National Assembly deputies raised the above possibility when discussing in the hall about the draft Law on Management and Investment of State Capital in Enterprises on the afternoon of November 29.
National Assembly Delegate Hoang Van Cuong (Hanoi Delegation of National Assembly Deputies) said that the profit distribution mechanism stipulated in the draft law will not encourage businesses to do good business and make high profits, because all of them will deduct a maximum of 3 months of salary to put into the reward and welfare fund.
Delegates analyzed that if a business operates inefficiently but pays high salaries, there will be no profit left to allocate to bonus and welfare funds, but in fact the monthly income of employees will still be high.
"On the contrary, if the business does well, but people set low wages, then when the business is profitable and has a lot of profit, people can only deduct 3 months of salary for rewards and thus the workers still have low incomes," the delegate pointed out the possibility.
Therefore, according to the delegate, profit distribution must first be used to implement assigned planning targets such as increasing capital, contributing to the budget, setting up accumulation funds for development, setting up reserve funds, the rest will be distributed to workers, and thus workers will enjoy according to the results, high profits will enjoy more, low profits will enjoy less.
Meanwhile, National Assembly Delegate Vo Manh Son (Thanh Hoa Delegation) commented on the draft law related to the management of enterprises by trade unions.
According to the delegate who is currently the Chairman of the Thanh Hoa Provincial Federation of Labor, the formation of assets and capital at the enterprises of the Trade Union originates initially from the trade union's financial resources. As an organization representing, protecting and caring for the legitimate and legal rights and interests of workers, the Trade Union needs to be guaranteed autonomy in its operations as well as in managing and investing capital at enterprises under its management, in accordance with international practices.
Currently, the process of converting and rearranging enterprises of the Trade Union organization has had initial results but has not met requirements; the implementation process still faces many difficulties and obstacles.
Decree 97/2024/ND-CP dated July 25, 2024 amending and supplementing a number of articles of Decree No. 10/2019/ND-CP of the Government amended and supplemented Clause 1, Article 17: "Political organizations and socio-political organizations shall apply the provisions of this Decree to organize the implementation of the rights and responsibilities of the owner's representative for enterprises owned by political organizations and socio-political organizations".
On that basis, in order to overcome the above limitations and shortcomings, the delegates made a number of recommendations, including on the distribution of after-tax profits and the use of the Fund, to comply with the Trade Union Law, and requested the drafting agency to study and add a new Clause in Article 15 of the Draft Law as follows: "The Vietnam General Confederation of Labor applies the provisions in Clause 1 and Clause 2 of this Article to regulate the distribution of profits and the use of the Fund at enterprises of Trade Union organizations".
