Circular No. 4-TS/TT guiding the implementation of wage, bonus, and other allowances for management, technical, and operational staff in cooperatives and fishing production groups

CIRCULAR

OF THE MINISTRY OF FISHERIES NUMBER 4-TS/TT DATE SEPTEMBER 19, 1985
GUIDELINES FOR IMPLEMENTING THE SYSTEM OF PAYING WAGES, BONUSES, AND OTHER ALLOWANCES FOR MANAGEMENT STAFF, TECHNICAL, AND OPERATIONAL STAFF IN COOPERATIVES AND PRODUCTION GROUPS IN THE FISHERY INDUSTRY.

In 1968, the General Department of Fisheries (now the Ministry of Fisheries) issued a temporary system for paying wages to cooperative staff and allowances for management staff and cooperative members attending school.

On September 28, 1981, the Ministry of Fisheries issued Circular No. 494-TS/HTX guiding the implementation of various forms of production distribution systems within collective economic zones in the fishing industry according to the spirit of Decision No. 16-CP dated January 15, 1981 of the Council of Ministers (now the Government), including guidelines on wage payments to cooperative staff.

Since the issuance of these guiding documents, under the guidance of provinces and districts, many fishing cooperatives have effectively implemented them, thereby identifying specific issues that require supplementary guidance to align with the new contractual mechanisms.

To implement Resolution 6 of the Fifth Plenum on reforming the management mechanism of cooperatives, and Resolution 8 of the Fifth Plenum on abolishing centralized bureaucratic rationing mechanisms, ensuring true democratic centralism, economic accounting, and socialist business operations. Based on Article 22 of the Cooperative Regulations issued pursuant to Decree No. 51-HĐBT dated March 17, 1982 of the Council of Ministers regarding "labor management and wages."

The Ministry of Fisheries hereby issues circulars guiding the system of paying wages, bonuses, and other allowances for management, technical, and operational staff in cooperatives and production groups as follows:

I. OBJECTIVE AND SIGNIFICANCE

Management, technical, and operational staff in cooperatives and production groups (referred to as cooperative staff) are those who directly manage and direct all economic, technical, and operational activities aimed at implementing the cooperative's charter, agreements, and production and business plans, as well as those assigned by higher authorities.

To ensure each staff member has the necessary conditions to perform their tasks effectively, while encouraging learning and improving management, technical, and operational skills among staff, it is necessary to establish appropriate incentive systems consistent with the nature of socialist collective economic organizations, making each staff member clearly aware of their responsibilities and benefits, thus being dedicated and contributing their full enthusiasm and creative abilities to build and develop the fishing cooperative economy increasingly prosperous.

II. GENERAL PRINCIPLES

Payment of wages, bonuses, and other allowances for cooperative staff shall be based on the following principles:

1. It must be linked to the final product quota system, tied to productivity, quality, and efficiency of work, linking the management, leadership, and service responsibilities of staff with the results of cooperative production and business operations, ensuring the principle of distribution according to labor.

2. It must ensure that each staff member has a satisfactory income to focus their mind and strength on completing their job tasks, while maintaining a reasonable income relationship between management staff and direct production workers.

3. It must be based on the workload of each type of cooperative, where cooperatives with higher annual production volume or value will have higher basic wage rates for each position compared to those with lower production volume or value.

4. There must be appropriate reward and punishment systems for staff responsibilities in the implementation of annual plans.

III. SPECIFIC PROVISIONS

Payment of wages to cooperative staff must be based on the classification of cooperatives, the basic wage rate for each position, and the calculation of rewards and penalties according to different quota forms.

A. CLASSIFICATION OF COOPERATIVES BASED ON PRODUCTION VOLUME

Classification of cooperatives based on production volume is calculated based on the average fish price, considered as the agreed-upon production volume to determine the cooperative type. For cooperatives specializing in producing special marine products, the value of such products and the average fish price are used to convert into the agreed-upon production volume, from which the cooperative type is determined.

Currently, cooperatives can be classified as follows:

Type 1 cooperative has an annual production volume of 500 tons or more.

