Circular No. 20/1999/TT-BLDTBXH guiding the implementation of Decision No. 121/1999/QĐ-TTg dated May 8, 1999 of the Prime Minister on salaries and income of Vietnam Electricity Corporation.

CIRCULAR

Guidelines for Implementing Decision No. 121/1999/QD-TTg

dated May 8, 1999 of the Government Chairman

on wages and income of Vietnam Electricity Corporation

Implementing Decision No. 121/1999/QD-TTg dated May 8, 1999 of the Government Chairman on wages and income of Vietnam Electricity Corporation, following the opinions of the Ministry of Finance at Circular No. 4074 TC/TCDN dated August 18, 1999, the Ministry of Industry at Circular No. 3008/CV-TCCB dated July 21, 1999, and Vietnam Electricity Corporation at Circular No. 4106 EVN/TCCB-LD dated July 19, 1999, the Ministry of Labor, Invalids and Social Affairs provides the following guidelines for implementation:

I. SUBJECTS AND SCOPE OF APPLICATION

The subjects to which this applies are workers and officials of Vietnam Electricity Corporation including units under the production sector directly managing and serving production and business activities in electricity, specifically:

- Board of Directors; General Office of the Corporation;

- Power generation plants (thermal, hydro, diesel, gas turbine);

- Power transmission companies;

- Power companies;

- National Power System Dispatch Center;

- Research Science and Technology Environment and Computer Center;

- Power Information Telecommunications Company.

II. APPLICABLE REGIMES

1. Wage rate.

a. Construction and review of wage rates; Vietnam Electricity Corporation shall construct and review the wage rates of the entire corporation and its subordinate units according to the guidelines set forth in Circular No. 13/LDTBX-TT dated April 10, 1997 and Circular No. 14/LDTBX-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs.

b. Conditions for applying the adjustment factor for increased minimum wage:

The application of the adjustment factor for increased minimum wage to calculate the wage rate of the Corporation according to the provisions of Decree No. 28/CP dated March 28, 1997 of the Government when fully meeting the following conditions:

- Production and business operations are profitable;

- Ensuring the fulfillment of state budget payments in accordance with the law;

- Reducing power loss by 0.2% to 0.3% annually compared to the plan approved by the Board of Directors of Vietnam Electricity Corporation (power loss targets are based on actual performance of the previous year);

- The average labor productivity of power industry workers and officials must be higher than that of the previous year, calculated per kWh of commercial electricity.

c. Wage rate:

The wage rate of the Corporation consists of two parts:

- The wage rate calculated according to the regulations and guidelines set forth in Circular No. 13/LDTBX-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs;

- Safety operation bonus calculated on the basis of job grade salary according to the guidelines set forth in point 2, section II of this Circular.

Based on the wage rate reviewed by the Ministry of Labor, Invalids and Social Affairs, the Board of Directors is responsible for assigning the wage rate to member units, clearly indicating the safety operation bonus within the wage rate calculated according to Circular No. 13/LDTBX-TT mentioned above.

2. Safety operation bonus system.

a. Subjects to which this applies: as stipulated in section I of this Circular.

b. Bonus level:

- Level of 15% of job grade salary, applicable to workers and officials in the business, service, and auxiliary production sectors, specifically:

+ Power companies (excluding certain individuals receiving a 20% level);

+ Power Information Telecommunications Company (excluding certain individuals receiving a 20% level);

+ Research Science and Technology Environment and Computer Center;

+ National Power System Dispatch Center (excluding certain individuals receiving a 20% level);

+ Board of Directors, General Office of the Corporation.

Level of 20% of job grade salary, applicable to workers and officials in the production and power transmission sectors, specifically:

+ Hydroelectric, thermal, diesel, and gas turbine power plants;

+ Management and operation of power transmission and distribution systems with voltage greater than 380V; power information systems from 110kV to 500kV;

+ Working at voltages greater than 380kV: major repairs, emergency repairs, regular maintenance, and testing in power plants, power lines, and electrical equipment;

+ National Power System Dispatch Center (system dispatch).

c. Calculation of safety operation bonus into the wage rate of Vietnam Electricity Corporation.

