Today's Labour News

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cosatuBusinessLive reports that Cosatu says it will keep fighting any amendments to the rules governing provident funds until such time the government has a sustainable social security plan in place.  

The labour federation was reacting to the Treasury’s proposal that the implementation of the contentious changes to provident funds be postponed by another year until 2019.  The changes are contained in the new draft Taxation Laws Amendment Bill published for public comment.  The amendments, first proposed in 2015, would seek to transform provident funds into schemes akin to pension and retirement annuity funds whereby, upon retirement, members would be entitled to withdraw only a third of their benefits as a lump sum, and would be required to annuitise at least two-thirds.  Whether the government would meet the 2019 deadline depends on how fast a comprehensive social security plan was hammered out at Nedlac.  Labour federations have expressed displeasure at the pace of the talks at Nedlac, while Cosatu parliamentary co-ordinator Matthew Parks confirmed that talks at Nedlac were still at an early stage.  He also said that Cosatu would not agree to any changes blocking workers from accessing their provident funds during their time of need, emergency or unemployment.

  • Read this report by Theto Mahlakoana in full at BusinessLive

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