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South Africa

Numsa accuses companies of defrauding security guards

───   17:26 Wed, 18 Jan 2023

Numsa accuses companies of defrauding security guards | News Article
The general secretary of Numsa, Irvin Jim. PHOTO: Twitter

The National Union of Metalworkers of South Africa (Numsa) says in a media statement that was published on their Facebook page, that it condemns security companies for defrauding workers of their medical insurance benefits.

"The Council for Medical Schemes is currently investigating cases where security companies deduct monies from workers for medical insurance but fail to pay it over to Affinity Health, which is the service provider. The medical aid benefit, together with other benefits and allowances, is part of the collective agreement to which these companies are subject," says Irvin Jim, general secretary of Numsa.

"In 2020, the National Bargaining Council for the Private Security Sector (NBCPSS) approved a health insurance benefits scheme for the sector following an agreement with employers and unions.

"Therefore, there is no excuse for why workers have not had their medical aid contributions paid by these companies. In South Africa, there are approximately 700 000 security officers, but only 250 000 are registered for health insurance and provident funds. 

'More than 30 000 security guards affected'

"More than 30 000 security guards are affected by this unlawful practice, where money has been deducted but not paid to the service provider, which amounts to approximately R50 million. But this is not the only issue. Workers' pension funds are also being deducted but not paid over to the service provider. At the same time, some allowances, like the National Key Points allowance and the Night Shift allowance, have also not been paid.

"These are all benefits that were secured during wage talks. All employers who own security companies must pay, whether they are signatories to the agreement or not; these benefits apply to their employees as well.

"We need to remind the bosses in the security sector that deducting money and then refusing to pay it over is fraud."

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