Joint Circular No. 01/2005/TTLT/TLĐLĐVN-BLĐTBXH guiding on the organization and operation of Workers' Congresses in state-owned companies

JOINT CIRCULAR

Guidelines on organization and operation

 of Workers' Congresses in State-Owned Enterprises

_________________ 

To implement the Law on State-Owned Enterprises 2003, the Trade Union Law, and the Regulations on Democracy in State-Owned Enterprises issued together with Decree No. 07/1999/NĐ-CP dated February 13, 1999 of the Government;

The General Confederation of Labor of Vietnam and the Ministry of Labor, Invalids, and Social Affairs provide guidelines for organizing and operating Workers' Congresses as follows:

1. Scope and subjects of application:

1.1. These Circular applies to State-owned Holding Companies; independent State-owned Companies; independent accounting units of Companies established and operated under the Law on State-Owned Enterprises; single-member limited liability companies, two or more member limited liability companies, and joint-stock companies where the subscribed capital is owned by the State (hereinafter referred to collectively as State-Owned Companies).

1.2. It is encouraged for other companies where the State holds controlling shares or contributions to apply these guidelines to organize Workers' Congresses or Workers' Meetings in accordance with the specific characteristics of their companies.

2. Principles:

2.1. The Workers' Congress or the Workers' Representative Congress (hereinafter referred to collectively as the Workers' Congress) is a form of direct democracy for workers and employees (W&E) to participate in managing and using state capital at the company level. The Workers' Congress is held from the team, squad, department, division, workshop, subordinate unit level up to the company level.

2.2. The Chairman of the Board of Directors, General Director (Director) of the company, heads of departments, production managers, team leaders, and production team leaders, along with the Trade Union at the same level, have the responsibility to prepare plans, contents, and decisions to convene the Workers' Congress, jointly preside over the Workers' Congress at their respective levels, and direct subordinates (if applicable) to organize the Workers' Congress.

2.3. The Workers' Congress is considered validly organized when at least two-thirds of the total number of W&E (general congress) or two-thirds of the total number of representatives convened (representative congress) attend. Resolutions of the congress take effect when more than half of the total number of attending representatives vote in favor and do not contravene state policies and laws.

3. Time for organizing the Workers' Congress:

3.1. For State-owned Holding Companies, at least two Workers' Congresses must be organized every five years during the second quarter of the selected year.

3.2. For the remaining State-owned Companies, one Workers' Congress must be organized annually during the first quarter of the planning year.

4. Forms of the Workers' Congress:

4.1. A general congress is organized in companies with 150 W&E or fewer.

4.2. A representative congress is organized in companies with more than 150 W&E.

In cases where companies have less than 150 W&E but due to dispersed operations or inability to leave production positions, the General Director agrees with the Executive Committee of the Company's Trade Union to organize a representative congress.

In cases of dependent accounting units, workshops, or production teams with more than 150 W&E, the professional leadership and the Executive Committee of the Trade Union at the same level agree on the form of a general congress or a representative congress, and before implementation, they must seek approval from the professional leadership and the directly superior Trade Union.

4.3. Extraordinary Workers' Congress:

The General Director, in agreement with the Executive Committee of the Company's Trade Union, decides to convene an extraordinary Workers' Congress in either a general or representative form within fifteen days from receiving any of the following requests:

- Request from the General Director of the company;

- Request from the Executive Committee of the Company's Trade Union;

- Proposal from more than fifty percent of the total number of W&E (the Trade Union collects this in writing);

- When the company proceeds with shareholding reform, transfer, sale, lease, restructuring (merger, consolidation, division), dissolution, or bankruptcy.

Extraordinary Workers' Congresses in subsidiary units are organized upon agreement between professional leadership and the directly superior Trade Union.

5. Participants in the Workers' Congress:

5.1. General congress: all W&E.

5.2. Representative congress: includes permanent delegates at the convened level and elected delegates from lower levels:

a) Permanent delegates include: members of the Board of Directors (if any); General Director (Director), Deputy General Director (Deputy Director), Chief Accountant; Chairperson, Vice-Chairperson, and Standing Members of the Executive Committee of the Company's Trade Union; Secretary of the Party Cadre Committee, Secretary of the Party Committee or Secretary of the Branch Committee (where there is no Party Committee); if the Secretary of the Party Committee or Secretary of the Branch Committee concurrently serves as General Director (Director), then the deputy secretary is a permanent delegate; Secretary of the Communist Youth Union; Head of Women's Affairs; Head of People's Inspectorate; Head of Supervisory Board.

