Guidlines No. 1784/HD-TLD dated November 06, 2017 on cost estimates of trade union budget by 2018

GUIDLINES

ON COST ESTIMATES OF TRADE UNION BUDGET BY 2018

- Pursuant to the Law on Trade Union 2012; Charter of Vietnamese Trade Union.

- Pursuant to the Decision No. 1780/QD-TLD dated October 26, 2017 of the Presidium of Vietnam General Confederation of Labor on rules for making and allocating cost estimates of trade union in 2018.

- Guideline No. 1305/HD-TLD dated August 15, 2017 of the Vietnam General Confederation of Labor on guiding the collection of trade union contributions in business operation area via the bank account of the General Confederation.

- Plan No. 48/KH-TLD dated October 30, 2017 of the Vietnam General Confederation of Labor on collection of trade union contributions in the business operation area via the bank account of the General Confederation.

- Based on the results of revenue and expenditure implementation of the trade union in 2016 and the process for carrying out the budget plan of the trade union in 2017, the General Confederation of Labor hereby provides the guideline for different levels of trade unions to make their cost estimates in 2018 as follows:

I - Evaluation of the implementation of trade union budget plan in 2017

1. Revenues and expenditures of the trade union

Trade unions at all levels shall focus on evaluating the following major contents based on the results from implementation of trade union revenues, expenditures and contributions within the first ten months in 2017 and the whole year of 2017:

- Evaluate the advantages and disadvantages in collecting trade union contributions and fees according to the current regulations; evaluate the process for carrying out the budget plan of the trade union, their allocation of cost estimates and funding provision in 2017.

- Evaluate the collection and supervision of the statistical data on member quantity specified in the unit’s report and based on the data on trade union revenues.

- Evaluate the implementation of the Resolution No. 07b/NQ-TLD dated January 21, 2016, Resolution No. 09c/NQ-BCH of the Committee of Vietnam General Confederation of Labor; Regulation No. 3601/QCPH-TLD-BHXH dated September 20, 2016 which is introduced by the Vietnam General Confederation of Labor (hereinafter abbreviated as “VGCL”) and the Vietnam Social Insurance; evaluate the direction and cooperation which are mentioned in the Decision No. 887/QD-TLD dated July 02, 2015 of the Presidium of Vietnam General Confederation of Labor (hereinafter abbreviated as “PVGCL”); evaluate the implementation of the Regulation No. 1822/QCPH/BTC-TLD dated December 08, 2014 on advantages and disadvantages in cooperating to inspect the payments for trade union contributions and the increased revenues from such contributions.

- Public service providers of trade union: evaluate the process for carrying out the budget plan in 2017. Evaluate the results of public service revenues and expenditures. Evaluate the implementation of expenditures derived from State Budget by analyzing the salaries in details; analyzing the self-management system and self-responsibility in carrying out the tasks, organizing the system, personnel and finance as specified in the regulations of the Government and the VGCL.

2. Finance and asset management of the trade union

- Evaluate the implementation of trade union revenues and expenditures and management of its budget according to the assignment of the VGCL; establish rules for making, distributing and approving the cost estimates of the inferior units as specified in the regulations of the VGCL; make, implement and disclose the cost estimate and the financial statement; inspect and instruct the inferior units to implement the mission of trade union revenues and expenditures, manage their budget, pay the trade union contributions to the superior trade unions, as well as approving the cost estimates and financial statements of their inferior units.

- Evaluate the advantages and disadvantages of each level of trade union in implementing the regulations on revenues, expenditures and budget management. Evaluate and analyze the revenue structure and the financial decentralization which affect the collection results of trade union revenues and fees.

- Evaluate the asset management according to the current regulations.

- Make a report about the results from application of self-management system, assumption of self-responsibility in using the personnel and the financial status of the trade union authorities.

II – Making of trade union cost estimates in 2018

1. Objectives and rules

Objectives

The cost estimates of the trade union budget in 2018 are feasible. They shall be made based on the actual conditions of each sector and locality, in order to make sure the receivables are collected rightly, fully and timely according to the current regulations and to guarantee that the funding source is used for carrying out the activities.

