Numsa slams security companies for failing to pay their workers’ medical insurance benefits

NUMSA general secretary Irvin Jim .photograph : Phando Jikelo/African News Agency (ANA)

NUMSA general secretary Irvin Jim .photograph : Phando Jikelo/African News Agency (ANA)

Published Jan 19, 2023

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The National Union of Metalworkers of SA (Numsa) has slammed certain security companies for failing to pay their workers’ medical insurance benefits.

The trade union has accused the companies of having defrauded workers out of their benefits. According to Numsa, these claims are being investigated by the Council for Medical Schemes after a number of companies were found to be deducting funds for medical benefits from their salaries but failing to ensure that they were distributed to medical schemes.

In a statement on Wednesday, Numsa general secretary Irvin Jim said that the union condemned the behaviour of at least eight security companies who were involved in this practice.

“Numsa condemns security companies for defrauding workers out of their medical insurance benefits. The Council for Medical Schemes is currently investigating cases where security companies deduct monies from workers for the medical insurance but they have failed to pay it over to Affinity Health, which is the service provider.

“The medical aid benefit, together with other benefits and allowances are part of the collective agreement which these companies are subject to,” Jim said.

Jim said there was a collective agreement in the security sector which was signed in 2020. He saidthat this agreement was subsequently extended to parties and to all non-parties as well.

He added that the National Bargaining Council for the Private Security Sector (NBCPSS) approved health insurance benefits scheme for the sector following the signing of the collective bargaining agreement with employers and unions.

“Therefore, there is no excuse for why workers have not had their medical aid contributions paid by these companies.

“In South Africa there are about 700 000 security officers, but only 250 000 are registered for health insurance and provident fund. According to the agreement, workers pay R250 monthly insurance, half of which is deducted from salaries,” he said.

He said the bargaining council has failed to hold these companies accountable for their fraudulent activities which is why Numsa was calling out these companies.

The NBCPSS was yet to respond to media enquiries about Numsa’s allegation.

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