‘Wave of strikes’ over pension law

File picture: Phil Noble, Reuters

File picture: Phil Noble, Reuters

Published Jan 20, 2016

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Cape Town - South Africans should brace themselves for a wave of strikes over the newly signed Tax Laws Amendment Act, which includes controversial reforms to retirement funds.

The industrial action will have adverse effects on the already ailing economy.

However, the unions felt the government had left it no choice.

The National Union of Metalworkers of SA (Numsa) announced yesterday that it would approach the National Economic Development and Labour Council (Nedlac) today to seek a section 77 certificate, which would grant it permission to embark on a two-day strike in future.

Meanwhile, Cosatu is considering whether to hold its central executive committee meeting – which is scheduled for February – sooner so that it can conclude its mass action plans.

Cosatu met its alliance partner, the ruling ANC, on Monday to discuss the retirement reforms that have enraged workers as they consider them an intrusion on their personal finances.

From March 1, provident fund members under the age of 55, whose retirement savings are more than R247 500, will be required to buy annuities using two-thirds of their total savings, with the power to withdraw only one-third.

Cosatu said it would go ahead with preparations for mass action, despite the ANC’s understanding of their discontent.

“The ANC said they need to engage Treasury and other government stakeholders on this matter, and they will come back to us before the State of the Nation address, but after the ANC lekgotla. That’s where we are...

“But going forward the position of the federation is that since the meeting of the ANC did not bring about any solid proposals that helps in resolving this issue, nothing has changed,” said Cosatu spokesperson Sizwe Pamla.

Numsa wanted President Jacob Zuma to repeal the law in the same manner he managed to remove Des van Rooyen as finance minister following public outrage.

“This is an attack on workers’ basic rights, in particular on young workers, who will be most affected as they have their whole working life ahead of them, so all their savings will be affected,” said Numsa general secretary Irvin Jim.

He said that by promulgating the laws, the government was reinstating the original apartheid pension system that Cosatu had fought hard to convert into provident funds.

“During our militant struggles of the 1980s, the workers’ movement fought for the right to choose whether to take a lump sum when they retired or to receive a pension,” explained Jim.

The Federation of Unions of South Africa (Fedusa) said it would not take part in the looming strikes as it was satisfied with the manner in which consultations were conducted at Nedlac and the act itself.

“We are not going to run down the streets for nothing. They (other unions) are confused about this act,” said Fedusa general secretary Dennis George.

Cosatu had complained that Zuma signed the law before it was finalised at Nedlac, making the government’s decision unilateral.

CAPE TIMES

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