Reflecting to VietNamNet newspaper, many workers of Ia Sao 1 Coffee Company and 706 Coffee Company (members of Vietnam Coffee Corporation - Vinacafe) expressed their frustration about having to pay social insurance (SI) with agricultural products, when coffee prices increased, they lost a large amount of money.

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Workers said that in 2024, the company will collect money and coffee equivalent to 30 - 38 million VND/person to pay social insurance. Photo: TL

From 2022 onwards, each worker The company assigned 1 hectare of coffee to take care of on a profit-and-loss basis. After harvesting, the workers had to pay the company 4 tons of fresh coffee, and they would receive the rest. All costs for fertilizer, materials, and social insurance were covered by the workers themselves.

From 2023 to now, these companies have made subcontracting contracts. Ia Sao 1 Coffee Company requires workers to pay social insurance equal to 1.7 tons of coffee each year, while 706 Coffee Company requires 1.5 tons. Notably, new employees (level 1) or long-time workers (level 6) must pay the same amount of social insurance, causing frustration.

According to the workers, at the current market price, 1.7 tons of coffee will be sold for nearly 48 million VND. Meanwhile, the highest social insurance contribution for level 6 workers is 30 million VND/year (a difference of nearly 18 million VND), while level 1 workers only pay 14 million VND (a difference of nearly 34 million VND).

Not only that, each year the company also collects an additional 3 - 10 million VND/person in cash depending on the salary level for social insurance contributions.

According to Ms. N., although she did not agree with the above plan, she still had to sign it, because if she did not sign, her contract would be terminated, she would no longer be a worker of the company, she would be forced to return the coffee batch, and her social insurance would not be paid. Meanwhile, she has been attached to this job for decades.

“We want to pay social insurance in cash, each level pays according to that level, not unreasonably divided equally. When the coffee price increases, we benefit, when it decreases, we suffer. That way it is objective and fair,” Ms. N. expressed.

Workers also said that, with about 1,000 workers, in 2023 and 2024, the two companies collected tens of billions of dong in excess of the workers' social insurance contributions, but it was unclear what purpose they used it for.

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Ia Sao 1 Coffee Company Headquarters. Photo: Tran Hoan

What did the Director of Ia Sao 1 Coffee Company say?

Speaking with VietNamNet reporter, Mr. Trinh Xuan Bay, Director of Ia Sao 1 Coffee Company confirmed that the company collects 1.7 tons of coffee/year from people to pay social insurance for them from 2023. This is done by people signing a contract.

According to Mr. Bay, the company used to collect social insurance in cash, but due to low coffee prices, workers did not have money to pay, so they had to pay for a long time, and in some cases, they owed too much and quit their jobs. After consulting and being directed by the Vietnam Coffee Corporation to collect social insurance in coffee, the company developed a stable contract plan for 5 years, for the 2023-2027 cycle.

Explaining the different social insurance contributions for workers but the company pays the same amount to each person, collecting 1.7 tons of coffee per year, Mr. Bay said that the company cannot review and adjust for each person because the salary increase changes every year.

Therefore, the company agreed to stabilize the contract according to the average social insurance collection plan for levels 1-6, each person must pay about 17 million VND, calculated according to the coffee price in 2023 equivalent to 1.7 tons.

Regarding the average calculation basis, the director said that at that time, people receiving level 6 had to pay about 20 million VND/year, but the company only calculated 17 million VND based on their contributions. People receiving level 1 also paid the same and later they were also considered the same.

Regarding the company collecting an additional 3 - 10 million VND/person, Mr. Bay explained that this amount is 10.5% of the social insurance that employees must pay for themselves.

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706 Coffee Company currently has nearly 700 workers. Photo: Tran Hoan

According to the people, the coffee price that the company signed with the people was 10,000 VND/kg (17 million VND equivalent to 1.7 tons), but in 2023 the company sold it for 13,000 VND/kg (equivalent to 22.1 million VND); in 2024 it sold it for 26,000 VND/kg (equivalent to 44.2 million VND). Therefore, this amount has exceeded the 2024 social insurance level that a worker must pay, so why is there an additional 10.5% collected?

Regarding the above question, Mr. Bay said that this content was agreed upon in the contract.

Responding to the question of what the difference collected from over 300 people was used for, Mr. Bay informed that when the coffee price was 10,000 VND/kg, it was even, but when it went up to 15,000 - 20,000 VND/kg, the company would increase the profit and put it into revenue and profit. When the coffee price dropped to 5,000 VND/kg, the company would deduct the profit to pay the people.

Once again, Mr. Bay affirmed that the above social insurance collection plan is implemented according to the direction of Vietnam Coffee Corporation. When there is feedback, the unit will make a written report to ask for opinions; with inappropriate content, there will be a proposal for adjustment.