Type 2 cooperative has an annual production volume of 300 tons to less than 500 tons.

Type 3 cooperative has an annual production volume of 200 tons to less than 300 tons.

Type 4 cooperative has an annual production volume of less than 200 tons.

B. BASIC WAGE RATES FOR EACH POSITION

Basic wage rates for each position.

For management committee members and supervisory committee members, in addition to the monthly wages they receive directly from their respective units (production and work locations), they also receive an additional 5% of the planned basic wage.

To implement the basic wage standard for staff linked to production and business results, economic effectiveness, and the abolition of administrative rationing management, truly transitioning to economic accounting and socialist business operations, the standard should be the average income of one worker in the cooperative, to calculate the basic wage for each staff position. If the average income of one worker is higher, the basic wage for staff will be higher; if the average income of one worker is lower, the basic wage for staff will decrease. If there is no income for workers, there will be no wages paid to staff.

The basic wage for staff in complex management, technical, and operational positions must be higher than those in simple labor positions; those with managerial or leadership roles must be higher than ordinary workers; those with heavier responsibilities must be higher than those with lighter responsibilities; the Director must be higher than the Deputy Director, the Deputy Director must be higher than the Management Committee Member... specifically:

To encourage the reduction of organizational structures and simplification of procedures, staff members of cooperatives who concurrently undertake the main duties of others shall receive additional wages for such concurrent duties. For example, an accountant who also operates a typewriter, a cashier who also manages the warehouse, etc.

The basic wage level for positions of corporate officers in production groups during days working for the group may be applied at the basic wage level of cooperative officers of type 3 or type 4. The head of a production group is equivalent to the Director, and the deputy head of a production group is equivalent to the Deputy Director.

C. WAGES AND BONUSES

Regarding wages:

The wages of cooperative officers are paid depending on the implementation of each form of contract.

1. For cooperatives implementing the wage contract based on actual income.

- If the cooperative achieves the contracted level of actual income, then the officers' wages will be paid according to the planned contract.

- If the cooperative falls short of the contracted level of actual income by a certain percentage (%), then the officers' wages will also decrease by that corresponding percentage (%).

- If the cooperative exceeds the contracted level of actual income by a certain percentage (%), then the officers' wages will also increase by that corresponding percentage (%).

- If the cooperative has no actual income, then there will be no wages paid to the cooperative officers.

2. For cooperatives implementing the contract form based on payments due.

For this form of contract, there are two cases as follows:

Cooperatives that have determined the officers' wages as a fixed quota within the total amount of payments due: regardless of whether they achieve, exceed, or fall short of the quota target for actual income of direct fishing workers, the officers' wages will still be paid according to the planned contract.

- Cooperatives that have determined the officers' wages as a non-fixed quota and are paid based on the average income of a worker:

+ If the cooperative achieves the contracted quota target for total labor wages (including both direct and indirect labor), then the officers' wages will be paid according to the planned contract.

+ If the cooperative exceeds the contracted quota target for total labor wages, then the total labor wages exceeding the plan by a certain percentage (%) will result in the officers' wages being increased by that corresponding percentage (%) compared to the plan.

If the cooperative falls short of the contracted quota target for total labor wages, then the total labor wages falling short of the plan by a certain percentage (%) will result in the officers' wages being reduced by that corresponding percentage (%) compared to the plan, but the maximum reduction shall not exceed 30% compared to the basic wage plan.

Regarding bonuses:

The basis for awarding bonuses to cooperative officers is:

- Successfully fulfilling signed economic contracts.

- Fully and timely paying taxes. - Paying bank debts honestly.

- Completing and exceeding quota targets set in the plan, such as actual income targets (for form 1), payment quota targets, income targets for direct fishing workers' wages, or total labor income targets (for form 2).

The bonus for cooperative officers ranges from 1 to 3 months of the basic wage plan, depending on the fulfillment of the targets.

The annual bonus recipients are cooperative officers who successfully complete their assigned tasks and have no more than 30 sick leave days in a year.

