Cape Town - Retrenched Edcon staff who were expecting their provident fund claims payout on Monday after being retrenched by the retail giant in August, face a bleak festive season after they received last-minute letters telling them their payout has been postponed to the end of January 2021.
Some of the former employees, who have had no money since their retrenchment packages were paid out at the end of August, now claim to be facing eviction from their homes over rent arrears, among other financial difficulties.
Speaking in Cape Town yesterday, one of the former workers Corlene Smith said: “Those of us who left because of the retrenchments on August 24 were told we would receive our money today (yesterday). It was meant to be a 12-week period, but despite waiting patiently we still have nothing.
“We’ve been looking forward to this money for so long as we have rent to pay and families to look after. This is very unfair because it is Christmas and for people who are not working, that is heartbreaking because we don’t even know how we will buy uniforms for the children going to school next year.”
The November 28 email to workers, signed “Edcon Fund Administrators”, said: “We will be paying Edcon provident fund claims later than the initially communicated time lines. This unfortunate shift is due to specific changes in the retirement funds default legislation that took effect from April 2019.”
“This change in legislation required mandatory system upgrades and compliance.”
Meanwhile, the Argus made several efforts to reach the administrators of the Edcon provident fund on the numbers provided in an email to workers, but was unsuccessful. The former workers also said they had no luck getting through to the fund.
The workers, who assembled on the Grand Parade, later had a closed door meeting with EFF councillor Mbulelo Dwane and will have a further meeting today.
Meanwhile, EFF deputy provincial chairperson Nosipho Makamba-Botya said: “Edcon has no sense of urgency on this matter. “Here we are talking about people who have been out of jobs for months, who have families to feed and other financial obligations.
“These people have waited for 12 weeks and UIF money is not enough to cover their monthly expenses and considering the fact that UIF is only applicable for a certain period of time.
“The EFF appeals to Edcon to take this matter seriously and pay its employees with a matter of urgency.”
ANC provincial spokesperson on Finance Nomi Nkondlo said: “The current economic climate, with the added burden of Covid-19 is placing a huge burden on everyone.”
Nkondlo said: “The situation of Edcon has been in the public eye for some time now. It’s regrettable if matters of retrenchment packages that should have been resolved between the employer and employees are being delayed.”
“We further ask the department of labour to intervene and mediate in this situation to avoid further instability and uncertainty regarding these payouts,” said Nkondlo.
Cape Argus