Johannesburg - The African National Congress (ANC) said on Thursday that it had met with its alliance partner, the Congress of South African Trade Unions (Cosatu), over the controversial Tax Administration Laws Amendment Act.
The new law affects how pensions will be paid out.
Cosatu has made public its displeasure with the Act, which it said was signed into law without any consultation taking place.
The labour body has threatened to go on a nationwide strike over the matter.
Workers are concerned that the new Act, if enforced, will prevent them from accessing all their pension money when they resign or retire from their jobs.
Earlier on Thursday Cosatu said: “The Congress of South African Trade Unions has noted the falsified statement from the Presidency claiming that there were proper and adequate consultations with unions and social partners during the passing of the Taxation Law Amendment Act”.
Cosatu spokesman, Sizwe Pamla, said: “We strongly dispute the fallacious claim that fifteen meetings took place with NEDLAC constituencies, from June 2012 to discuss this law. This law was unilaterally drafted by Treasury and rammed through the throats of social partners.
“There were also no public hearings done to allow workers and the public to have their say on the matter.”
Hours later the ANC said it had me Cosatu over the matter. “The National Officials of the African National Congress (ANC) have met with the National Office Bearers of the Congress of South African Trade Unions following Cosatu's opposition to the signing into law of the Tax Administration Laws Amendment Act,” said Zizi Kodwa, the ANC national spokesperson.
“The ANC has understood Cosatu’s opposition to the Act to derives mainly from lack of adequate consultation on the amendments contained therein.
“Consequently, the ANC has facilitated discussion between the Cosatu and the National Treasury to engage on the Act and the federation's concerns on it.
“The discussions are already ongoing and the ANC urges all stakeholders to support this process as a step to resolving the current impasse,” said Kodwa.
AFRICAN NATIONAL CONGRESS