- Based on the number of subjects eligible and the bonus levels specified in clauses a and b, point 2, section II above, determine the average bonus percentage for each unit and the entire Corporation (using the weighted average method);

- Based on the average job grade salary coefficient and the average bonus percentage for each unit and the entire Corporation, determine the average bonus coefficient (Htt) relative to the minimum wage level included in the wage rate of each unit and the entire Corporation by multiplying the average job grade salary coefficient by the average bonus percentage;

- Based on the provisions and guidelines set forth in Circular No. 13/LDTBX-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs and the average bonus coefficient of each unit and the entire Corporation, the wage rate of each unit and the entire Corporation is calculated as follows:

- If the wage rate is calculated based on product units (including converted products), then:

Where:

* TLmindn: Minimum wage level chosen by the enterprise according to the provisions of Circular No. 13/LDTBX-TT mentioned above;

* Hcb: Average job grade salary coefficient according to the provisions of Circular No. 13/LDTBX-TT mentioned above;

* Hpc: Average supplementary wage coefficient included in the wage rate according to the provisions of Circular No. 13/LDTBX-TT mentioned above;

* Tsp: Comprehensive labor level per product unit according to the provisions of Circular No. 14/LDTBX-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs;

* Htt: Average bonus coefficient of the enterprise calculated as described above;

* 26 days: the number of working days in a month;

* 8 hours: the number of working hours per shift as prescribed (depending on whether the work time is shortened or not).

If the hourly wage rate is calculated based on revenue (sales), total income minus total expenses (excluding wages from total expenses), or profit, then the rate will be calculated in two parts, with the bonus part being based on the average bonus coefficient of the enterprise. The calculation method shall be as specified in Circular No. 13/LDTBXH-TT.

Example: In 1999, after evaluation, the average job grade salary coefficient (Hcb) of Vietnam Electricity Corporation was 2.75; the minimum wage level for calculating the hourly wage rate (TLmindn) was 350,000 VND/month; the average additional allowance coefficient included in the hourly wage rate (Hpc) was 0.35; the average safety bonus ratio was 17.8% of the job grade salary and the average bonus coefficient (Htt) was 0.49 (= 2.75 x 17.8%); the comprehensive labor quota for 1,000 kWh of commercial electricity (Tsp) was 7.5 hours, and the average working time per shift was 7 hours/day. Therefore, the hourly wage rate assigned to Vietnam Electricity Corporation in 1999 based on unit product is:

= 44,712 VND/1000kWh commercial electricity + 7,067 VND/1000kWh commercial electricity.

Based on the evaluated hourly wage rate, the Board of Directors of Vietnam Electricity Corporation assigns the hourly wage rate to its member units in a similar manner as described above.

d. Reward Principles.

- Link bonuses to ensuring safe production of electricity; if there is no safety, there will be no bonus;

- Bonuses should primarily focus on employees directly involved in the operation and maintenance of the power grid and electricity supply;

- If an accident occurs that affects the overall production results of the entire Vietnam Electricity Corporation, the bonus of the Corporation must be reduced;

- Any block or unit that causes an accident must reduce or not receive bonuses based on the severity of the incident;

- Clearly define the responsibilities of staff towards customers, prevent abuse and harassment of customers; if violated, penalties or no bonuses will apply;

- Regulations must clearly reflect strict rewards and punishments. For violations of workplace safety rules leading to accidents or failure to promptly address incidents, in addition to disciplinary actions and material compensation, penalty systems should be established;

- Safety operation bonuses should not be paid together with regular wages but should be given based on the results of ensuring safe electricity operations.

Vietnam Electricity Corporation is responsible for establishing a safety operation reward system according to the principles mentioned above and seeking opinions from the Ministry of Labor, Invalids, and Social Affairs before promulgation. In cases where there is no reward regulation, the safety operation bonus system cannot be implemented.

3. Attraction Allowance.

a. Objectives and Scope of Application:

Workers and employees working at management, operation, and repair teams for electricity transmission, testing, and telecommunications in the 500kV transmission system.

b. Level of Allowance.

