Decree No. 154 / 1960 Coll.
Decree on farm funds for workers
Valid
Effective from 01.01.1961
154
GOVERNMENT DECLARATION
of 7 October 1960
on farm funds for workers
The Government of the Czechoslovak Socialist Republic provides:
Preliminary provisions
The achievements achieved in our national economy make it possible to set out other major challenges in economic and cultural development for the completion of socialist construction and to create a materially technical basis for the future gradual transition to communism. The basis for further rapid development of production forces, for further deepening of socialist production relations, as well as for increasing the standard of living of the people is the growing participation of all workers in the development of production, its management and control, and the administration of the state towards future communist self-government while strengthening democratic centralism. In this context, the role of social organisations, especially the Revolutionary Trade Union Movement, is increasing.
A major task of the Revolutionary Trade Union movement is to continuously create conditions for the development and full use of the workers' initiative and for the continuous expansion of their participation in management, as well as to ensure continuous growth of the material and cultural levels of workers.
Workers' business funds are an effective means of developing creative activity and ensuring their active participation in management. Workers' business funds stimulate the physical interest of all workers in the best performance of business tasks and contribute to the development of socialist competition. These funds become an effective source of social consumption. Therefore, the role of trade unions in managing the funds of these funds is further increased. The great importance of business funds for workers requires them to be adapted uniformly in all enterprises.
Establishment of farm funds for workers
(1) Workers' business funds (hereinafter referred to as "funds") may be established in national undertakings, associations and other economic organisations of the State Socialist sector (hereinafter referred to as "enterprises").
(2) The Funds are set up by the Minister or Head of the Central Office (hereinafter referred to as "the Minister") in agreement with the Central Committee of the relevant trade union. Funds in enterprises managed by national committees shall be set up by the Council of the Regional National Committee in agreement with the Regional Trade Union Council and after the opinion of the Regional Committee of the relevant trade union.
(3) In exceptional cases, the Minister and, in the case of undertakings managed by the National Committee, the Board of the Regional National Committee may establish a fund in the form referred to in paragraph 2.
(4) The provisions of paragraphs 2 and 3 shall apply mutatis mutandis to the abolition of the Funds.
Resources of farm funds for workers
(1) Funding resources are resources created by successful business management, resulting from constantly developing production on the basis of state-of-the-art technology, with uniform implementation of the plans and ensuring the ever-increasing quality and technical level of the products and the decreasing costs of their production. Exceptionally, the state budget is the source of the fund.
(2) The Minister for Finance may determine the additional resources of the Funds.
Shares of farm funds of workers
(1) The undertaking in which the general financial management adjustment is introduced (*) will receive on a quarterly basis a share of 0,4% of its total wage fund planned for the relevant quarter. The same applies to the undertaking in which the special financial management arrangements *) are introduced, as well as to the standards of personal material interest (premium fund). A company in which a special financial management adjustment is introduced without the standards of personal material interest (without the premium fund) shall receive on a quarterly basis a share of 0,6% of that wage fund.
(2) The condition for granting the share is that the company has fulfilled the sales plan, profit plan and other quarterly indicators established in advance by the Minister in the relevant quarter. In particular, the Minister sets out qualitative indicators as indicators according to local circumstances and needs.
(3) Instead of fulfilling the disposal plan, the performance plan for those undertakings which do not plan to dispose of the product is required.
Instead of fulfilling a profit plan, a profit plan shall be required:
(a) for undertakings which have other indicators for the creation of the premium fund, their fulfilment;
(b) for undertakings in which an interest other than a share of the gain or profit gain is established, * *) the fulfilment of the specified indicators;
(c) for an undertaking with a planned loss, the condition that the undertaking does not exceed the planned loss relatively.
(4) In assessing whether the company has fulfilled the profit plan (not exceeding the planned loss), the profit achieved is adjusted by the amounts resulting from such price, tariff and wage changes that were not included in the plan.
(5) Quarterly shares shall be granted on the basis of the annual share. If the undertaking fails to meet the conditions for granting the year-round share, it does not return the quarterly shares received.
(6) In the case of associations, the indicators relevant for the provision of the share are the relevant indicators for the whole production unit or other similar unit.
(7) The powers conferred on the Minister pursuant to the preceding paragraphs shall, if they are undertakings governed by national committees, be exercised by the Regional National Committee.
(1) The undertaking in which the general arrangements for financial management are introduced will receive an annual share of 0,8% of its total wage fund planned for the year in question. The same applies to an undertaking in which both the specific financial management arrangements and the standards of personal material interest (premium fund) are introduced. An undertaking in which a special financial management arrangement is introduced without the standards of personal material interest (without the premium fund) shall receive an annual share of 1,2% of that wage fund. The percentage of the annual share of the fund may be increased by 0,2% to the undertaking (whether with a general or special adjustment for financial management) if, during the period of preparation of the draft annual plan, it accepts in the annual marketing plan - or does not plan to dispose of, the performance plan - a task higher than that laid down by the supervisory authority or improves another decisive indicator set out by the minister in agreement with the central committee of the relevant trade union. The increased percentage rate shall be fixed by the Minister together with the central committee of the relevant trade union.
