Pulling 1.7 tons of coffee to pay social insurance
Coffee farms such as Ia Sao 1, Ia Sao 2, Company 706 (under Vietnam Coffee Corporation) own thousands of hectares stretching across Ia Grai, Dak Doa, Chu Pah districts, Gia Lai province.
For a long time, coffee prices have decreased, causing many difficulties for the lives of thousands of workers. However, in the past 2-3 years, coffee prices have suddenly increased sharply, sometimes ranging from 23,000 - 29,000 VND/kg of fresh produce, helping many workers improve their income from production contracts.
From 2023, the leaders of Ia Sao 1 and 706 Coffee Companies require employees to allocate 1.7 tons of coffee/year/person to pay social insurance. In addition, depending on the salary level, workers also have to pay an additional 5 - 10 million VND/person.
Ms. T (residing in Ya Yok commune, Ia Grai district) was upset: "Every year, my husband and I pay social insurance at level 5, level 6 for about 25 - 28 million VND/person. Now the company collects 1.7 tons of coffee at market price of 43 million VND, plus the amount paid directly, the company collects social insurance in excess of the standard".
Similarly, Mr. D (residing in Ia Sao commune, Ia Grai district) said: "In previous years, I paid social insurance about 15-18 million VND/year. Now the company has deducted 1.7 tons of coffee and 5 million VND, equivalent to double the amount. This greatly affects the rights of me and many other workers.
Policy of Vietnam Coffee Corporation
Mr. Trinh Xuan Bay - Director of Ia Sao 1 Company - said that paying social insurance by coffee is the policy of Vietnam Coffee Corporation, which was discussed and discussed with employees. This policy is applied in a 5-year cycle (2023 - 2027).
According to Mr. Bay, previously, coffee prices were low, only 5,000 - 10,000 VND/kg of fresh fruit, causing many workers to owe social insurance contributions, even abandoning their contract gardens. At that time, coffee companies must pay social insurance for workers and support the cost of materials, fertilizers, and clean water.
Vietnam Coffee Corporation then approved the plan to convert social insurance to coffee output.
Specifically, after each harvest, the company will allocate 1.7 tons of fresh coffee/person to pay insurance. If coffee prices increase, the difference will be included in corporate revenue.
Mr. Bay said that when coffee prices are low, workers do not have opinions on this option. However, when prices increased sharply, some workers reacted.
"Through the survey, many workers are still excited because the high coffee price helps them make a profit of 200 - 250 million VND/year, even after deducting costs for fertilizer, land, clean water, social insurance...", Mr. Bay said.
In response to the workers' feedback, representatives of Ia Sao 1 Company and Company 706 said that they will take note of the opinions and discuss them with Vietnam Coffee Corporation to propose appropriate adjustments.
A representative of Gia Lai Provincial Social Insurance said that the insurance agency only collects social insurance in cash from the enterprise. The collection of social insurance between enterprises and employees is a separate agreement, which must ensure the harmony of interests of both parties.
