Pension laws: Cosatu rejects claims proper processes were followed

The federation has rejected claims of a public consultation leading to the new pension fund laws.

FILE. Two weeks ago President Jacob Zuma signed a new law which limits the amount of money workers can take from their provident fund when they retire. Picture: Thomas Holder/EWN

JOHANNESBURG - The Congress of South African Trade Unions (Cosatu) says the Presidency is not correct to say that all the proper channels of consultation were followed when Parliament and cabinet passed new laws affecting provident fund payments.

Two weeks ago President Jacob Zuma signed a new law which limits the amount of money workers can take from their provident fund when they retire.

Yesterday, the Presidency said this was first publicly announced several years ago and there were at least 20 meetings with unions to discuss it.

It says 15 meetings took place within National Economic Development & Labour Council (Nedlac) from June 2012 and the bill was first presented in Parliament in 2013.

The trade union federation claims this amounts to the nationalisation of pensions.

Spokesperson Sizwe Pamla says government didn't actually listen to what Cosatu said in those meetings.

"For the act that they talked to us about things and then we rejected them, it does not amount to a proper consolation because there were no public hearings."