1.2. Rules

- Strictly observe the regulations of the VGCL on trade union budget. Collect the trade union contributions and fees, rectify the units’ failures in collecting such contributions and fees, especially the units or enterprises which have not yet established their trade unions.

- Cost estimates of trade union budget must be made in accordance with the Decision No. 1780/QD-TLD dated October 26, 2017 of the PVGCL promulgating the regulation on rules for making and allocating cost estimates of trade unions in 2018; the amount of receivables to be collected in 2018 must be determined.

- Continue to implement the Resolution No. 07b/NQ-TLD dated January 21, 2016 of the 11th Committee of VGCL on trade union budget in the new situation; and the Resolution No. 09c/NQ-BCH dated October 18, 2016 of the Committee of VGCL.

- Cost estimates of trade union budget shall be economic and effective and avoid wastefulness. Expenditures shall only be incurred on practical and effective activities, such as provision of trainings for trade union officials and recruitment for trade unionists, etc. Expenditures on entertainment, administration and other expenses shall be restricted.

- Within the estimate year, if the VGCL promulgates new documents related to the making of cost estimates, the units shall implement such effective documents.

2. Some principal contents about the making of cost estimates

2.1. Trade union contributions

2.1.1. Employees subject to trade union contributions

- For agencies, organizations and enterprises which establish their internal trade unions:

Confederations of labor of provinces and cities; trade unions of central branches and equivalent levels; trade unions of parent companies directly affiliated to the VGCL shall make a statistical report on the quantity of employees subject to trade union contributions as specified in the regulations of the administrative units and the units within the business operation area. The number of employees of units which has been reported shall include: the quantity of employees who are paying for their social insurance by June 30, 2017 (according to the data provided by the social insurance company as specified in Regulation No. 3601/QCPH-TLD-BHXH dated September 20, 2016), the quantity of employees in the enterprises subject to trade union contributions without paying for the social insurance, and the quantity of employees expected to be increased (reduced) within the plan year 2018.

- For enterprises which do not establish their internal trade unions:

Confederations of labor of provinces and cities; trade unions of central branches and equivalent levels; trade unions of parent companies directly affiliated to the General Confederation of Labor shall make a statistical report on the quantity of employees who have paid for their social insurance by June 30, 2017 (according to the data provided by the social insurance company) and use this data as the basis for determining the quantity of employees in the agencies, organizations or enterprises that establish the internal trade unions.

Confederations of labor of provinces and cities; trade unions of central branches and equivalent levels; trade unions of parent companies directly affiliated to the General Confederation of Labor shall make a report to explain about the differences in the number of employees specified in the cost estimates of the trade union in 2018 compared to the number specified in the labor statistical report of the General Confederation within the same year.

2.1.2. Wage fund used as a basis for collecting trade union contributions

The wage fund is used as the basis for collecting trade union contributions in 2018 at the units of which the average salaries of employees used for making social insurance payments for the first 06 months of 2017 have been increased (according to the data provided by the social insurance company). Such number is multiplied by the number of employees subject to trade union contributions specified in section 1.1 hereof.

2.1.3. Estimates of trade union revenues collected within the business operation area

The amount of trade union revenues collected within the business operation area of the confederations of labor of provinces and cities in 2018; trade unions of central sectors and equivalent levels; trade unions of parent companies directly affiliated to VGCL shall be used as the data for units to import to the software of trade union contributions in 2018, according to the Guideline No. 1305/HD-TLD dated August 15, 2017 and the Plan No. 48/KH-TLD dated October 30, 2017 of the VGCL on collection of trade union contributions within the business operation area via Vietinbank. The data shall be imported before January 01, 2018.

2.1. Trade union fees

The amount of trade union fees collected in 2018 is determined based on the actual quantity of unionists in the internal trade unions. The salaries and allowances of such unionists are specified in Chapter IV of the Decision No. 1908/QD-TLD dated December 19, 2016 of the VGCL. The average amount of trade union fee collected from 01 unionist of confederations of labor of provinces and cities in 2018, trade unions of parent companies directly affiliated to VGCL shall be no less than the average amount collected from 01 unionist specified in the annual final account of 2016.

