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Employees strike over social insurance
More than 800 workers at HCM City’s Duc Quan Textile and Garment Company were on strike several days ago because the company has not paid social insurance for them since last September.
At present, the company owes HCM City Insurance Company VND2,000 billion (US$125,000), so employees are unable to enjoy any social insurance support when ill or during pregnancy or retirement.
Many other enterprises throughout Vietnam also owe billions of dong in compulsory social insurance. This seriously violates employees’ rights.
There are also related strikes in Dong Nai and Binh Duong provinces and in Hanoi.
"We were afraid of losing our jobs, so when we realised they were not buying social insurance for us, but were still taking a part of our salaries, we kept silent," said Anh Vu, a worker for Bridge Construction Company 7.
"However, in the end, we could not keep silent any longer," said Pham Nhat Minh, another worker.
"The company also finds a way not to pay compulsory social insurance by signing contracts for two-month periods," said Nguyen Thi Binh, a worker for the Fruits and Vegetables Processing Company in Hanoi.
According to the statistics supplied by the Viet Nam General Confederation of Labour, hundreds of enterprises nationwide owe insurance agencies nearly VND2,000 billion ($125 million) in contributions.
Truong Trong Thang, deputy director of Ha Noi Insurance Company said that the total contributions of Hanoi City enterprises from June to August reached VND127 billion ($7.9 million).
Under the Law on Social Insurance, within 30 days from the date of signing a labour contract, an employer must submit an application for compulsory social insurance to a social-insurance agency.
Employees have the right to hold social insurance worth 23 per cent of their basic monthly salary. Employers must pay 17 per cent and employees 6 per cent.
With this cover, employees can enjoy financial support during sickness – and a pension.
However, many employers not only avoid paying the fees, but also illegally use the contributed money, said Pham Van Manh of Hai Phong City Insurance Department.
Deputy Minister of Labour, Invalids and Social Affairs, Le Duy Dong, said that if the situation was not resolved, the social-insurance fund would become unbalanced and, eventually, be unable to fulfil its obligations.
According to Thang, some enterprises illegally use contributed funds for other business.
Ngo Doan De, from Bridge Construction Company 7, admitted "we have yet to pay compulsory social insurance for our workers due to chronic losses."
However, he said the company would pay off its loans by the end of the year.
Because of low pay, many workers in the company have given up their jobs without receiving a social-insurance book. This means they have no support in time of need.
The law states that companies that refuse to pay all contributions can have their banks accounts frozen. However, there are no guidelines on implementing the law, said Manh.
Ha Noi Insurance Company has just filed a lawsuit against their four big debtors – Bridge Construction Company 7 with a debt of VND4.5 billion ($281,250), Chien Thang Garment Jointstock Company, VND4.1 billion ($256,250), Orion Hanel Picture Tube Company, VND4.5 billion ($281,250) and Ha Noi Machinery Company, VND2.1 billion ($131,250).
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