COSATU aggrieved by employers who toy with workers’ futures

The Congress of South African Trade Unions (COSATU) is pained by the massive number of employers who toy with workers’ financial futures by defaulting on paying pension fund contributions.

According to a list released by the Financial Sector Conduct Authority (FSCA) late last year, the number of employers defaulting on paying over workers pension fund contributions has virtually doubled to 7 700 from 4 000 since last publication the year before.

The fact is these employers are not only breaking the law, but they are toying with workers’ financial futures because for everyday that they withhold contributions, workers miss out on the compounding effect on their investments that would otherwise ensure they do not retire in poverty. Already, some workers who tried to withdraw money from their Two-Pot savings component were shocked to discover their contributions were in arrears even though they had been deducted from their salaries month after month.

Counted among the key defaulters are municipalities, security and cleaning companies. COSATU joins its militant Affiliate, South African Municipal Workers Unions (SAMWU), in commending the National Treasury for holding municipal managers who are defaulting on third-party payments to account. The move is most welcome, though long overdue. The question remains, however, who will hold the other defaulting employers to account?

The Federation is committed to ensuring these unscrupulous employers settle arrears and become compliant going forward. Consequently, COSATU is encouraging workers to scrutinise the list of employers released by the FSCA to ensure that their own pension fund contributions are up to date because the ramifications of falling into arrears are too devasting to contemplate.

We will be seeking an urgent meeting with the FSCA and National Treasury and the Department of Employment and Labour to craft and put in place a decisive plan to deal with such criminal employers and ensure workers’ monies are paid to their pension funds.  We cannot continue to tolerate such theft or normalise such behaviour.  If not addressed, it is a ticking time bomb that will soon erupt into violence.

The list of defaulters is available at this link: https://www.fsca.co.za/Regulatory%20Frameworks/Regulatory%20Frameworks%20Documents/FSCA%20Communication%2041%20of%202024%20(RF).zip

Issued by COSATU

Zanele Sabela (COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za