NEWS & ANALYSIS

Denel’s retirement fund unable to process benefits - UASA

Union says it seems deductions never made it to where they were supposed to go, which amounts to fraud

DENEL DROPS ANOTHER BOMBSHELL ON WORKERS

State-owned company Denel has dropped another bombshell regarding the benefit safety net of UASA members and other employees.

Denel’s retirement fund will not be able to process or effect payment of members’ benefits, including death in service and medical disability benefits, resignation benefits, investment return updates and any other benefits payable as provided by the fund’s rules as employees’  retirement fund contributions, both that of the members as well as that of the company. Medical aid contributions were also not paid.

According to the Pension Funds Act contributions must be paid before the 7th day of the month following the month for which it is due.

This follows last month’s shock announcement that Denel could only pay 85% of employees’ salaries after which a donor stepped in to make up the shortfall. 

Despite the fact that the amounts for the retirement fund and medical aid were deducted from the employees’ salaries, it seems the funds never made it to where they were supposed to go, which amounts to fraud.

UASA said from the outset that the donor’s contribution was nothing more than a temporary solution.

The current situation tells us how poor management and planning affect the lives of workers, not only employees, but also those family members covered under their benefits.

UASA is meeting with Denel management this afternoon to discuss the matter.

Statement issued by UASA, 10 July 2019