Labour unions demand action against security companies for failing to pay employee benefits

KwaZulu-Natal government-contracted security companies have been accused of not contributing to their employees’ medical aid, provident funds, and Unemployment Insurance Fund (UIF) despite deducting from their salaries for that purpose. 

A group of labour unions, including the National Union of Metalworkers of South Africa (Numsa), marched to the provincial legislature on Tuesday demanding the provincial government to blacklist 41 companies alleged to be shortchanging their employees. 

The Private Security Industry Regulatory Authority (PSiRA) was also aware of such illegal practice. 

“We refer such complaints to the National Bargaining Council of the Private Security Sector (NBCPSS) for investigations and possibly recouping such monies.

“A lot of them (companies) claim to have registered with the provident fund and UIF, but do not pay it (employees’ deductions) over to such institutions, but such businesses are taken to task by NBCPSS and PSiRA,” said PSiRA spokesperson Bonang Kleinbooi. 

During the protest march, five unions that were affiliated with the Congress of South African Trade Unions (Cosatu) and the South African Federation of Trade Unions (Saftu) handed a memorandum to the provincial legislature for Premier Thami Ntuli’s attention. 

Ntuli’s spokesperson, Bongani Gina, commended the unions for providing the government with a list of transgressing companies that were contracted by various departments. 

He said the government would work with the NBCPSS in investigating the matter. 

“This matter requires a detailed assessment of each contract.

“The Office of the Premier assures the unions and the public that this matter will receive the attention it deserves, and we look forward to working towards a resolution that protects the rights and welfare of security guards,” said Gina.

The unions said the 41 companies were among more than 1,500 others in the province that were breaching the NBCPSS collective agreement. 

“Fraudulent deductions affect about 90,000 active security officers in KwaZulu-Natal, depriving them of their rightful benefits, such as health insurance and a provident fund, because of these dishonest and irregular and fraudulent deductions,” read the memorandum.

“They alleged that the security guards, who were mostly poorly paid, would lose R15.5 million in medical cover, R65.9 million of provident fund, and over R13 million of UIF per month to “these unscrupulous and corrupt security companies”. 

“This has a negative impact on security officers when they retire or have their contracts terminated,” said the unions. 

According to the NBCPSS’s Main Collective Agreement, which is governed by the Labour Relations Act (LRA), security companies should be registered with the Private Security Sector Fund (PSSPF) and NBCPSS Health Insurance and also pay basic salaries, including allowances, overtime, and levies.

“This grand theft, fraud, and exploitation of security officers is not only a general disregard of the law but a major risk to the reputation of the provincial government,” unions said. 

They called on Ntuli to ensure that the government departments were not participating in the exploitation of security officers. 

“As the custodian of the provincial purse, the premier should be the first to always remember his obligations in terms of the LRA and adopt measures to promote, protect, and fulfil workers’ rights as enshrined in the Main Collective Agreement.” 

South African Transport and Allied Workers Union (Satawu) secretary Nothemba Dlamini said some security guards would not receive their salaries for up to three months. 

South African National Security Employers Association (SANSEA) secretary Steve Condadie stated that some companies that are affiliated with his association were also victims of the government department’s delay in paying for services.

But he stressed that companies that were not transferring deductions to the relevant entities were acting illegally.

“One or two companies that are affiliated with us have said they were not involved in failing to transfer the deductions. 

“But they said the provincial government was delaying in paying for the services they rendered on time, with one of them saying it has not been paid since December last year,” said Condadie.

Gina said that under Ntuli’s administration, the failure to pay service providers on time will soon be a thing of the past.

bongani.hans@inl.co.za