Decree No. 131 / 1967 Coll.
Decree of the State Commission on Finance, Prices and Wages on Enhancing Material Interests and Responsibility of Economic Organisations Leaders
Valid
Effective from 01.01.1968
131
DECLARATION
State Commission on Finance, Prices and Wages
of 13 December 1967
on the deepening of the material interests and responsibilities of managers of economic organisations
According to Article 4 of Act No. 113 / 1965 Coll. in agreement with the Ministry of Finance and the Central Council of Trade Unions:
Scope
(1) This decree regulates material incentives in economic organisations covered by Decree No. 101 / 1966 of the State Commission on Finance, Prices and Wages Coll., on the remuneration of work in the new system of planned management of the national economy, to enhance the personal material interest of managers in the long-term development of organisations and to meet social needs and to strengthen the responsibility of those workers for the results of the organisation's activities.
(2) The Decree applies to the Directors-General and to the Directors-General of the trade directorates of trusts or trade undertakings, to the directors of national undertakings and other economic organisations managed by central bodies and national committees (hereinafter referred to as "the undertaking"), to their Deputy Directors and to the directors of major establishments (hereinafter referred to as "managers"). The heading of the major plants shall be determined by the relevant Directors-General and, as regards the establishments of the enterprises centrally managed, by the competent central authority.
(3) The Directors-General and the Directors-General may decide in agreement with the relevant trade union body for which other managers of the critical services of the undertaking or designated establishment are to be treated in accordance with this Decree.
(4) The heading of the managers covered by this decree shall be indicated in the relevant collective agreement.
(5) The Association of Production Cooperatives and the Association of Consumer Cooperatives determine which provisions of this Order apply mutatis mutandis to cooperative organisations.
Substantial and liability agreements
(1) The remuneration of managers depends on a comprehensive assessment of all key aspects of the technological economic development of their managed enterprises and the economic results achieved.
(2) The basis of a comprehensive evaluation of the work and remuneration of managers is the economic results achieved and the achievement of specific, substantially agreed-in programme objectives of the enterprise, such as clarifying the technological and economic development approach, developing the principles of the new system of planned management on the conditions of internal services and their consistent implementation, modernising the production base, halting inefficient production, increasing the technical and qualitative level of the critical products, increasing the proportion of final production, in particular the supply of export and market funds, in building the reduction of construction, in the long-term development plan for the expansion and shortening of construction, improving the working environment and the safety of work, improving the economic results through the growth of labour productivity in the rational management of the labour force, ensuring proportional development of wages and quality of important investment actions, improving the quality of the labour,
(3) The specific programme objectives applicable to the remuneration of managers shall be agreed with the management officer by his senior management (authority), i.e. the Director-General of the Minister, the managers of the Directorate-General and the Director-General of the Organisation and, where appropriate, the managers of the Director-General of the Organisation, the other managers of the Organisation and, where appropriate, the Director-General of the Organisation and, as regards organisations managed by the National Committees, the directors of those organisations, the competent national committee. In doing so, they shall cooperate with the relevant trade union body and shall be based on a detailed analysis of the company's current and prospective development, in particular in terms of optimally ensuring social interests and needs and taking into account the nature of the post of manager. The supporting documents for setting these objectives shall be drawn up by the production, technical, economic and commercial components of the superior body, with the participation of its competent collective bodies (colleges, administrative committees) and the undertaking to which the tasks relate.
(4) The programming objectives are set out in the agreement on material interest and responsibility (hereinafter referred to as "the agreement '), concluded in writing by the manager and senior manager (the institution), in principle in advance for a period of three to five years in line with the degree of clarity of the technological economic concept of the development of the enterprise. In local economic enterprises managed by national committees, the managing national committee shall conclude an agreement with the senior officer. In addition, the agreement shall lay down the specific conditions of material interest and responsibility of the manager in accordance with other provisions of this Order.
(5) The programme objectives set out in the agreements must not be contrary to the provisions of Government Regulation No 100 / 1966 Coll., on the planned management of the national economy determining the scope and manner of setting binding tasks and binding limits for undertakings.
(6) If, for objective reasons, the longer-term development of an undertaking is not yet clarified, the agreement may exceptionally be concluded for a shorter period but for at least one year. In such cases, the development of a long-term technoeconomic concept for its development will be included in the programme objectives of the enterprise.
(7) The conditions under which it may be amended before its expiry may also be modified in the Agreement. The agreement shall cease as soon as the manager ceases to perform the duties for which he has been entered into.
(8) Agreements concluded by a superior manager (authority) with the manager of an undertaking commit that undertaking to pay the wage requirements resulting from the agreement.
Forms of material interest and responsibility
(1) Leaders are materially interested in the economic results of the enterprise in the form of shares in these results, in particular in the increase in profits, applicable gross income, etc. The participation in economic results may be granted to managers only on the basis of an evaluation of the economic results achieved and the achievement of the programme objectives set out in the Agreement, concluded in writing in accordance with Article 2. Premiums shall not be granted to managers.
(2) The provisions on the provision of shares in economic results, contained in Sections 20 to 24 of Decree No 101 / 1966 Coll. and in collective agreements, apply only to the managers referred to in Section 1, provided that there is nothing else in that decree or in the agreements concluded pursuant to Section 2.
