Johannesburg - The National Treasury has excluded organised labour
from talks on proposed retirement reforms, Cosatu general secretary
Zwelinzima Vavi said on Thursday.
"This is an insult to workers, since decisions are
being taken about them on critical issues that affect them directly,
including how their pensions, which are deferred pay, are managed," Vavi
told reporters in Johannesburg.
He said Treasury had held extensive consultations with the financial services sector.
"However organised labour has been excluded from this
process, which has evolved since 2007, apart from minimal and
superficial contact."
The proposed "piecemeal reforms" of retirement funds could not take place without comprehensive social security reform, he said.
"For example, proposals for mandatory preservation of
retirement funds ... can't be implemented in a situation where there is
no income support for the majority of unemployed workers."
He added: "You can't ask workers not to take their
moneys today because of the preservation until they reach the retirement
age... you can't ask people to die now and wait in their coffins for
some funds to come from government at the retirement age."
He said Treasury had called Cosatu's retirement fund
committee to an urgent meeting to be told about developments in the
retirement reform process.
In response, Cosatu wanted a bilateral meeting with
Finance Minister Pravin Gordhan "to discuss not a piecemeal approach to
retirement fund reform, but a comprehensive social security net for
South Africa".
Reforms should be led by the department of social development, which would work with Treasury to submit joint ideas, Vavi said.
Cosatu also wanted to meet with the department of
labour about its efforts to establish a provident fund for domestic and
farm workers.
Vavi warned of another "e-toll coming" if labour was not properly involved in the reforms.
"Something that will affect us directly is being
discussed above our heads... you can't shave any person in his absence,"
he said.
Cosatu was also concerned about the Financial Services Laws General Amendment Bill which was before Parliament.
According to the labour union federation, certain
provisions in the bill could remove any recourse for negligence against
financial regulatory institutions such as the Financial Services Board
(FSB).
"The proposed amendments affect millions of pension
fund members nationally... as it might remove any recourse for past,
present or future wrong-doing which pension fund members may have
against financial regulatory institutions such as the FSB," Vavi said.
"Such serious pension fund regulatory reform cannot take place without a detailed engagement with organised labour."
Cosatu would seek legal advice on the bill and if steps were not taken to amend the bill, it could resort to a national strike.
Earlier this month, Treasury released a discussion document entitled "Strengthening Retirement Savings".
This came after Gordhan announced in his 2012 Budget
that a series of discussion papers on the promotion of retirement
savings would be released this year.
These would look at the best ways to ensure South
Africans have access to appropriate savings vehicles and make adequate
provision for retirement.