Joint COSATU Gauteng and SANLAM statement on the outcomes of a bilateral meeting

The leadership of COSATU Gauteng met with Sanlam through a teleconference after COSATU released a statement bemoaning Sanlam’s proposal to offer commission earning employees’ loans to cushion them during lockdown. The meeting focused on discussing the issues raised by COSATU, mindful of the impact of Covid-19 pandemic on the economy, employees and businesses. The Covid-19 pandemic is unprecedented in scale and Sanlam and workers, like the rest of society and business, are coming to terms with and learning how to navigate this crisis as we move through it. 

The engagement between the two parties was cordial and premised on the principles of open engagement, honesty, restoration of Sanlam’s reputation and the dignity of workers. Sanlam updated COSATU about the developments following concerns raised by Sanlam Developing Market Limited (SDM) intermediaries about a financial relief package that had been offered to the company’s commission earning intermediaries.

During this engagement Sanlam shared with COSATU that;

·         A revised  financial support package had been tabled to the SDM intermediaries for April, aimed at easing the financial hardship they may be experiencing at this time that is aimed at retaining them over the long-term (i.e. beyond the current Covid-19 crisis). 

·         The package aligns the long-term interests of clients, many of whom are union members, and intermediaries.

·         The High-level principles of the financial package for April are:

·      Commission earning intermediaries will be paid a financial assistance top-up that ensures that an intermediary earns at least the average of their net commission accrued in the past three months after taking account of any actual income that they have earned in April per their contracts;

·      The financial assistance will ensure that all intermediaries receive at least the National Minimum Wage.

·      The employment contract of intermediaries will be honoured in totality including the recovery  clause and retention and no one will be unfairly treated because of raising their dissatisfaction on the loan proposal by Sanlam;

·      The 12 months retention will not be used to stop intermediaries from leaving Sanlam instead an intermediary who is leaving Sanlam will be engaged on the implementation of the recovery clause outside Sanlam.

·         The financial assistance package will be reviewed for future months in consultation with Sanlam’s internal intermediary structures, taking into account the government restriction scenarios and an environment that is conducive for business activity. 

Sanlam and COSATU agreed that they would continue to engage on matters of common interest going forward, continuing to build their existing relationship; and whilst all parties are alive to the impact of Covid-19 to the economy, its effects to business, society and workers, everyone should properly navigate this impact without violating the rights of each other.

For Sanlam media queries please contact:

Jennifer Kingwill

Atmosphere – Account director

084 393 0916

For COSATU please contact:

Amos Monyela

Gauteng Chairperson

079 493 5002

Louisah Modikwe

Gauteng Provincial Secretary

074 226 6879