(2) The condition for the grant of the share is that the company fulfilled the sales plan, profit plan and other annual indicators established in advance by the Minister in the relevant year. In particular, the Minister sets out qualitative indicators as indicators according to local circumstances and needs.
(3) Instead of fulfilling the disposal plan, the performance plan for those undertakings which do not plan to dispose of the product is required.
Instead of fulfilling a profit plan, a profit plan shall be required:
(a) for undertakings which have other indicators for the creation of the premium fund, their fulfilment;
(b) for undertakings in which an interest other than a share of the gain or profit gain is established, compliance with the established indicators;
(c) for an undertaking with a planned loss, the condition that the undertaking does not exceed the planned loss relatively.
(4) The performance of the planned year-round profit or loss or not exceeding the planned year-round loss shall be assessed on the basis of the profit (loss) adjusted on the basis of a comprehensive business analysis; the comprehensive analyses are governed by specific rules.
(5) The quarterly shares paid, including extraordinary shares (Section 6), shall be accounted for in the year-round share.
(6) In the case of associations, the indicators relevant for the provision of the share are the relevant indicators for the whole production unit or other similar unit.
(7) The powers conferred on the Minister pursuant to the preceding paragraphs shall, if they are undertakings governed by national committees, be exercised by the Regional National Committee. In the cases referred to in paragraph 1, the last sentence shall be decided by the Council of the Regional National Committee, together with the Regional Trade Union Council, after a statement by the Regional Committee of the relevant trade union; in the case referred to in paragraph 1, the third sentence shall decide in agreement with the Regional Trade Council.
(1) An undertaking which, for serious reasons, has failed to fulfil the conditions laid down for the granting of a quarterly or year-round share may be granted by the Minister in agreement with the Central Committee of the Trade Union concerned. the exceptional share may not exceed the relevant proportion which the undertaking would have received had it fulfilled the conditions. The annual exceptional share shall be granted according to the result of the annual comprehensive analysis of the business. The decision to grant a quarterly or annual exceptional contribution shall also take into account the state of accident in the undertaking. The funds centralized with senior bodies and, exceptionally, the funds intended for this purpose by the Ministry of Finance shall be used to cover extraordinary shares.
(2) The Council of the Regional National Committee shall decide on the granting of extraordinary shares to undertakings managed by the National Committees in agreement with the Regional Trade Union Council and after the opinion of the Regional Committee of the relevant trade union.
(1) In an agreement with the Central Committee of the Trade Union concerned, the Minister is entitled to increase the company's annual share by up to 20% if, in the performance of its tasks, the firm has successfully developed new technology, ensured high efficiency of investment, has creatively developed workers' participation in all business problems, has continuously increased the level of socialist competition and applied its new forms, has correctly applied long-term standards, has ensured a reduction of working time by the maximum mobilisation of own resources, has continuously improved labour safety and health protection at work, or has otherwise contributed to improving the performance of its tasks and obligations towards society and the state. In order to cover the amount by which the share increases, the funds centralised with the superior bodies shall be used.
(2) The Minister is entitled, in agreement with the Central Committee of the Trade Union concerned, to reduce the annual share by up to 20% of the company, which, although it had met the indicators set out, did not ensure equal implementation of the plan, disturbed the supplier's customer relationship, did not comply with the planned product mix, achieved profits in an economically incorrect manner, did not ensure safety of work and health at work or otherwise failed to ensure its tasks and proper fulfilment of its obligations to society and the State.
(3) The provisions of the preceding paragraphs shall also apply to undertakings managed by national committees; However, the Council of the Regional National Committee, in agreement with the Regional Trade Union Council and after the opinion of the Regional Committee of the relevant trade union, shall be entitled to increase or shorten the annual share.
Use of farm funds for workers
(1) In undertakings in which the general arrangements for financial management are in place, as well as in undertakings in which the specific arrangements for financial management and the standards of personal material interest (premium fund) are in place, the funds of the Funds are used:
(a) for cultural, social, health and physical purposes, in particular for investments and other objects of lasting value and for the provision of contributions to corporate housing;
(b) to grant loans (interest-free or interest-free) to employees of the company for the composition of the membership of the housing cooperative *) and for the construction of apartments and family houses, as well as for loans for the purchase of family houses in border areas by state-socialist organisations;
(c) to provide contributions to cooperative housing;
(d) to grant scholarships to employees of the undertaking;
(e) for the payment of spa and holiday vouchers for employees of the undertaking, allocated for special credit;
(f) the collective and individual remuneration of employees of the enterprise by non-monetary remuneration for outstanding work, in particular in the socialist competition, in the improvement movement, for creative participation in the management of the enterprise and for addressing all the problems of production, productivity of work, the development of new technology and economy, the correct application of long-term standards, the creation of conditions for shortening working time by maximum mobilisation of own resources, or for reasons laid down in implementing rules, and not more than 10% of the Fund funds.
