NUMSA names and shames security companies for defrauding workers out of their medical insurance benefits

18 January 2023

The National Union of Metalworkers of South Africa (NUMSA) condemns security companies for defrauding workers out of their medical insurance benefits. The Council for Medical Schemes is currently investigating cases where security companies deduct monies from workers for the medical insurance but they have failed to pay it over to Affinity Health, which is the service provider. The medical aid benefit, together with other benefits and allowances are part of the collective agreement which these companies are subject to.

The collective agreement in the security sector was signed in 2020 and it has been extended to parties and to all non-parties as well. The National Bargaining Council for the Private Security Sector (NBCPSS) approved health insurance benefits scheme for the sector following the signing of the collective bargaining agreement with employers and unions.Therefore, there is no excuse for why workers have not had their medical aid contributions paid by these companies. In South Africa there are approximately 700 thousand security officers, but only 250 000 are registered for health insurance and provident fund. According to the agreement, workers pay R250 monthly insurance, half of which is deducted from salaries.

We have to call out the bargaining council of the security sector the (NBCPSS) for failing to take action against these employers. They have the power to issue compliance notices to ensure that they comply and we have to wonder why they are simply folding their arms, and watching this happen. NUMSA should not have to issue statements to resolve this, the bargaining council should act. Otherwise, they must give us reasons for why they are failing to do their work. As NUMSA we will continue to pressurize them.

We have also heard complaints from members that Affinity Health is not assisting workers. If there is evidence that deductions are going off for Affinity health, then the health insurance company must service those members. They cannot refuse to assist them, just because they have not received the contributions. They must fight with the employer for them to be paid, but workers should not suffer.

More than 30 thousand security guards are affected by this unlawful practice where money has been deducted but not paid to the service provider which amounts to approximately R50 million. But this is not the only issue. Workers pension funds are also being deducted and not being paid over to the service provider. At the same time, some allowances, like the National Key Points Allowance and the Night Shift allowance have also not been paid. These are all benefits which were secured during wage talks. All employers who own security companies must pay, whether they are signatories to the agreement or not, these benefits apply to their employees as well.

We have decided to publish the names of the worst offenders, (in no particular order), who are deducting money from workers, but not paying it over to the service provider for medical insurance:

1.     Ithuba Security

2.     LAD Security

3.     Easy Security

4.     A Force Security

5.     Eagle Eye Security

6.     Mafoko Security

7.     Eldna Security

8.     Reshebile Security

We are publishing their names so that if media houses wish to engage them they can do so. The contact numbers are on their websites. We need to remind the bosses in the security sector that deducting money and then refusing to pay it over is fraud. We demand that those owing money pay up immediately. If they fail to act we will be forced to take further legal action against them.

Aluta continua!

The struggle continues!

Issued by Irvin Jim, NUMSA General Secretary, 18 January 2023