Social insurance payment with coffee: how do the directors of two companies explain?

Coffee company leaders will hold a meeting to gather employees' opinions on paying social insurance with coffee, following a report from Tuoi Tre newspaper.

Many contract workers at coffee companies in Gia Lai are upset about collecting social insurance by products - Photo: TAN LUC

Regarding the reflection of workers' frustration when paying insurance with coffee on Tuoi Tre Online , on February 17, the leaders of Ia Sao 1 Coffee Company and 706 Coffee Company (members of Vietnam Coffee Corporation - Vinacafe) in Gia Lai provided information.

Accordingly, businesses will record workers' thoughts and aspirations and report and propose to the governing body, the Vietnam Coffee Corporation.

Product contract should be collected by product?

Mr. Trinh Xuan Bay - Director of Ia Sao 1 Coffee Company - said that the company is managing 500 hectares of coffee gardens, with nearly 300 workers assigned to social insurance.

In the contract between the two parties, there is a part of collecting to implement policies for workers, collected by products at a rate of more than 1.7 tons/year.

According to Mr. Bay, the company acts as an intermediary for employees to pay insurance through the company.

The company has a lump sum plan to collect social insurance and other payments calculated by product. But when working with the insurance agency, it is required to pay in cash according to the workers' salary scale.

Mr. Trinh Xuan Bay (left) - Director of Ia Sao 1 Coffee Company - Photo: TAN LUC

Because the contract is based on products, the income to implement the insurance regime for employees is also collected by products. However, when paying insurance, it is based on the salary scale and paid in cash, the company does not pay coffee for social insurance.

The remaining amount after paying insurance will be included in the business cost and we promise not to collect more when the price drops.

"At the time of developing the contract plan, the unit price of 10,000 VND/kg was reasonable, but the current price is not considered reasonable by the workers. In the spirit of seeking feedback, if anything is unreasonable or not guaranteed, we will meet with the workers to grasp their thoughts and wishes to propose to the corporation.

Conflicts may arise during the implementation process, and both parties need to review and discuss to understand and share. After working with the relevant parties, we will have a specific report on the corporation," said Mr. Bay.

Proposal to reward employees for good company profits

Meanwhile, the product collection rate for social insurance purposes at Coffee Company 706 is nearly 1.5 tons/year. Mr. Tran Minh Tuan - director of the company - said that the product collection has been implemented in 2 cycles. In the previous cycle, people were very in agreement, so this cycle 100% continued to receive the contract.

According to Mr. Tuan, when workers saw the price increase, they compared the cost price and the market price, and the difference was profitable for the business, so they found it unreasonable. But in the previous cycle, the cost price was 8,500 VND/kg, the selling price was 7,000 VND/kg, so the business had to compensate for the loss, at that time the workers had no opinion.

The company's leaders said that according to regulations, the two sides will only renegotiate the contract plan when policies change, and will not negotiate based on market prices.

The workers' contract with Ia Sao 1 Coffee Company shows that the insurance and union fees each year are 1,726 kg of coffee and 10.5% paid in cash - Photo: TAN LUC

The company's union representative said it was the employer's responsibility to pay insurance for its employees.

This cost is included in the production cost of the enterprise. This is a cost component in the production cost, and needs to be clearly explained to avoid misleading employees that the company collects insurance in coffee.

The company's union representative said that they had proposed to the Vietnam Coffee Corporation union to have a reward mechanism to show gratitude to workers because this year coffee prices have increased and the company has good profits.

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Source: https://tuoitre.vn/vu-dong-bao-hiem-xa-hoi-bang-ca-phe-giam-doc-hai-cong-ty-giai-thich-the-nao-20250217191939682.htm