The Business Blues: Workers Feel the Pinch

Wage Theft and Labor Rights Violations: A Growing Concern

In recent times, labor relations have taken a complicated turn at Hoàng Sinh Company (Phú Tân Industrial Park – Bình Dương), with the company owing back wages to approximately 900 workers for four consecutive months (from April to July 2024). The company also owes a staggering 26 billion VND in social insurance contributions.

Delayed wages have left workers struggling to make ends meet, forcing them to borrow money to get by. Many can no longer afford rent, and some, like long-time employee Mr. Võ Hoàng Út Oanh, have been evicted by their landlords due to accumulated debt. “I had to borrow 1 million VND and pay 100,000 VND in interest each month just to survive,” he shared.

Numerous other employees of Hoàng Sinh Company find themselves in similar dire straits.

Ms. Nguyễn Thị Lệ, a migrant worker from Phú Yên, encountered a shocking revelation when she sought medical treatment and was denied insurance coverage. The reason? Her employer, a garment factory in Củ Chi, had failed to make social insurance contributions for almost two years. As a result, she had to bear the entire cost of her treatment, amounting to over 10 million VND. “Every month, the company deducts more than 500,000 VND from my salary for mandatory social insurance. Their failure to make these payments has severely impacted my rights and well-being,” she lamented.

In a separate incident, over a hundred workers at Nobland Vietnam Co., Ltd. (in Ho Chi Minh City’s District 12) protested against wage deductions imposed due to the loss of 3,000 t-shirts. The deductions ranged from 64,000 VND to 805,000 VND, depending on the worker’s position. Despite the uncertainty surrounding the incident, the company decided to penalize all workers in the finishing stage. The company’s trade union intervened and requested the reversal of this decision to uphold the workers’ dignity.

Upholding Workers’ Rights: A Collective Effort

Upon learning of the situation at Hoàng Sinh Company, Ms. Nguyễn Kim Loan, Chairman of the Bình Dương Province Labor Federation, sprang into action. The federation provided essential goods to workers staying in the company’s premises and reached out to landlords to request rent waivers or reductions for affected employees. They also distributed 1 million VND and essential goods to each worker. “For three months, we have been negotiating with the company to settle the wage payments. However, the company has cited financial difficulties as the reason for the delay,” Ms. Loan explained.

Mr. Trương Văn Phong, Vice Chairman of the Management Board of Bình Dương Province Industrial Parks, collaborated with the Bình Dương Tax Department to facilitate procedures for Hoàng Sinh Company to utilize tax refunds to pay their employees’ wages.

Ms. Nguyễn Thị Hồng Văn, Head of the Business and Taxpayer Support Division at the Bình Dương Tax Department, confirmed that after receiving and evaluating the company’s request for a tax refund, the department approved a refund of nearly 23 billion VND on August 2, 2024. Subsequently, Hoàng Sinh Company settled the wage arrears with their workers. “From the beginning of the year until now, the Bình Dương Tax Department has provided tax refunds to businesses in the province, totaling over 11,300 billion VND for nearly 1,800 cases,” Ms. Văn added.

During a dialogue with city workers on May 11, Mr. Phan Văn Mãi, Chairman of the Ho Chi Minh City People’s Committee, emphasized the need to ensure workers’ rights in the Nobland Vietnam incident. According to the Ho Chi Minh City Department of Labor, Invalids, and Social Affairs, the company had unlawfully deducted over 29 million VND from the wages of 111 workers in April. The company has since returned the deducted amount. Additionally, Nobland Vietnam Co., Ltd. was fined 70 million VND by the Ho Chi Minh City People’s Committee for their transgression.

Calling for Stronger Deterrents

Mr. Phạm Chí Tâm, Vice Chairman of the Ho Chi Minh City Labor Federation, revealed that as of the end of June 2024, over 17,300 businesses in the city owed social insurance contributions for three months or more, totaling more than 3,000 billion VND. This situation has adversely affected the rights of approximately 93,000 workers regarding maternity, sickness, occupational accidents, and death benefits. While the Ho Chi Minh City Labor Federation has actively supported workers in taking legal action against such companies, there has not been a single case of criminal prosecution related to these violations.

The Ho Chi Minh City Labor Federation advocates for stricter penalties and even criminal liability to deter and reduce violations of social insurance laws, late payments, and evasion of social insurance contributions for workers.

According to the Ho Chi Minh City Police, from 2020 until now, they have received 66 cases and reports from the social insurance agency, but no criminal cases have been initiated, nor have any individuals or entities been prosecuted in connection with the use of labor with violations of social insurance laws.