- A level of 70% of the job grade (position) salary applies to:

+ Ngoc Lac Substation, Nhu Xuan Substation in Thanh Hoa Province;

+ Ky Anh Repeater Station in Ha Tinh Province;

+ Phuoc Son Substation, Giang Substation, Phuoc Son Operation Post, Giang Operation Post in Quang Nam Province;

+ Ngoc Hoi Substation, Dak Uy Substation, Dak Lei Operation Post in Kon Tum Province;

+ IA Ruh Substation in Gia Lai Province;

+ Cu Ne Substation, Quang Tin Substation, Quang Son Substation, Krong Nao Operation Post in Dak Lak Province.

- A level of 50% of the job grade (position) salary applies to:

+ Cam Thuy Operation Post, Yen Cat Operation Post in Thanh Hoa Province;

+ Yen Thanh Repeater Station, Nam Dan Repeater Station in Nghe An Province;

+ Bach Ma Substation in Thua Thien Hue Province;

+ Hoa Xuan Substation, Dak Nong Load Three Substation, Dak Nong Operation Post in Dak Lak Province;

+ Dak To Operation Post in Kon Tum Province;

+ Chu Se-Plâycu Operation Post, 500kV Plâycu Transformer Substation in Gia Lai Province;

+ Bu Na Operation Post in Binh Phuoc Province.

- A level of 30% of the job grade (position) salary applies to:

+ Lac Son Operation Post, Lac Son Repeater Station in Hoa Binh Province;

+ Muoc So Welding Plant in Thanh Hoa Province;

+ Nghia Dan Operation Post in Nghe An Province;

+ Ky Anh Operation Post in Ha Tinh Province;

+ Bo Trach Substation, Le Thuy Substation in Quang Binh Province;

+ Cam Lo Substation in Quang Tri Province;

+ Phong Son Substation in Thua Thien Hue Province;

+ Kon Tum Operation Post in Kon Tum Province;

+ Bo La Substation in Binh Duong Province;

+ Dong Xoei Operation Post in Binh Phuoc Province.

- A level of 20% of the job grade (position) salary applies to:

+ 500kV Hoa Binh Substation;

+ Ha Tinh Compensation Substation in Ha Tinh Province;

+ Ba Don Operation Post, Dong Hoi Operation Post in Quang Binh Province;

+ Dong Ha Operation Post in Quang Tri Province;

+ Hue Operation Post in Thua Thien Hue Province;

+ Buon Ma Thuot Operation Post in Dak Lak Province;

+ Da Nang 500kV Transformer Substation, Da Nang Operation Post;

+ Phu Lam 500kV Transformer Substation.

c. Duration of Allowance Payment, Calculation Method, and Payment.

The duration of the attraction allowance payment is three years starting from January 1, 1999. The calculation method and payment of the attraction allowance shall be carried out in accordance with the guidance provided in Circular No. 16/LDTBXH-TT dated June 2, 1993 issued by the Ministry of Labor, Invalids, and Social Affairs.

III. IMPLEMENTATION

1. Based on the conditions for applying the additional minimum wage coefficient stipulated in Point 1, Section II above and the guidance provided in Circular No. 13/LDTBXH-TT dated April 10, 1997; Circular No. 14/LDTBXH-TT dated April 10, 1997 issued by the Ministry of Labor, Invalids, and Social Affairs, the General Director of Vietnam Electricity Corporation is instructed to establish the hourly wage rate, report to the Board of Directors for review, and submit a letter to the Ministry of Labor, Invalids, and Social Affairs requesting approval of the hourly wage rate as prescribed.

2. Vietnam Electricity Corporation must urgently organize the establishment of a safety operation reward system according to the principles stipulated in Clause d, Point 2, Section II of this Circular before September 30, 1999, and send it to the Ministry of Labor, Invalids, and Social Affairs for agreement before implementation.

3. This Circular takes effect from May 23, 1999. The wage regulations stipulated in Section II above shall be effective from January 1, 1999. The conditions for applying the additional minimum wage coefficient stipulated in Clause b, Point 1, Section II shall be effective for two years (1999-2000).

In the course of implementation, if there are any difficulties, they should be reported to the Ministry of Labor, War Invalids and Social Affairs for study and resolution.