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Medical help for Submit Workplace workers might be suspended until the struggling firm comes up with a plan to renew contributions. Contributions to the pension fund have additionally suffered because the Submit Workplace battles with an enormous loss.
In its company plan for 2021-2024, the Submit Workplace projected a lack of R2.5 billion for the 2020/21 monetary 12 months. Its monetary place was dire previous to Covid-19 which has been exacerbated by the pandemic, the report stated.
Collectors, medical help contributions, pension fund contributions and Sars obligations remained unpaid and “will proceed to not be paid until pressing monetary help is offered”.
Submit Workplace spokesperson Johan Kruger confirmed to GroundUp that the corporate had been unable to pay month-to-month contributions to the pension fund or to the medical help fund. He stated income in the course of the Covid-19 lockdown had dropped, and the Submit Workplace had prioritised workers’ salaries.
Thus far, the Submit Workplace nonetheless owes R543 million to its retirement fund, Kruger stated. There are at present over 15 500 folks employed by the Submit Workplace.
On October 9, 2020, MEDiPOS Medical Scheme, which offers medical help to Submit Workplace workers, warned that the scheme would cease offering cowl if arrear medical help contributions weren’t paid by December 31.
In December 2020, MEDiPOS principal officer Thabisiwe Mlotshwa advised members {that a} deal had been struck. The primary fee from the Submit Workplace had been obtained and though there was nonetheless a big quantity excellent, the scheme would not droop advantages. “[The Post Office] has introduced a proposal on clearing the excellent contributions owed and the scheme will proceed to have interaction with [the Post Office] to make sure the excellent quantities are introduced updated and that you just proceed to get pleasure from the advantages provided by the scheme and for which you’ve paid,” Mlotshwa stated.
Kruger stated the Submit Workplace had been in a position to pay a part of the medical help backlog after deciding to “pay the money portion of workers’ salaries in full and to carry again on pension and medical contributions as an interim measure”.
On this manner, Kruger stated workers would “stay members of the pension and medical help schemes and retain their advantages”.
However Mlotshwa advised GroundUp that, though the Submit Workplace had promised to pay month-to-month contributions once more from November, the scheme had solely obtained one fee for November 2020 “with partial funds for different months”.
She stated the Submit Workplace owed R582 million to the scheme as of September 7. Requested whether or not members would possibly lose advantages, if the negotiations didn’t succeed, she stated “the advantages could be suspended relying on the end result of the engagements”.
Communication Employees Union secretary-general Aubrey Tshabalala stated solely that the Submit Workplace had dedicated to pay the pension fund and medical help advantages. “Nevertheless we’re nonetheless ready for the affirmation of the pension fund funds for all.”
“The failure to pay these debit orders has dire penalties on the livelihood of employees,” he stated.
Kruger stated the Submit Workplace had put plans in place to enhance its income. He stated income was up on final 12 months, although nonetheless under goal, and spending was down.
Requested whether or not workers would nonetheless obtain their full pension payout on retirement, given the Submit Workplace’s monetary place, Kruger stated: “The workers’ pension capital stays invested within the pension fund. The fund reveals good development and workers will obtain the complete quantity obtainable to them on retirement.” The fund is an outlined profit fund, which suggests members get a assured quantity on retirement, versus an outlined contribution fund the place members pay an outlined quantity however payouts depend upon the expansion within the fund’s investments.
Kruger stated the Submit Workplace is in common discussions with the medical help scheme and pension fund with a view to “handle the state of affairs”.
© 2021 GroundUp.
This text was first revealed right here.
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