SA Stunned As KZN Filling Station Workers Accuse Employer of Swindling Retirement Fund
- Employees at an unknown filling station in Shelly Beach, KwaZulu-Natal, have spoken out against their employer
- The workers claim that their salary deductions, which ought to go towards their provident fund, is being misappropriated
- However, South Africans are not surprised by the development, noting it is a common practice among employers
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SHELLY BEACH - Disgruntled workers at a filling station in Shelly Beach on the south coast of KwaZulu- Natal are hurling accusations at their employer for allegedly not assigning monies taken from their salaries to their retirement fund annuities.
According to a SABC News report, the apparent swindling scheme began five years ago when the petrol station's ownership changed, attempting on numerous occasions since then to take the issue up with management, but to no avail.
Source: Getty Images
One worker, whose identity has been withheld to avoid harassment, said the new owner did not deny not assigning the employees' monies to their respective provident funds. The unknown businessman claimed the money was being used to pay off the historical debt that the business had accumulated.
"Only the previous employer saved our money. When we approached [the new owner], he claimed to be paying off the previous owner's debts. People are no longer interested in working there. But it's difficult for people to leave because of the knowledge they will not get their provident fund," the worker claimed.
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Billions in unclaimed provident fund
Meanwhile, the cumulative amount of unclaimed pension funds in the South African retirement sector is R44.9 billion, according to data from the Financial Sector Conduct Authority (FSCA) at the end of 2019.
Business Insider reported that the FSCA is awaiting the release of the 2020 figures, which will likely change from the current figure. The money is reportedly associated with 4.5 million beneficiaries who have not claimed their funds for various reasons.
More than R20 billion was paid out to almost 600 000 members in the last five years, as the FSCA worked to track and return the funds to the rightful beneficiaries, with each member receiving an average of around R37 000.
Not all surprised by plight
There was a mixture of shock, disbelief, and disgust at the claims of workers not having the provident fund contributions set aside. Offering suggestions, some locals said the workers should take the necessary steps to resolve their problems through a reliable union or the Department of Labour.
Briefly News takes a look at some of the reactions to the incredible development below.
@Jose Alves wrote:
"The Department of Labour is responsible for ensuring compliance with Labour legislation. Failing that join a reliable union."
@Kobate Sekele said:
"There are many companies that are deducting monies from their employees' salaries and not sending that monies to provident fund/ pension fund, UIF, PAYE etc."
@Eddie Kholofelo Malakane added:
"Most employers do that in South Africa. It's a very unfortunate situation that leaves employees at a disadvantage."
ANC finally pays staff three months' owed monies
Elsewhere, Briefly News recently reported that the African National Congress (ANC) has, at last, paid its staff their outstanding monthly salaries for two months after they went without a paycheck for over 90 days.
Although December payments were only expected to be processed on Wednesday last week, Pule Mabe, the party's spokesperson, said salaries and wages covering October and November had been paid.
Reports have also suggested the ruling party was clambering to come up with about R200 million to finance its debts and pay its employees, both of which have been well-documented, before the end of the year.
Source: Briefly News
