SAMWU APPLAUDS DECISIVE ACTION AGAINST MUNICIPAL MANAGERS WHO NEGLECT WORKERS’ PENSION CONTRIBUTIONS

9 January 2025

SAMWU APPLAUDS DECISIVE ACTION AGAINST MUNICIPAL MANAGERS WHO NEGLECT WORKERS’ PENSION CONTRIBUTIONS

The South African Municipal Workers’ Union (SAMWU) strongly welcomes the bold and decisive steps announced by the National Treasury to hold municipal managers accountable for their failure to comply with statutory obligations regarding workers’ deductions. This intervention, though long overdue, comes at a time when municipal employees across the country are grappling with the devastating reality of having no funds in their pension accounts, despite monthly salary deductions.

Even more alarming is the fact that these unpaid deductions are not limited to pension contributions—they also include medical aids and funeral policies. This has led to dire consequences for workers and their families. Many are unable to access medical facilities during times of illness, leaving them vulnerable and without essential healthcare. Heartbreakingly, others are unable to bury their loved ones with dignity. This is not just a financial crisis but a humanitarian disaster and a profound moral failing that demands urgent and uncompromising action.

For years, SAMWU has condemned the mismanagement of funds that rightfully belong to workers—funds that represent their security, dignity, and ability to care for their families in times of need. The National Treasury’s firm reminder of the Municipal Finance Management Act (MFMA) provisions underscores the fiduciary duty municipal managers have to ensure the prompt and full payment of statutory deductions. Their failure to uphold this responsibility is a violation of workers’ rights, a breach of trust, and a betrayal of the very people who keep our municipalities running.

While the Treasury’s directive for all outstanding contributions to be paid by the end of the 2024/25 financial year is noted, SAMWU strongly believes this timeline is insufficient. These deductions have already been taken from workers’ salaries, and there is no justification for further delays. Every day that passes without these funds being paid deepens the suffering of workers and their families.

The Union commends the Financial Services Conduct Authority (FSCA) for its decisive actions, including naming and shaming defaulting employers and pursuing legal measures to recover unpaid contributions. These actions send a powerful message: workers’ rights are non-negotiable, and violations will not go unpunished. However, more must be done to ensure swift compliance, as municipal workers cannot continue to bear the brunt of this negligence.

The human cost of this crisis is immense. Workers who have served their communities for decades now face the grim reality of being unable to access life-saving healthcare, bury their loved ones with dignity, or retire with financial security. These are not abstract failures but deeply personal tragedies endured by workers and their families due to the reckless negligence of municipal managers.

SAMWU is resolute in its commitment to ensuring that no municipal worker is denied their rightful benefits. We will continue to work alongside COSATU to demand justice and accountability. The union will intensify its efforts to open criminal charges against delinquent municipal managers, ensuring they face the full force of the law for their inhumane actions.

This issue transcends financial mismanagement—it is about protecting the dignity of workers, safeguarding their futures, and restoring the trust that has been so gravely undermined. SAMWU calls on all municipal employees to remain vigilant and report any irregularities in deductions and payments. Together, we will recover every cent owed, hold those responsible to account, and restore the integrity of municipal governance.

Let this serve as a clear and powerful warning: the era of negligence and impunity is over. SAMWU will not rest until every worker’s rights are upheld, every stolen benefit is recovered, and every municipal manager who failed in their duties is held to account. We remain committed to its mission to fight for the financial security, dignity, and well-being of all municipal employees.

Issued by SAMWU Secretariat

Dumisane Magagula,
General Secretary
(076 580 4029)

Or

Nkhetheni Muthavhi,
Deputy General Secretary
(082 526 5224)

or

Papikie Mohale,
National Media Officer
(076 795 8670).