After restructuring and merging units, Vietnam Railways Corporation has achieved initial results with a streamlined organization and growing revenue...
Pressure, hard work, but higher income Sharing with Giao thong Newspaper reporter before the Thong Nhat passenger train to the South one afternoon at the end of the year, Mr. Nguyen Thanh Trung, a train driver at Hanoi Locomotive Enterprise said: "The train driver team went up today to pull the train all the way to Da Nang, it was very stressful when the level crossings and self-opened paths through the railway were dense."
The restructuring and merger of units and enterprises under the Vietnam Railway Corporation has been initially successful, with many production and business units performing well and workers' income increasing. Photo: Ta Hai.
Two years ago, when working at Yen Vien Locomotive Enterprise, the train crew only had to travel short distances. Since January 2023, Yen Vien Locomotive Enterprise merged with Hanoi Locomotive Enterprise, the train crews have been arranged and assigned tasks to travel all routes, including long-distance trains. "I have been with Yen Vien Locomotive for more than 27 years, when merging, many other train drivers were very worried. Before, we mainly traveled by section trains, about 100 - 150km. But coming here, pulling trains all the way to Da Nang, it is more difficult. In return, the income has improved, an average of about 10 million VND/month, so the brothers can work with peace of mind", Mr. Trung confided. Mr. Truong Quang Toan, Deputy Head of Vehicle Management Department of Railway Transport Joint Stock Company, said that he will officially "demoted" from November 1, 2024 - the day the company comes into operation after merging Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company. Previously, he held the position of Head of Vehicle Management Department, Hanoi Railway Transport Joint Stock Company. The rearrangement and reassignment of this task is not only for him but also for many other leaders in both companies. Previously, when the two businesses were still separate, when they needed carriages, they would have to rent from each other, and the procedures would be more complicated. Now, wherever the carriages are needed to be lined up, they can be mobilized easily, without distinguishing which unit's carriages. "I myself have also learned from my colleagues and the direction and management from the leaders from the former Saigon Transport Company," Mr. Toan shared. Many benefits, no worries Talking to Giao thong Newspaper about the effectiveness after two years of merger, Mr. Nguyen Ngoc Thang, Director of Hanoi Locomotive Enterprise shared that before the merger, many people were also very worried. When merging Yen Vien and Hanoi Locomotive Enterprises, of course, some departments and divisions with the same functions and tasks will only have one, leading to excess deputy department heads. At the same time, after the merger, the total number of staff and workers will be up to 1,030 people. To ensure enough jobs and stable income for that many workers, the two units had previously made plans and prepared carefully, especially having to do a good job of ideological work. One year before the merger, both units did not appoint staff; if a leader at the head level retired, the deputy leader would be in charge. After the merger, the regulations, mechanisms and policies were reviewed and adjusted to suit the workers in all departments, from repair to train driving. During the implementation process, promptly adjust and resolve any arising problems and shortcomings. After only 6 months, the operation of the enterprise after the merger has stabilized, especially the mindset of the workers, no longer distinguishing between "Yen Vien" or "Hanoi". Regarding the Railway Transport Joint Stock Company, Mr. Do Van Hoan, Chairman of the Board of Directors, said that although it has just started operating, the benefits can be clearly seen: Reducing intermediaries, concentrating resources on facilities, machinery and equipment. Specifically, reducing 5 departments, 3 branches, and a wagon factory. The planned number of employees is 4,744 people, compared to the merger plan submitted in 2022, 619 people are saved (11.52% reduction), compared to the time before the merger, 133 people are saved (2.73% reduction). "The most exciting thing is that after the merger, production and business activities are very good. Revenue is expected to grow by about 18% compared to the same period in 2023," said Mr. Hoan. Initial success Looking back at the journey of restructuring and merging units and enterprises under the Vietnam Railway Corporation over the past two years, Mr. Dang Sy Manh, Chairman of the Board of Members of the Vietnam Railway Corporation, said that this has been initially successful. Mr. Manh said that before proposing and submitting to competent authorities the plan to arrange affiliated units, the corporation clearly recognized the shortcomings and overlaps. The most obvious is with the two railway transport companies Hanoi and Saigon. In terms of model, each company has many focal points with similar functions. For example, at a station area, each company must arrange a group to work on passenger transport, a group to work on freight transport and set up branches in key areas. The unit has proposed to the competent authority a plan to arrange and restructure the three project management, locomotive and transport blocks. The three project management boards were merged into one, operating from December 1, 2022. Five locomotive enterprise branches were merged and restructured into three branches, operating from January 1, 2023. Two transport joint stock companies merged into the Railway Transport Joint Stock Company, operating from November 1, 2024. After restructuring these units, the apparatus was streamlined; the workforce was rearranged more reasonably, indirect labor was reduced, and costs were reduced. For the locomotive block, a preliminary calculation of 134 billion VND per year was saved compared to before. From 2022, after many years of being affected by the Covid-19 pandemic, railway transport began to make a profit.
After the merger, the Railway Project Management Board has reduced 6 departments, saving costs: Reducing 15% of total management costs/total revenue; average income in the first 11 months of 2024 reached 25.5 million VND/person/month, an increase of 214.81% compared to before the merger.With 3 locomotive enterprise branches, 12 departments, 1 locomotive station, 2 locomotive driving teams were reduced. Costs saved in 2023 include: Reducing 134 billion VND, the 2024 plan is reduced by 30 billion VND. Average income compared to before the merger includes: Indirect labor: nearly 9.6 million VND/person/month (up 13.65%), direct labor: more than 10.6 million VND/person/month (up 23.51%).For Railway Transport Joint Stock Company, the average salary of employees is more than 10.8 million VND/month, an increase of 29.14%.
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