Vietnam National Coal Mineral Industries Holding Corporation Ltd. (Vinacomin) said that it has cut 10% from staff salaries compared to last year, and there may be more to come.
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| Cost-cutting at Vinacomin spells pay cuts for employees |
He added that Vinacomin would only be able to ensure the continued rates from 2011 for pit workers.
At a recent meeting to review the group’s performance in the second quarter, Bien said that the average salary of Vinacomin employee was just VND7.2 million (USD342.8) per month compared to VND7.7 million (USD366.6) in 2011.
According to the group's management board, despite making higher profits than the year before, there were no plans for those profits to be reflected in the pay of workers.
Vinacomin is seeking the PM's approval to cut coal export taxes to 10%. As of June their inventory stood at 8.5 million tonnes, pushing up borrowing costs. The rise in environmental fees and taxes have also added to manufacturing costs by around VND 2.2 trillion (USD105 million).
Beginning July 1, when electricity prices are increased, coal price also went up by 10-11.5%. Still, Vinacomin reported losses of VND8.5 trillion (USD407 million) as a result of selling lower than market prices. Many other State-owned corporations and groups, including EVN and PetroVietnam, have cut staff salaries by anywhere from 5% to 30% for similar reasons.