Permanent delegates who are currently subject to disciplinary measures from reprimand upwards are only invited to attend the congress to respond to suggestions and questions raised by the congress and do not have voting rights in the congress.

b) Elected delegates:

- The number of delegates is agreed and allocated by the General Director (Director) and the Executive Committee of the Company's Trade Union to ensure a proportionate representation corresponding to the number of direct workers, youth, and female laborers in the company.

- Elected delegates must be trusted by W&E; capable of contributing opinions to the congress; not currently undergoing disciplinary measures from reprimand upwards; elected through secret ballot by the congress at that level; must obtain more than fifty percent of the votes cast.

If multiple candidates exceed fifty percent of the votes cast, they are selected in descending order of the highest number of votes until the allocated number of delegates is filled.

If the first round of voting does not fill the allocated number of delegates, further rounds of voting continue until the required number is achieved.

If multiple candidates have the same number of votes exceeding the allocated number of delegates, additional elections are held among those with the same number of votes to select the candidate with the highest number of votes corresponding to the allocated number of delegates. If still unable to fill the required number, the Congress Chair requests the congress to decide.

6. Content of the Workers' Congress:

6.1. Discussion and contribution of opinions prior to the competent authority deciding on issues related to their own level and directly superior level as follows:

a. Directions, tasks, plans, measures for developing production and business operations, restructuring the company's production; public financial information;

b. Plans for shareholding reform, diversification of ownership of the company;

c. Internal regulations and rules of the company directly related to the rights and obligations of employees;

d. Measures for labor protection, improving working conditions, material and spiritual living standards, environmental hygiene, vocational training and retraining for employees of the company;

e. Voting on confidence surveys for the positions of Chairman of the Board of Directors, members of the Board of Directors (if any), General Director (Director), Deputy General Director (Deputy Director), Chief Accountant when requested by competent state authorities.

6.2. Discuss and vote on the following issues:

a. The content or amendments and supplements to the collective labor agreement for the representative of the employee group to sign with the General Director or Director of the company;

b. Rules for using welfare funds, rewards, and relevant plan indicators of the company directly related to the rights and obligations of employees in accordance with state regulations;

c. Evaluation of the results and program of activities of the People's Inspectorate Board;

d. Electing the People's Inspectorate Board (for supplementation or for the term of office).

6.3. The content of the extraordinary Workers' Congress focuses on discussing and making resolutions on issues that are the reasons for convening the Workers' Congress.

7. Funding for organizing the Workers' Congress: is recorded as part of the company's expenses.

8. Procedure for organizing the Workers' Congress:

8.1. Preparatory meeting.

- Participants: Board of Directors (if any), General Director (Director), Secretary of the Party Committee, Secretary of the Party Committee or Secretary of the Branch Committee (if the representative concurrently holds two positions or is absent, then the deputy replaces), Chairman of the Company Trade Union.

- Content: develop the Workers' Congress plan of the company; assign preparation of content and implementation of the Workers' Congress plan down to lower levels.

8.2. Meeting of company officials.

- Participants: Secretary of the Party Committee, Secretary, Deputy Secretary of the Party Committee; Board of Directors, General Director (Director), Deputy General Directors (Deputy Directors), Head of the Supervisory Board, Chief Accountant, Chairman, Vice-Chairman and Standing Members of the Company Trade Union, Head of the People's Inspectorate Board; Secretary of the Communist Youth League, Head of Women's Affairs, Heads of Departments, Divisions, Workshops, Production Teams, Chairmen of Departmental Trade Unions.

- Content of the meeting: General Director (Director) and Chairman of the Trade Union report briefly on the assigned contents at the preparatory meeting; Delegates discuss and provide supplementary opinions on the above reports; General Director (Director) and Chairman of the Trade Union accept and perfect the reports.

8.3. Workers' Congress of teams, divisions, workshops, departments, and member units.

- Participants: Employees who have entered into labor contracts with the company. In cases where the number of employees in workshops or member units exceeds 150 people, the Workers' Congress may be held according to the provisions of Section 2 Clause 4.2 Section 4 of this Circular.

