Phuoc Hoa Rubber streamlines its apparatus and improves management efficiency
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In the context of the rubber industry facing many challenges in terms of costs, labor productivity and the need to restructure the apparatus, Phuoc Hoa Rubber Joint Stock Company has pioneered in streamlining the apparatus – a step demonstrating the determination to innovate, the sense of responsibility and the long-term vision.
Scene of the meeting of the Working Group on innovation and organizational arrangement of Phuoc Hoa Rubber
Dramatic Streamlining – Cut Over 51.3% of Indirect Labor
The total number of management staff after the reorganization and streamlining was reduced from 343 employees to 167 employees, equivalent to a reduction of 176 people (more than 51.3%). Of which, the number of management staff in the agency block was reduced from 139 employees to 76 employees; the number of management staff in 6 production teams (6 farms) was reduced from 174 employees to 78 employees; the number of management staff in 2 processing plants and 2 wastewater treatment systems was reduced from 20 employees to 13 employees.
As a result, the ratio of indirect labor to direct labor according to the norm is 5.98% (167 indirect laborers/2,792 direct laborers according to the norm). In 2026, 2027 and 2028, the Company plans to open more than 2,500 hectares, the Company’s normed labor will increase from 2,792 normed laborers to 3,355 normed laborers. At that time, the Company’s indirect labor/direct labor ratio according to the norm will continue to decrease below 6%.
In order to screen and enhance the role and responsibility of the security force throughout the Company. The Company dissolved the Security Teams at 6 Farms and the Construction and Construction Enterprise, transferring their functions and tasks to the direct management and operation of the Company’s Security Inspection – Military Department. After a period of stable operation, the Company will hand over the security force to the management and operation units before June 30, 2025. For Security in the agency area, the Company will hire a security company.
The Company’s smallholder latex purchasing apparatus has 14 employees, directly directed and managed by the Company’s Board of Directors. Salaries are based on the number of tons of latex purchased and the quality of the products produced.
Before implementing the streamlining, reducing the management model from 3 levels to 2 levels, the total number of indirect workers at the farms under Phuoc Hoa Rubber was 174 people. After the farm was abolished, this number was reduced to 78 people, equivalent to a reduction of 96 workers, accounting for 55.17%. The farms with the highest reduction include Bo La Farm and Nha Nai Farm, each reducing 19 people; Tan Hung Farm reduced 18 people; Lai Uyen Farm reduced 15 people… The streamlining not only helps reduce costs but also creates conditions for closer and more flexible management.
Regarding the direct labor force, according to the 2025 norm, the Company plans to employ 2,792 people, of which 2,328 people will be for exploitation, 214 people for processing and purchasing, and 250 people for auxiliary services.
Workers exploiting trees in the garden
Opening up expectations for increased productivity and income
Not simply a matter of “cutting back”, the process of streamlining the apparatus at Phuoc Hoa Rubber is carried out in a systematic manner, respecting the legitimate rights of employees. Redundant staff are assigned suitable jobs or supported to retire according to the regime, ensuring harmony between the interests of employees and the development requirements of the enterprise. Income levels are adjusted in the direction of linking production and business efficiency, motivating the workforce to improve productivity and sense of responsibility.
The process of streamlining the apparatus is carried out according to a roadmap, ensuring the legitimate rights of workers and in harmony with production requirements. Redundant staff are assigned suitable jobs or supported to retire according to current regulations.
Phuoc Hoa Rubber’s pioneering in streamlining its apparatus is a positive signal in the entire Vietnamese rubber industry. Streamlining is not just about reducing people – it is about improving the quality of management, increasing the speed of work processing and responding better to market fluctuations. This is a testament to Phuoc Hoa Rubber’s innovative vision – ready to change for sustainable development.
