The new vice chairman of the Economic Affairs Ministry's Commission of National Corporations, Wang Yu-yun, has had a lot of media exposure in recent years. When he took over as chairman of the government-run Taiwan Fertilizer Company four years ago, the firm was a heavy loser. In three years, he made it a money-maker and then asked to quit because, he said, he didn't want "a cushy sinecure."

He's a "can-do" type with the "right stuff," but he accepted appointment to his present position only after repeatedly turning it down first. Why? "There are loads of government enterprises and the commission is just an advisory body. It's very hard to be effective," Wang explains, repressing his characteristic impatience. "And if I can't do a job well, I'm afraid to show my face in the street later."

Wang Yu-yun, who got his start in Kaohsiung, has a penchant for getting things done. "In working for the public," he says, "if you don't have anything to show for yourself after three years, you ought to beat it."

Three years, in fact, were all he needed to rescue Taiwan Fertilizer, which had debts of nearly NT$3 billion when he took over in 1981. "When a public enterprise loses money, it loses the people's tax money. I was ashamed," he confesses. "When I ran into a stranger, I was afraid to give him my card." When Wang took over, the practice at the firm was to report on the factories that were doing well first. Wang changed that. He wanted to hear about the bad ones first--and then go there immediately and find out what was wrong.

Meeting problems head-on, Wang gets results. But isn't it tiring to see that the road ahead is chock-full of difficulties? "It's tiring all right," he replies. "But that's life!"

Wang's life, in fact, has been a long and steady road upward. As a child in a poor family, he sold popsicles and did odd jobs to help out. After retrocession in 1945, he joined the Kaohsiung police force, where, outgoing and enthusiastic, he made a lot of friends. It was through a friend's introduction that he got into scrap-metal refining and then shipbreaking. With a quick head for business and after a lot of buying and selling, Wang within a few years became one of the richest men in Kaohsiung. In 1958 he ran for city council and was elected at the age of 34. It was straight up from there--from councilman to deputy speaker, to speaker. He was elected mayor of Kaohsiung in 1969.

During his 8-year tenure, Wang earned the nicknames of the "dismantling" mayor and the "road-building" mayor. Kaohsiung was heavily bombed during World War Ⅱand when it sprang up again after the war many areas were crowded with narrow streets and unlicensed buildings. Wang opened the city up and at the same time completed the city's water system. Where did the money come from? First, the city received increased property-tax revenues from areas that had become more valuable because of the urban renewal. And second, Wang applied his business acumen to buying and selling land for the city. His "NT$30 billion of construction on an NT$3 billion budget" won him yet another nickname--the "business" mayor.

But Wang's activism also earned him not a few enemies and a mixed reception during his second term. He doesn't mind. "Before you can build up, you've got to tear down, and that will naturally hurt some people's interests. . . If you want to get things done, you can't be afraid of being called names." He had the same attitude when he took over Taiwan Fertilizer four years ago. With astronomical debts and over 5000 workers, the firm was called "a heavy burden on the government" by the Economic Affairs Minister of the time. How could Wang put up with that?

He set right to work. "The first day he came here he thought the elevator doors closed too slowly and he ordered them speeded up," an employee recalls. He then sold off the company's headquarters building and 60 hectares of land to support rebuilding of the company's Kaohsiung factory. For this move, some old company hands called him disloyal, but the interest earned and the savings on property taxes were more than enough to cover rent for another building, according to Jen Lu, the current chairman of the firm. Offices in the rented building were separated by plywood partitions, the chairman's included. Air conditioning went off at 5:30 and lights at 6:00. Office supplies were strictly controlled. Says his executive secretary, Liu Ch'en-hsiung: "He likes to save every nickel."

He was even tighter with the big money. When he found out raw materials could be imported in just a month to a month and a half, he reduced stock on hand from a four months' supply to two. Then he cut in half the materials imported under long-term contracts. The other half was purchased on the spot market. "We took advantage of market conditions, buying less when prices were high and more when they fell," says Jen Lu.