- Content: Heads of departments, divisions, workshops, and production teams present draft reports from the company Director on the implementation of specialized tasks and the implementation of policies and systems for employees at the unit; Team Leaders (Chairmen of Departmental Trade Unions) present draft reports within the responsibility of the Company Trade Union prepared for submission to the Workers' Congress of the company; The Congress discusses and focuses on issues such as directions, tasks, and plans for production and business operations of the company, solutions to implement production tasks of the department; measures to improve the material and spiritual life and working environment of employees; content to amend, supplement, or establish new collective labor agreements; content to amend, supplement internal regulations and rules of the company (if any); elect representatives to attend the Workers' Congress of the company according to allocated quotas (if any); approve lists of proposed awards for groups and individuals at the unit; approve opinions and suggestions to be submitted to higher-level congresses.

8.4. Workers' Congress of the Company:

- General Director (Director) of the company:

Report on the results of production and business operations and directions for the next plan; Report on the results of implementing policies and systems for employees regarding labor restructuring, recruitment, improving working conditions, vocational training and retraining, wages and income, social insurance, health insurance, profit distribution and establishment of company funds, etc.; Draft content for amending and supplementing (if any) internal regulations and rules of the company; Public financial report in accordance with current regulations.

For State-owned Holding Companies and Parent Companies, the General Director reports on the above contents, focusing on long-term and short-term development plans; production and business targets assigned to member units; measures to organize and enhance the efficiency of business operations of the holding company for its subsidiaries;

- Chairman of the Company Trade Union: Report on the implementation of the collective labor agreement and draft content for amendment, supplementation, or establishment; report on the acceptance and results of negotiations on the collective labor agreement; summary of the competition movement and plans for organizing the competition movement for the coming year; about the opinions of employees regarding proposals to competent authorities to organize confidence surveys for the Chairman of the Board of Directors, members of the Board of Directors (if any), General Director (Director), Deputy General Director (Deputy Director), Chief Accountant.

- Head of the People's Inspectorate Board reports on the results and plans for activities of the People's Inspectorate Board.

- Delegates discuss the reports.

- Introduce personnel of the Trade Union to participate in the Supervisory Board; introduce candidates qualified to represent employees and workers for competent authorities to consider and appoint to the Board of Directors (if any).

- Elect the People's Inspectorate Board (if any).

- General Director (Director) and Chairman of the Trade Union answer questions within their jurisdiction.

- Voting to approve the following documents: the contents of the Collective Labor Agreement or amendments and supplements for the Chairman of the Trade Union to sign with the General Director (Director) of the company; the regulations on the use of welfare funds, rewards, and relevant corporate plans that directly affect the rights and obligations of workers in accordance with state regulations; evaluating the performance and program of activities of the People's Inspectorate Board; voting to recommend representatives from the workforce to join the Board of Directors when conditions are met.

- Signing the Collective Labor Agreement:

When the draft Collective Labor Agreement complies with current labor laws, the Chairman of the Trade Union and the General Director (Director) shall sign it at the Congress.

If the conditions stipulated by law have not been met, negotiations and signing will continue after the Congress.

- Announcing rewards and launching competitive campaigns.

- Upon authorization by the competent authority, the Congress may vote to express confidence in the positions of Chairperson, Board of Directors members (if applicable), General Director (Director), Deputy General Director (Deputy Director), Chief Accountant.

- Voting to pass the Resolution of the Congress.

8.5 Announcing the results of the Congress.

After the Congress, the General Director (Director) and the Executive Board of the Company's Trade Union shall inform all workers of the Congress results and submit reports to the direct superior management.

9. Implementing the Congress Resolution:

- Responsibilities of the General Director (Director) of the company: directing departments and units to develop and implement plans based on the Congress Resolution; cooperating with the Executive Board of the Trade Union to resolve worker demands approved at the Congress; providing conditions for the People's Inspectorate Board to operate according to the law; periodically every six months, jointly with the Executive Board of the Trade Union, summarizing and evaluating the implementation of the Congress Resolution, Collective Labor Agreement, and competitive campaigns, informing workers within the company and reporting to superiors.

- Responsibilities of the Executive Board of the Company's Trade Union: supervising the implementation of plans to carry out the Congress Resolution and the Collective Labor Agreement; directing the activities of the People's Inspectorate Board; coordinating with other organizations within the company to encourage workers to implement the Congress Resolution and the Collective Labor Agreement.

10. Implementation Provisions:

- This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Document No. 1584/TLĐ dated November 15, 1999 of the Vietnam General Confederation of Labor.

- The Vietnam General Confederation of Labor shall cooperate annually with the Ministry of Labor, Invalids, and Social Affairs to inspect and evaluate the organization of Congresses in state-owned companies; promptly resolving any issues faced by these entities.