(2) The provisions of paragraph 1 shall also apply to undertakings in which a special financial management arrangement is introduced without standards of personal material interest (without premium fund). In the cases referred to in point (f) of paragraph 1, funds from the Fund may be used in such undertakings to pay remuneration; a total of 30% of the Fund's funds may be used for the payment of the remuneration.
(1) The Fund's resources are to be used mainly for the acquisition of permanent values.
(2) Expenditure relating to the Fund may be effected only up to the amount of appropriations actually entered in the Fund.
(3) The Fund's resources are used according to the annual budget drawn up under the five-year budget. The draft budgets shall be drawn up by the competent authority of the Revolutionary Trade Union Movement in cooperation with the management of the enterprise. The budget shall be approved by a conference of business delegates convened by the relevant trade union body or a membership meeting of the basic organization of the Revolutionary Trade Union Movement. The budgets are an integral part of the collective agreements of the employees of the company with its management.
(4) The head of the undertaking shall be responsible for carrying out the tasks of managing the undertaking from the budget of the Fund contained in the collective agreement and for the sound accounting agenda relating to the management of the Fund.
(5) An advance may be granted by the undertaking for certain budgeted expenditure of the Fund of a permanent nature. The advance shall be granted on the basis of the next shares.
(6) The amounts recovered from the transfer or disposal of the assets of an undertaking financed by the Fund are in the fund.
(7) Unused funds are not forfeited at the end of the year and are transferred to next year.
(1) In agreement with the competent authority of the Revolutionary Trade Union Movement, the director of the undertaking may determine in advance what amount (quarterly, year-round) each plant will receive from the fund if he meets the indicators that the director of the enterprise will determine in advance in agreement with the competent authority of the Revolutionary Trade Union Movement. In doing so, it is necessary to select indicators which ensure the good work of the whole enterprise and which may influence the plant. Such indicators can be an indicator of production and cost reduction, product mix, quality, injury reduction and other indicators.
(2) If the establishment fulfils the specified indicators, it will receive a fixed amount from the Fund (paragraph 1). If the Fund's funds are not sufficient to pay this amount, it shall be supplemented by a superior body from centralised funds. Once the funds have been raised to the fund, the undertaking shall be obliged to repay the amount received from the supervisory authority. In duly exceptional, economically justified cases, the superior authority may, after having expressed the competent authority of the Revolutionary Trade Union Movement, waive this obligation in whole or in part.
(3) The detailed provisions will be laid down in the implementing rules (Section 14).
Control of the financing and management of farm funds of workers
Management and use of the fund are controlled by the membership meetings of the basic organization of the Revolutionary Trade Union Movement and the competent authorities of the Revolutionary Trade Union Movement. The rules on control of financing and business management shall also apply to their funds.
Transitional and final provisions
(1) The companies will receive shares for the year 1960 in accordance with the existing regulations applicable to them on 31 December 1960.
(2) The undertaking in which a special financial management adjustment is introduced on 31 December 1960 shall transfer to its investment account from the Fund funds intended for the purposes referred to in Paragraph 9 (1) (a) of Decree No 65 / 1957 of the Czech Republic and 30% of the supplement to the 1960 share; the firm may transfer higher amounts from such a supplement to its investment account.
(3) If, after 31 December 1960, a general financial management adjustment is introduced in an undertaking, the undertaking shall transfer to its premium fund 30% of the funds entered in the fund on the date on which the adjustment was introduced in the undertaking; In addition, the undertaking transfers 30% of the shares it received after that date to its premium fund at the rate laid down in this Decree for undertakings in which a special financial management adjustment is introduced.
(4) Starting on 1 January 1961, the undertaking shall use the Fund's funds, if not the cases referred to in paragraphs 2 and 3, for the purposes set out in Section 8.
For serious reasons, the Government or the authority empowered by it may allow derogations and derogations from this decree or provide for derogations for certain sectors.
In order to implement this decree, the relevant ministers shall issue more detailed provisions in agreement with the central committee of the relevant trade union and the Minister of Finance. For local economy enterprises, such a regulation shall be issued by the Minister of Finance in agreement with the Central Committee of the relevant trade union and after consulting the Councils of the Regional National Committees.
Government Decree No 65 / 1957 Ú. l., on the business funds of workers, Government Decree No 86 / 1958 Ú. l., on the modification of the business funds of workers, Government Decree No 96 / 1959 Ú. l., on the further modification of the business funds of workers, and all provisions issued for their implementation are hereby repealed.
This Decree shall take effect from 1 January 1961.
Broad v. r.
*) Decree Minister of Finance No. 123 / 1960 Coll., on the financial resources of certain economic organisations of the state socialist sector and on the reimbursement of their losses; Decree of the Minister of Finance No 152 / 1960 Coll., on the financial resources of economic organisations managed by national committees and on the payment of their losses.
* *) § 11 of Decree Minister of Finance No. 123 / 1960 Coll., or § 11 of Decree Minister of Finance No. 152 / 1960 Coll.
*) Act No. 27 / 1959 Coll., on cooperative housing construction.
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Regulation Information
| Citation | Decree No. 154 / 1960 Coll., on Business Funds of Workers |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.10.1960 |
|---|---|
| Effective from | 01.01.1961 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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