Allow major state-owned firms to set wages independently: ministry

By Doan Loan   June 7, 2019 | 04:00 pm GMT+7
Allow major state-owned firms to set wages independently: ministry
Vietnam Airlines is facing a brain drain as new companies entered the commercial aviation market. Photo by Shutterstock/Rebius

State-owned corporations, including Vietnam Airlines, should be allowed to set staff remuneration on their own, the labor ministry proposes.

The Ministry of Labor, Invalids and Social Affairs' proposal would mean that top executives of Vietnam Airlines, telecommunications firm VNPT, and Vietnam Air Traffic Management Corporation will be responsible for employee recruitment, and they might see their salaries or bonuses reduced if they recruit more staff than needed. 

Their salaries range between VND40-70 million ($1,700-3,000) a month at present.

Both employees and employers could earn bonuses worth up to two-months’ pay if the company reports an increase in profits at the end of the year.

These companies can increase their salary funds to pay highly skilled workers who have been receiving low wages in the 2016-2018 period, the proposal says.

Several state-owned companies have been asking for a new mechanism to pay staff competitive wages as they are losing talents to private firms offering higher salaries.

Vietnam Airlines have been paying its Vietnamese pilots wages which are 60 percent that of foreigners, while VNPT pays its skilled labors 70 percent of the market rate, according to the ministry.

Duong Tri Thanh, general director of Vietnam Airlines, said last month that the airline was facing a brain drain as new companies entered the commercial aviation market.

 
 
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