2.3. Other revenues

On the basis of the financial statements of 2016 and 2017, trade union units shall estimate other revenues in the 2018’s estimate with an aim to stabilize and increase the sources of revenue.

2.4. Trade union expenditures

- The cost estimates shall not exceed the amount of revenues distributed and used within the year according to the regulations of the VGCL. An amount of expenditure used to carry out the key tasks must be specified in the cost estimates. Such tasks must be carried out in a practical manner and for the benefits of unionists and employees and to prevent wastefulness, etc. Investments in basic construction, reconstruction and procurement of equipment and assets shall be derived from the trade union budget. Also, the trade union contributions required to be paid to the VGCL shall be determined in accordance with the regulations.

- Trade unions and public sector entities shall take the initiative to apply the self-management system and assume responsibility for the use of personnel and provision of block grants according to the current regulations of the State and the VGCL.

- Trade union budget shall be distributed in accordance with the Resolution 07b/NQ-TLD dated January 21, 2016 of the Committee of VGCL; Decision No. 1908/QD-TLD dated December 19, 2016 of the PVGCL; Decision No. 887/QD-TLD dated July 02, 2015 of the VGCL.

- In 2018, 68% of the total revenues from trade union contributions are distributed for the internal trade unions and 32% of such revenues are distributed for the superior trade unions.

- Expenditures of the superior trade unions shall be planned in accordance with the Decision No. 826/TLD dated July 07, 2014 of the PVGCL providing index on revenues and expenditures of trade union authorities; Decision No. 1911/QD-TLD dated December 19, 2016 promulgating the Regulation on standards and expenditures of the trade union authorities; Guideline No. 849/HD-TLD dated June 08, 2017 providing guidance for amending the Decision No. 1911/QD-TLD.

- Expenditures of the internal trade unions shall be planned in accordance with the Decision No. 1910/QD-TLD dated December 19, 2016 of the VGCL on revenues and expenditures of the internal trade union and management of its budget.

- Cost estimates of the trade union budget in 2018 of the units using redundant trade union revenues shall be made in accordance with the Decision No. 1908/QD-TLD dated December 19, 2016. Financial investments and economic activities shall be carried out in accordance with the Decision No. 1912/QD-TLD dated December 19, 2016 of the PVGCL. Details about the use of such redundant trade union revenues shall be specified in the estimate documents and such revenues shall be used within the devolved power of the VGCL.

III - Implementation

1. 02 sets of documents on trade union cost estimates in 2018 shall be submitted to the VGCL, including the following forms:

- A general report on the cost estimates of the trade union budget (using form B15-TLD).

- A report on the cost estimates of the public sector entity (using form B15b-TLD).

- A list of the units, organizations and enterprises which pay for the trade union contributions, including: employees and unionists, etc., within the administration and business cooperation areas (using the form imported to the software of trade union revenues via Vietin Bank).

- Forms 01a and 01b which are enclosed with the Decision No. 887/QD-TLD dated July 02, 2015 of the PVGCL on Regulation on contributions used for direction and cooperation.

- A list of the specialized unionists and other employees of the superior trade unions of internal trade unions (by October 30, 2017).

- A report on the process for carrying out the budget plan in 2017. Such report must specify the cost estimates for 2018.

2. Procedures and deadlines for submitting the cost estimates

- Cost estimates of units must be adopted by the Standing Committees of Confederation of Labor of provinces or cities, trade unions of central branches and equivalent levels and trade unions of parent companies directly affiliated to the VGCL before being submitted to the VGCL (Financial Board).

- Deadline for submitting the cost estimates is December 15, 2018.

3. Methods for approving the cost estimates

- Submit the documents on collection and payment limits to the Standing Unit of the PVGCL for approval but do not invite other units to work with the VGCL to approve such documents.

- The General Confederations of Labor of provinces and cities, trade unions of central branches and equivalent levels, trade unions of parent companies affiliated to the General Confederation of Labor shall guide the inferior trade unions to implement this guideline based on the actual conditions.

If any problems arise during the implementation process, the units shall send feedback to the General Confederation (finance board) for solution./.