(1) Prior to the conclusion of the agreement referred to in Article 2, the level of the shares in the economic results shall be determined by the senior manager (authority) in the agreement with the relevant trade union in accordance with the concept of wage developments of the relevant management stage, depending on the economic results of the undertaking achieved in the previous period and taking into account the increase in these results over the years covered by the agreement.
(2) The senior management shall decide on the resulting share of the economic results for the current year, in cooperation with the relevant trade union authority, on the basis of an analysis and a comprehensive assessment of the results achieved and the achievement of the agreed programme objectives and tasks.
(3) Where serious deficiencies in the quality of production or services have been identified in the comprehensive assessment, or where there have been defects in supplies for the foreign market, price regulations have been infringed, in particular the agreed or determined level of prices has not been exceeded, wage developments have not been ensured in accordance with the concept confirmed by the competent authority, the safety and health regulations at work have been infringed, the long-term plan for reducing the distribution and shortening of construction time has not been complied with, serious parameters and conditions of construction have not been met, or other serious deficiencies in the management work of the manager, in particular in the achievement of the agreed programme objectives, the senior management (authority) is obliged to reduce or fail to commit, with due cause of interest; the senior manager (authority) shall also reduce the proportion by an appropriate proportion of the increased interest on operating and investment bank loans or periodic penalty payments that the undertaking has had to pay.
(4) The senior management (authority) may increase the share accordingly if the personal merit and initiative of the senior manager have been achieved particularly well, or if exceptional tasks have been provided, the performance of which has not been reflected in the improvement of the company's economic performance, but was of importance in terms of social interest, such as a desirable reduction in the level of product prices, while satisfying demand, etc.; the senior manager (authority) will generally increase the share by a certain part of the interest earned on the company's long-term deposits in bank accounts and a part of the proceeds from the purchase of bank bonds. The form of increase in shares in such cases shall in principle replace the provision of extraordinary remuneration.
(1) The shares in the economic results for the current year and the advances granted under the general rules contained in the collective agreement shall be transferred to the personal accounts set up by the company for each manager pursuant to Section 24 of Decree No 101 / 1966 Coll. The manager shall be able to determine at any time the status of the funds deposited in the personal account.
(2) Two thirds of the share of the economic results determined on the basis of a comprehensive assessment for the previous year are due to the manager to whom the advances paid are settled. The remaining one-third of the share is intended for the long-term material interest of the manager.
(3) Where, in a comprehensive assessment of the economic performance of an undertaking for the previous marketing year, the deficiencies referred to in Article 4 (3) are found, the senior management (authority) shall reasonably reduce the part of the share intended for long-term material interest, provided that the penalty for such deficiencies is not sufficiently expressed by the non-recognition of the share of the economic results for the previous year; This section may also be reduced accordingly by the senior management (authority) if these shortcomings are detected during the year.
(4) After the expiry of the agreement concluded in accordance with Article 2, but not earlier than three years, the senior management shall decide, in cooperation with the relevant trade union authority, on the basis of an analysis and a comprehensive assessment of the results achieved and the achievement of the agreed programme objectives over the whole period, whether and what amount belongs to the manager of the remaining parts of the annual economic results for the long-term material interest. The three-year period shall not apply in the event of early termination of the agreement pursuant to Article 2 (7).
The results of the management and achievement of the programme objectives referred to in the previous provisions shall be evaluated by the senior management (authority) after prior observations by the relevant collective body (college, administrative committee). The management shall be informed of the conclusions of the evaluation.
(1) The shares in and advances on economic results are taxed as a one-off wage pursuant to Article 13 (1) of Act No. 76 / 1952 Coll., on payroll tax, so that the amounts due to the manager pursuant to Article 5 (2) of this Decree are deducted from the wage tax before they are transferred to the personal account and the remainder are deducted from the wage tax before the manager's payment (§ 5 (4)).
(2) The amounts due to the Head of Staff (Section 5 (2)) and transferred to a personal account shall be remunerated in a similar manner to the contributions made by citizens at the State Savings Bank.
Final provisions
(1) The personal account shall be cancelled by settling the undertaking's liabilities towards the manager at the end of his employment or by transferring him to a function not covered by the provisions of Section 1.
(2) The accounting and reporting of amounts transferred to personal accounts are governed by the State Statistical Office Directives.
(1) Agreements under Paragraph 2 for 1968 must be concluded by the end of March 1968 at the latest.
(2) The principles for the establishment of management personnel 'personal accounts, issued by the National Labour Commission on 29 October 1965 No 45.64.1 / 65 (37), and the measures issued by central authorities pursuant to them, are hereby repealed. The personal accounts set up by them shall be cancelled by settling the undertakings' liabilities towards their managers by 30 April 1968 at the latest.
This Decree shall take effect on 1 January 1968.
Minister-President:
v. Ing. Hola v. r.
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Regulation Information
| Citation | Decree of the State Commission on Finance, Prices and Wages No. 131 / 1967 Coll., on deepening the material interest and responsibility of managers of economic organisations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.12.1967 |
|---|---|
| Effective from | 01.01.1968 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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