Joint Circular No. 16-TTLT on gradually abolishing the supply system in state-owned enterprises

 JOINT CIRCULAR

On Gradually Abolishing the Selling Supply System in State Enterprises 

Decree No. 182-TTg dated April 7, 1958 of the Prime Minister stipulates in Article 10 on gradually abolishing the selling supply system in state enterprises. The Joint Ministry issues this Circular to explain and specify for implementation:

I. THE MEANING AND PURPOSE OF GRADUALLY ABOLISHING THE SELLING SUPPLY SYSTEM

Currently, in state enterprises, there are many different wage systems: the war-time wage system with partial selling supply, the recovery wage system, the original wage system, etc. Due to the existence of various wage systems and mainly because of the selling supply system, people doing the same work in the enterprise receive different benefits, some receiving more, some less, and some not receiving at all, causing confusion among workers and civil servants and difficulties in implementing other systems within the enterprise such as overtime pay, bonus systems, etc. On the other hand, due to the selling supply system not being accompanied by strict usage regulations and regular education on thrift consciousness among workers, it has led to significant wastage of state resources.

To address the above unreasonable situation, during this wage improvement period, the Government proposes to arrange all workers and civil servants in the production area into the wage scales of the enterprise to enjoy a unified wage system and be paid in cash without the selling supply component. The wages of those currently enjoying the selling supply system will be added to their salaries and on that basis, increase the production area's salary by 14%. Therefore, from now on, the selling supply components will be gradually abolished.

Implementing the policy of paying wages in cash and gradually abolishing the selling supply system will make the wage system fundamentally unified and have a positive impact on internal unity among workers and civil servants in the enterprise. Doing so will also create favorable conditions for enterprise management (implementing unified labor and wage systems, implementing economic accounting systems), enhancing the thrift consciousness of workers and civil servants in the use of public property.

However, the policy of gradually abolishing the selling supply system does not mean reducing the responsibility of industry and level management departments and the Enterprise Trade Union towards the material and spiritual life of workers and civil servants. While abolishing the selling supply system, it is necessary to gradually establish collective welfare organizations based on the circumstances of each enterprise to help workers and civil servants resolve daily living difficulties.

II. GENERAL PRINCIPLES

1. From the date of implementation of the new 1958 wage, all housing, electricity, and water supply allowances will be completely abolished. Usage standards and regulations will be established, and users must pay according to the standard and degree of usage.

2. Standards will be set based on position, job requirements, and the existing capacity of the enterprise, distinguishing between personal and family usage to calculate differently.

3. Pricing for collection will take into account current wages. For those currently enjoying the collective selling supply system but whose wages have not been increased or still need to pay the difference amount, temporary non-payment will be allowed. If the increase amount is less than the amount to be paid, only the increase amount will be collected.

4. The transition from the collective allowance system to the establishment of collective welfare organizations must be done gradually, organizing appropriately to ensure that the material life of workers and civil servants continues to improve.

III. SPECIFIC PROVISIONS

A - ON HOUSING:

Based on the current housing situation, temporarily stipulate as follows:

1. Standard: (the unit for calculating housing standards is square meters)²).

- Workers and civil servants living collectively: average 3 square meters² 50.

- Directors and managers of small and medium-sized enterprises may live in a room of at least 10 square meters², maximum not exceeding 25 square meters² (depending on local conditions).

- Directors and managers of large enterprises (such as Haiphong coal mine, medium-scale enterprises, Nam Dinh textile factory...) may live in two rooms of at least 15 square meters², maximum not exceeding 40 square meters².

- Staff responsible for key sections in the enterprise, technical and scientific staff, if required to have a private room, will be arranged a place to live separately and larger than workers and civil servants, but attention should be paid to maintaining good relations between staff and workers and civil servants, avoiding excessive separation, especially in places where housing is scarce.

- For staff, workers, and civil servants who live with their families, the enterprise will determine the standard based on its housing capacity and actual needs.

