Workers have not been paid social insurance debt for nearly 7 years

Da Nang TBO Vina Company Limited owes social insurance to 474 workers for nearly 7 years, while the Korean boss is on the run.

TBO Vina Company Limited (Lien Chieu District) was established in 2014 with 100% Korean investment capital, operating in the garment export industry. From November 2016 to July 2018, despite not paying social insurance, the company still deducted more than 10% of the monthly salary of nearly 474 workers.

In July 2018, Mr. Kim Sang Bong, the company director, announced that he would be on leave until the end of the month. After this time, he did not appear at work. Police said that he left the country but did not return.

Workers were worried, worked slowly, and even stopped working collectively when they learned that the boss had fled. At the end of that year, the company went bankrupt but had not paid nearly two months of wages and social insurance debts.

Authorities intervened and determined that the company owed workers more than 14 billion VND in wages and social insurance. 196 workers filed a petition for help, represented by the City Labor Federation, to sue the company in court.

In November 2019, Lien Chieu District People's Court ordered TBO Vina Company Limited to pay nearly two months' salary, plus outstanding allowances to workers, and transfer social insurance debt.

The entire assets of the company were seized and confiscated by the People's Procuracy of Lien Chieu District, then auctioned off. Upon learning of this news, in February 2022, many workers who had worked for the company went to the Civil Judgment Enforcement Office of Lien Chieu District to request their salaries and social insurance, but were not paid.

Ms. Huynh Thi Binh, who used to work for TBO Vina Company, said that 196 people who participated in the lawsuit were later paid their salaries. Nearly 300 people who "did not participate in the lawsuit were not paid" because the company's assets sold were not enough to pay the social insurance debt.

"Before going bankrupt in 2018, the company owed its employees social insurance for nearly two years. It has been seven years now, and we still have not received our social insurance benefits," said Ms. Binh, adding that many workers have not received maternity leave benefits.

Many workers who used to work at TBO Vina Company gathered in front of the City Administration Center to submit a petition to be paid social insurance debt, March 2023. Photo: Hong Chi

Attending the meeting with voters organized by the National Assembly Delegation, People's Council, Vietnam Fatherland Front Committee and Da Nang City Labor Federation on the afternoon of May 12, Ms. Binh proposed that the National Assembly and the Government consider allowing employees to enjoy regimes, policies and other benefits when business owners flee, businesses go bankrupt or dissolve.

Mr. Nguyen Thanh Nam, Deputy Director of the Department of Labor, War Invalids and Social Affairs of Da Nang, said that the assets after liquidation of TBO Vina Company were only about 1.5 billion VND, not enough to ensure the rights of workers. The Department has advised the City People's Committee to support nearly 500 million VND to pay the regimes for workers. After that, if the Department of Planning and Investment has a document confirming that the company currently has no legal representative, the City Social Insurance will have the basis to pay the one-time social insurance regime to the workers.

"Through this incident, in the end, the workers are still disadvantaged, both in terms of social insurance and salary," Mr. Nam said, hoping that city leaders will continue to pay attention to the nearly 500 workers who used to work at the company.

Nguyen Dong

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