With financial woes piling up on the SA Transport and Allied Workers’ Union (Satawu), the union reportedly wants to stave off the threat of liquidation of its provident fund.
In a letter to members of the fund, the administrators of the fund warned that it would take drastic steps after the union failed to pay members’ contributions from October 2021 to date.
The union also allegedly failed to honour its earlier commitment to pay arrears it incurred in 2015.
Fund administrator, Robson Savage, said it had been in discussions with the union over the last few days to “correct” the situation.
“At this point they (Satawu) have made a payment.
“I wouldn’t be able to divulge any further information,“ said the fund’s spokesperson Marilyn Kamp.
Fund members were alerted to the union’s “non-compliance” in a letter sent on October 3 which stated that Satawu was in contravention of an earlier agreement with the administrators and the Pension Funds Act.
The union reportedly failed to pay contributions and submit membership data in respect of which the payment was made.
The letter noted that the union did not make contributions in October 2015 and also failed to submit membership data.
“In accordance with an agreement not yet signed by yourself (union) but which you started to adhere to and then did not continue as per agreement (to pay R305 000 to offset arrears).
“Monthly member contributions deducted from their salaries (were) not paid over to the fund from October 2021 to date of this letter.”
The administrators said the Financial Sector Conduct Authority (FSCA) issued steps that the fund trustees must take should the union fail to comply by September 26.
These included notifying the FSCA and the Pension Fund Adjudicator of the outstanding contributions and membership data by October 8.
“The Pension Fund Adjudicator has the ability to liquidate assets of the employer and may instruct the trustees to do so if they are advised of this situation,” the administrators warned.
The union leaders also faced the possibility of an investigation by SAPS and the Directorate of Public Prosecutions and Commissioner of Pension Funds.
“The trustees will invoke general rule 14.3 which is to proceed with liquidation of the Satawu as a participating employer of the fund.
“A liquidator will be appointed who will take the necessary action against the participating employer to recover all outstanding contributions,” the administrator said.
According to an employee of the union, who spoke on the basis of anonymity for fear of reprisal, about 190 employees were affected.
“In 2015 the union failed to make the contributions.
“But we elected new leaders and we are now shocked that they are doing the same thing.
“We are worried that they have defaulted on the payment (and) this exposes us to risks, particularly in terms of employee resignation or death.
“We fear the worst. Our employer must come out clean on this,” said the employee.
A union insider said Satawu was also given an observer status at the recently held Cosatu national conference last months it was not in the “right standing” with the federation.
“The union has fallen behind with the payment of membership fees.
“Despite its plea for full participation, the request was turned down and so delegates could not vote,” said the insider.
Satawu secretary-general Jack Mazibuko did not respond to questions.