Cosatu, govt at odds over pension reforms

A battered as the continuous struggle by workers, a stained glass window delivers a poignant message and reminder on the 10th foor of COSATU House in Braamfontien. Picture: Steve Lawrence 14/07/05

A battered as the continuous struggle by workers, a stained glass window delivers a poignant message and reminder on the 10th foor of COSATU House in Braamfontien. Picture: Steve Lawrence 14/07/05

Published Jan 28, 2016

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Johannesburg - Labour federation, Cosatu has once more disputed the Presidency and Treasury’s statements that there was thorough consultations prior to the singing of the Tax Laws Amendment Act.

The public spat between the labour giant and government has also prompted a response from the ruling African National Congress (ANC) which on Thursday released a statement calling on the parties to engage with one another on the matter.

Cosatu described the presidency’s claims that 15 meetings were held with parties at the National Economic Development and Labour Council (Nedlac) as “falsified”.

“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,” said Cosatu spokesman, Sizwe Pamla in a statement.

The presidency released a statement on Wednesday saying there had been thorough consultations and that the law would only be reviewed in two years.

The federation is opposed to some contents of the act related to retirement reforms which compel workers to invest two-thirds of their retirement savings and withdraw only a third as lump-sum.

Prior to the law, provident fund members could withdraw all their savings upon retirement.

Cosatu said such a law required the buy-in of all workers prior to its implementation and the government had failed to do so.

The organisation has also challenged both departments to provide proof of such consultations.

Labour Bureau

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