In addition to the annual bonus as stipulated above, during the organization and implementation process, if cooperative officers and staff make contributions affecting production and achieving tangible results such as increasing productivity and output, completing plan targets ahead of schedule (both quantity and quality), timely repairing machinery and fishing gear, providing sufficient and timely materials... then they will be awarded appropriate bonuses, depending on the degree of contribution of each person and the bonus fund capacity of the cooperative.

The wages of cooperative officers are settled according to the final settlement plan of the contract, while bonuses are taken from the bonus fund, and if insufficient, additional funds can be drawn from management expenses.

For production group officers, if the group achieves and exceeds production plans, contract quotas for various funds, fully and timely pays taxes... then they will be eligible for bonuses ranging from 1 to 2 months of the average wage of group members, with bonuses taken from management expenses.

D. OTHER ALLOWANCES

In addition to the wage and bonus system mentioned above, cooperative officers and production group officers are entitled to the following allowances:

1. Seniority Allowance:

Cooperative officers who continuously fulfill their assigned tasks without major faults will receive a seniority allowance of 5% of the basic wage plan after four consecutive years of service. From the fifth year onwards, they will receive an additional 1% allowance each year until reaching the maximum of 30%.

2. Chief Accountant Allowance:

Cooperative chief accountants trained for three months or more, who master accounting practices and perform their duties correctly, will receive an additional 5% of the basic wage plan.

3. Production Guidance Allowance at Sea:

Cooperative officers directly participating in sea-based production guidance due to business requirements will receive an additional allowance of up to 10% of the basic daily wage (calculated monthly) for each day at sea.

The basic wage used to calculate these allowances is the planned basic wage level of the officer's position projected for the month or year.

4. Education and Business Trip Allowance:

Officers and cooperative members sent by the cooperative or production group to attend management, technical, or other courses organized by the Fisheries Department or other departments to serve the cooperative or production group will receive the following allowances:

- Short-term study periods under one year will receive the full basic wage plan according to their position for the term and retain all other allowances (excluding school-provided allowances).

- Long-term study periods of one year or more will receive between 80 to 90% of the basic wage plan according to their position for the term (excluding school-provided allowances).

Allowances for officers and cooperative members attending education are funded from the public welfare fund, and if insufficient, the long-term education allowance can be partially covered by the reserve fund.

- Officials and cooperative members dispatched for work outside the cooperative's or production group's scope shall be reimbursed for transportation costs, accommodation tickets, travel allowances, and living subsidies. The amount of travel allowance and living subsidy shall depend on the actual situation of the locality, the specific capacity and conditions of each cooperative or production group as stipulated by the member assembly, with guidance from the Department and district fisheries offices.

E. REGARDING MANAGEMENT STAFF, TECHNICAL AND OPERATIONAL STAFF
WORKING AT THE COOPERATIVE

1. For state officials seconded to the cooperative, their salary and bonuses according to their position shall be paid. If the salary and bonuses are higher than the wage and subsistence allowance, they shall receive the difference covered by the cooperative. If the salary and bonuses are lower than the wage and subsistence allowance, they shall retain their original wage and subsistence allowance.

2. Management staff, technical staff, operational staff, and people's experts from other agencies, units, or cooperatives working for the cooperative shall, in addition to the benefits they currently enjoy, still receive payment for their work based on their current responsibilities and according to the signed contracts.

3. State officials dispatched to assist the cooperative in various operational and management technical aspects, if they make substantial contributions to directing, guiding, and assisting the cooperative in improving management, mastering operations, applying technological advancements, and achieving concrete results recognized by the cooperative management board, shall be considered for rewards according to the level of their contribution and the cooperative's award fund capacity.

III. IMPLEMENTATION

The Fisheries Departments and district fisheries offices need to carefully study this circular and develop plans and measures to guide its implementation for cooperatives and production groups.

During the implementation process, it is necessary to strengthen inspection and supervision of the implementation of this system, and if there are any unclear points or areas requiring research, revision, or supplementation, they should be reported to the Ministry.

This circular needs to be disseminated and thoroughly understood by cooperative members and production group members and shall take effect from the date of issuance.