2. Amount to be paid:

Based on the current housing situation, based on current wages, and to simplify the initial payment process, it is temporarily divided into four types of houses and set four levels of payment as follows:

1. Thatched house with mud walls ...each square meter² 100 dong

2. Poor brick house, wooden house, warehouse, tin roof house ...each square meter² 150 dong

3. Ordinary brick house, wooden house with tile roof and ceiling ...each square meter² 200 VND

4. Good brick house, villa ...each square meter² 1,200đ

- If the family of cadres, workers, and civil servants is permitted by the enterprise to arrange separate accommodation, in addition to the individual worker's standard of square meters² , the family's part will also be charged according to the price specified for cadres if it is the enterprise's house, but if it is rented from the enterprise, they must pay according to the government-set price. The difference between the rental price and the government-set price to be collected from workers and civil servants will be borne by the enterprise (Administrative Committees of cities and provinces will set rental prices according to the specific conditions of each locality).

- Any enterprise currently collecting higher rent than the above-specified price needs to reduce it to match the specified price, while those collecting lower rent should raise it to the unified price.

- Clause 4.500 dong subsistence allowance in Hanoi and other amounts stipulated by sectors for cadres, workers, and employees who eat and stay outside the office or factory will be abolished from the date the new salary is implemented, but will be added to the old income to calculate the difference if the new income is lower than the old income. (If any agency or sector subsidizes more than 4,500 dong, only up to 4,500 dong can be added to the old income to calculate the difference).

Workers and employees who eat and stay outside after the implementation of the new salary in 1958 shall not have their subsistence allowances added to their old income to calculate the difference.

B. - ELECTRICITY AND WATER:

Where there is electricity and tap water, each cadre, worker, and employee may use according to the standard prescribed by the Ministry of Finance.

Electricity: 6 people per 60-watt light bulb.

Water: each person pays 18 cubic meters annually and must pay a monthly amount of:³ Electricity: 200 dong per person.

Water: 150 dong per person.

Cadres, workers, and employees residing in private rooms or using more electricity than the above standard or using other electrical appliances such as irons, fans, radios, etc., must pay according to actual usage (the specific method of calculation temporarily follows the provisions of Circular No. 31-TC-HCP dated March 31, 1958, issued by the Ministry of Finance regarding the supplementation and explanation of certain points concerning the supply standards for 1957).

C. - MATS AND BEDS:

Mats:

No additional purchase, mats already distributed are considered personal property. - For workers and employees receiving restored salaries who have paid for beds, they continue to pay until the full price is paid, at which point the bed becomes their property.

- For workers and employees currently enjoying the provision system and using beds, the factory continues to lend them. Workers and employees are responsible for maintenance; if damaged, they must repair it themselves.

- Beds borrowed by workers and employees and taken home (beyond individual standards) will be sold back to the factory at market prices ranging from 10% to 20%, to be repaid in installments over a period of one year.

C. - SUBSIDY:

While awaiting research on gradually transforming the current collective subsidy organization into a welfare system, the following temporary measures are prescribed:

1. Factories need to lead and improve the current collective subsidy organization so that it serves better, without hastily dissolving it, thus ensuring adequate food and drink for workers and employees, and should not entrust cooking to private individuals or groups for profit, as this would easily reduce the level of meals for workers.

2. Until a study is conducted on organizing cooking under a welfare system (meaning an organization managed by the factory and the Trade Union, with workers and employees contributing a part and the factory assisting), no fees will be collected temporarily.

Factories restoring operations that are currently collecting cooking costs will also suspend collection temporarily, waiting to implement uniformly with other factories.

IV. - SOME IMPLEMENTATION PROVISIONS

1. This circular guides and unifies some specific points and general principles; ministries and sectors will apply these closely based on the characteristics of their industry, such as determining enterprise categories (small, medium, large), distinguishing between living expenses of workers and employees to be charged and work tools not subject to charges.

2. The housing standards prescribed here for factory directors and supervisors shall be applied to directors of General Departments, Departments, specialized directors and chiefs, heads of business companies, etc., according to the unified housing standards for cadres at corresponding levels in state agencies.

3. For construction sites with special systems.

4. The gradual abolition of the provision system in mobile units such as geological survey teams, road survey teams, forest investigation teams, mobile film projection teams, etc., shall be regulated by relevant ministries after consultation with the Joint Board.

5. Workers and employees receiving restored salaries who previously paid for housing, electricity, water, and beds shall now pay according to the newly prescribed rates.

6. This circular applies from the date the new 1958 salary is implemented in production areas.

During implementation, if any difficulties arise, localities and sectors are requested to report to the Joint Board for timely resolution.

In the course of implementation, if any difficulties or obstacles arise, localities and sectors are requested to report them to the Joint Ministry for timely resolution.