900 new jobs available last year, over 130,000 people signed up in the system and 83,000 applied within the first 45 minutes. The applicants’ enthusiasm even crashed the system.Applying for a job at Pangdonglai is even likened to sitting the civil service exam in China, which is largely considered a steady, benefit-rich job amid the economic downturn.Some even sold targeted training courses to Pangdonglai’s job applicants, priced at thousands of yuan (hundreds of US dollars).Thus, when Yu announced the four-year contract proposal for new hires on his personal social media account @shahuaidanyudonglai, or “silly badass Yu Donglai”, many expressed disappointment.“This is ridiculous. It sounds like an excuse to hire young people and kick them out when they are getting old, experienced, and hard to control,” an online observer commented.Pangdonglai, a prominent Chinese retail chain specialising in supermarket and department store operations, has garnered widespread acclaim for its exceptional customer service and employee-centric management practices. Photo: Cheng Xin/Getty Images“People receive a diploma after studying four years at a college. What can they get from working four years at Pangdonglai?” questioned another.Some also pointed to the harsh job market, especially for applicants in their 30s and 40s. “Many would be in their 30s, childless or unmarried, which means it is even harder for them to find a new job,” another said.Yu explained that the proposal is meant to be a training programme that brings talents who have mastered working skills learned at Pangdonglai – and who understand a “scientific, civilised lifestyle” – to society.To this intention, one person replied: “Boss Yu, I understand your idea of making our society a better place with the staff you trained, but even the best seeds cannot blossom in bad soil. The only way to realise your ideal is to train millions of you.”Most comments debate Yu’s proposal peacefully, recognising his goodwill despite disagreeing with him.Yu’s uniquely unconventional management style previously courted controversy when he announced plans to ban bride prices and lavish weddings for all company employees. Photo: SohuA staff member with Pangdonglai told the SCMP that the rule is not official, as it is not published on the company’s official account.Previously, Yu was also mired in controversy when he announced plans to prohibit bride prices and lavish weddings for his employees, and to punish those who failed to adhere by cancelling their company benefits.Yu later apologised and, instead of punishment, opted for a milder approach of awarding those who gave up bride prices and extravagant weddings.Some guessed that Yu uses his personal social media account as a testing ground for his ideas, which may not necessarily materialise.Further Reading