Today's Labour News

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GEPFTimesLive reports that the Independent Labour Caucus (ILC)‚ a collection of 12 unions‚ is objecting to the possible use of the state employees' pension fund to bail out South African Airways (SAA).  

SAA owes R6.8 billion to banks‚ payable at the end of September‚ with several banks refusing to extend repayment terms.  The accumulated funds of the Government Employees Pension Fund (GEPF) are invested through the Public Investment Corporation (PIC) and it is this that might be used to pay the airline's debt.  The ILC includes teachers union Naptosa and health services union Hospersa.  It has threatened court action should fund trustees approve the use of PIC funds for SAA debt and has pointed out that trustees of pension funds have to be independent and act in the best interests of their members.  The organisation has written in this regard to the GEPF’s board of trustees‚ the Minister of Finance Malusi Gigaba and Deputy Minister of Finance Sfiso Buthelezi‚ who chairs the PIC board.  The ILC has noted that SAA has a bad business record.

  • Read this report by Katharine Child in full at TimesLive

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