Hanoi: Workers directly involved in production petition to reduce retirement age because of excessive overtime and declining health when they reach the age of 40-45, decades away from retirement age.
Hanoi Labor Union proposed to reduce the retirement age for some specific groups of workers, direct production workers, and increase benefits to limit the situation of withdrawing social insurance (SI) at a one-time payment, at a dialogue with city leaders on May 18.
Ms. Ngo Thi Hong Ha, Chairwoman of the Cheewah Toy Manufacturing Company's Union in Phu Nghia Industrial Park (Chuong My), said she wanted to reduce the retirement age because the working age of direct production workers is too short, only about 40-45, while the general retirement age is 60-62. "Most production workers have to work overtime, stand on machines for long periods of time, and lose strength, so it is difficult to maintain health until retirement age," she said, adding that workers can only work for 15-20 years at most.
Ms. Ngo Thi Hong Ha, Chairwoman of the Cheewah Toy Manufacturing Company Union. Photo: Vo Hai
While the current law stipulates that 20 years of compulsory social insurance contributions will receive a pension of 45% and 35 years of contributions will receive a maximum of 75%. With a monthly social insurance salary of about 5 million VND, workers receive a pension of only 3 million VND. Considering this level is very difficult to manage, Ms. Ha suggested that research agencies recalculate the pension rate for workers in the production sector.
Supporting the above proposal, Mr. Nguyen Dan Dich, a worker at Noi Bai Industrial Park (Soc Son) said "if I retire early, my pension will be low, but I am willing to wait". After 15 years working in a factory producing motorbike parts, Mr. Dich has not been bored with his job because it provides a stable income. However, in recent years, he has often had stiff neck and shoulder pain, back pain and signs of cervical spondylosis, feeling weak and out of breath at the age of 40.
"Some groups should be able to retire early at age 55, especially heavy industries like mechanics," said Mr. Dich, calculating that if the proposal becomes a reality, he will try to work for a few years, increase the time to pay social insurance, then change to a job that suits his health to wait for his pension.
Mr. Ta Van Duong, Head of the Department of Legal Policy and Labor Relations, Hanoi Labor Federation, said that it is necessary to classify labor groups, set the retirement age at 55, for example, and let them have the right to choose to retire early or continue working. Civil servants, officials, intellectuals, and experts can work until 60-62 years old or older as they wish. But direct production workers almost cannot live to 60 years old, even kindergarten teachers.
Citing the reality that many textile, footwear, mechanical, and assembly enterprises are trying to find ways to terminate contracts, and workers who have reached a certain age and cannot work anymore, Mr. Duong said: "The regulations on unilateral contract termination procedures may seem difficult at first glance, but in reality they are very easy. Enterprises only need to use the reason of rearranging production to be able to terminate thousands of labor contracts without violating the law."
The retirement age will increase by three months each year for male workers and four months for female workers, effective from 2021, according to the provisions of the 2019 Labor Code and Decree 135. Graphics: Viet Chung
The group of 40-45 year old workers who are eliminated from the chain find it difficult to find a job. When they return to their hometowns, they have no fields left, so they have to switch to freelance work, street vendors, and have unstable incomes. Because they have to wait for retirement for decades, they choose to withdraw their social insurance at once. "It's not that workers don't know the pros and cons of withdrawing at once, but they are insecure when policies change constantly. If the retirement age is reduced, they will consider waiting," said Mr. Duong.
Responding to the petitions, Mr. Phan Van Men, Director of Hanoi Social Insurance, said that the retirement age will increase according to the new roadmap implemented from the beginning of 2021, and the proposal to reduce it will be very difficult because the law needs to be amended. Not to mention that reducing the retirement age while life expectancy increases will have a certain impact on social security, while the world trend is to increase the retirement age.
"However, the workers' recommendations are all valid. We have noted them to advise the city to report to the competent authorities and move towards amending the Social Insurance Law," he said.
The 2019 Labor Code stipulates that the retirement age will increase gradually from 2021. Each year, the retirement age for workers working in normal conditions will increase by three months for men until they reach 62 years old in 2028; and four months for women until they reach 60 years old in 2035. Previously, the retirement age for men was 60 and 55 for women.
Dialogues between workers and provincial leaders and National Assembly deputies took place in many localities from April 20 to May 20, revolving around recommendations on retirement policies, one-time withdrawal of social insurance, black credit, social housing... The Bac Giang grassroots trade union proposed reducing the number of years of social insurance contributions from 20 to 10 years so that workers can receive their pensions early when many workers tend to pay for more than 10 years and choose to withdraw at once. Workers in Ho Chi Minh City want fairness in the calculation of pensions between the private and public sectors.
Hong Chieu - Vo Hai
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