The South African Municipal Workers' Union (Samwu) in the Free State has called for decisive action to be taken against municipal managers whose municipalities have defaulted on pension fund contributions.
The union said the recent report from the Financial Sector Conduct Authority (FSCA) revealed that 13 of the 27 municipalities in default nationwide were in the Free State.
“This is a clear and shameful indication of mismanagement, reflecting a complete disregard for the wellbeing of municipal workers,” the union said in a statement on Tuesday.
It said this reckless dereliction of duty not only undermined the financial security of municipal workers but also directly jeopardised their ability to access much-needed relief in times of crisis.
The union said thousands of its members had been left unable to withdraw from the “two-pot” system, denying them the temporary financial relief many urgently need.
Pension fund payment default: Samwu in Free State tells municipalities to act
'Shameful mismanagement' reflects disregard for workers' wellbeing, says union
The South African Municipal Workers' Union (Samwu) in the Free State has called for decisive action to be taken against municipal managers whose municipalities have defaulted on pension fund contributions.
The union said the recent report from the Financial Sector Conduct Authority (FSCA) revealed that 13 of the 27 municipalities in default nationwide were in the Free State.
“This is a clear and shameful indication of mismanagement, reflecting a complete disregard for the wellbeing of municipal workers,” the union said in a statement on Tuesday.
It said this reckless dereliction of duty not only undermined the financial security of municipal workers but also directly jeopardised their ability to access much-needed relief in times of crisis.
The union said thousands of its members had been left unable to withdraw from the “two-pot” system, denying them the temporary financial relief many urgently need.
“This neglect is an assault on their dignity and livelihood, pushing workers deeper into financial hardship.”
The union demanded that municipalities immediately rectify this situation by settling their outstanding contributions to restore the trust and financial security of their employees.
“Moreover, Samwu calls for urgent and decisive action from the FSCA and relevant authorities. Municipal managers, who are entrusted with overseeing the proper functioning of these institutions, must be held personally liable for this gross mismanagement.
“They cannot be allowed to shirk their responsibilities while workers suffer the consequences.”
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