Publications
Partners
Johannesburg - A commitment for municipalities to provide an 18% employer contribution towards retirement plans is being reneged on by the SA Local Government Association (Salga), the Independent Municipal and Allied Trade Union (Imatu) said on Tuesday.
Municipalities promised to increase the contribution towards their employees' retirement plans to 18% under an agreement signed two months ago, Imatu said in a statement.
However, Salga was now going back on that agreement and claiming it had not intended raising its contribution.
"In a recent memorandum to municipalities, Salga appears to have advised municipalities to retain monthly employer contributions towards defined contribution pension funds at the current rates, if they are below 18%, and that it has allegedly never been their intention to elevate those lower rates to 18%," said Imatu deputy general secretary Craig Adams.
Salga could not be reached for comment.
Imatu gave Salga until Friday to respond to its allegations and to provide an assurance that the 18% employer contribution would be met.
Adams said if this did not happen, Imatu would treat Salga as if it were in breach and would invoke a dispute resolution mechanism to help reach the agreement.
Municipalities promised to increase the contribution towards their employees' retirement plans to 18% under an agreement signed two months ago, Imatu said in a statement.
However, Salga was now going back on that agreement and claiming it had not intended raising its contribution.
"In a recent memorandum to municipalities, Salga appears to have advised municipalities to retain monthly employer contributions towards defined contribution pension funds at the current rates, if they are below 18%, and that it has allegedly never been their intention to elevate those lower rates to 18%," said Imatu deputy general secretary Craig Adams.
Salga could not be reached for comment.
Imatu gave Salga until Friday to respond to its allegations and to provide an assurance that the 18% employer contribution would be met.
Adams said if this did not happen, Imatu would treat Salga as if it were in breach and would invoke a dispute resolution mechanism to help reach the agreement.
* Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