"Save a buck and make a buck," says Wang, who stresses the concept of cost. "From buying raw materials to production and sales, you've got to figure costs and benefits. . . A factory that can't be run profitably shouldn't exist." Two years ago he merged two deficit-running factories in Keelung and cancelled a plan passed by the Administrative Yuan to relocate the Kaohsiung plant, rebuilding it instead. Wang is proud of the money thus saved. "A mistaken investment," he feels, "is worse than corruption. If a public servant worries only about violating regulations and doesn't put out, the damage done to the country may at times be even worse than malfeasance."

To encourage employees to work hard, Wang promoted the concept of "unequal pay for unequal work." The employees of state-run enterprises are subject to government personnel regulations. But Wang obtained authority over a discretionary "20 percent." Factories that did well received a 20-percent bonus; factories that did poorly got 20 percent less--and the same went for individual employees. Wang took a number of other steps that were unconventional bureaucratically. He eliminated perks for reitred top officials, cut back personnel by dismissal and attrition, and used idle workers to serve as security guards. He even took another government agency to court because it was too slow in approving overseas purchases.

"Everybody knew the problems existed and they knew what to do, but they didn't want to hurt feelings in the process," Wang says with a smile. "But I've got a thick skin and don't mind being called names."

In four years, Taiwan Fertilizer lowered prices three times and at the same time increased sales. The first ten months of fiscal year 1984 the company ran a surplus of NT$320 million and it now has NT$1.3 billion in the bank. What's more, they're building a new headquarters, a cherished desire of Wang's. "I sold off their 'family property' and I want to buy a respectable building back for them in return," he explains.

Wang's reasons for asking to leave were simple: "I've done all I can for Taiwan Fertilizer. They don't need me any more." But the authorities hoped Wang could put his experience to work reorganizing other government firms. So, besides asking him to stay on at Taiwan Fertilizer, they appointed him vice chairman and executive director of the Commission of National Corporations, where he took office on June 1st this year.

Because the commission is an advisory body that can only comment and recommend, Wang had his reservations about taking on the post. "It's probably only 20-percent effective," he estimates. But he has already got ideas. He thinks employees of state firms should not have the status of public servants except in so far as their legal liability for malfeasance is concerned. He believes salary adjustments should be more flexible and based on accomplishments. And he believes in strengthened cost control.

The commission has no management authority over the firms it supervises, but it does review programs and budgets. As a result, Wang advocates "substituting service for management." What he means by "service" became apparent recently when he sent back a nuclear-power research plan proposed by Taipower for "further research." When the company resubmitted the proposal a few days later it had been cut by NT$10 million.

With his reputation from Taiwan Fertilizer behind him and his current visibility, Wang faces a lot of pressure. He lost 12 pounds in his first month in office. But, running around from meeting to meeting, talking to visitors and solving problems, he is a picture of energy and vitality.

"He has the typical mentality of a 'poor man's eldest son'," says his wife. "He loves to work, has a strong sense of responsibility and has got to do well at whatever he tackles." As Wang himself says, "If I can't do it well, I'm afraid to walk down the street." With this kind of attitude, is there any problem that can't be solved?

(Peter Eberly)

[Picture Caption]

Wang Yu-yun discusses how to help government enterprises cut back red ta pe with a couple of colleagues from the Commission of National Corporations.

"I usually don't see him for one or two weeks at a time," says Wang Shih-hsiung, Wang Yu-yun's son. A picture of father and son eating breakfast together is thus a rare sight.

Wang Yu-yun goes to Sun Yat-sen Memorial Park every morning to exercise.

Wang Yu-yun discusses how to help government enterprises cut back red ta pe with a couple of colleagues from the Commission of National Corporations.

"I usually don't see him for one or two weeks at a time," says Wang Shih-hsiung, Wang Yu-yun's son. A picture of father and son eating breakfast together is thus a rare sight.

Wang Yu-yun goes to Sun Yat-sen Memorial Park every morning to exercise.