DEAR Editor,-
Here are the facts regarding the Ugu Sanlam Death Benefit Scheme and how it unfolded, ultimately resulting in two illegal strikes which caused collateral damage to our local economy and our long suffering residents. Ugu District Municipality – In 1997, Ugu workers asked for a non-statutory Sanlam Death and Disability Benefit Policy:-
• Payment of contributions: One percent from employees and one percent from Ugu;
• The scheme paid out on death, disability and had a funeral cover.
Ilembe District Municipality:-
• For a number of years Ilembe Municipality (just north of eThekwini in Durban) had a mandatory Sanlam Group Life Scheme policy for their workers;
• The scheme paid out upon retirement or death;
• In 2012, workers said they were unhappy with retirement payouts and that they wanted to terminate the policy;
• In October 2012 workers stopped paying contributions and parties began negotiations;
• After three years of negotiations a settlement was finally reached and the Ilembe workers were paid out on September 30, 2015.
YOU MIGHT ALSO BE INTERESTED IN: #WaterCrisis update: Some areas are still without water – MM explains [VIDEO]
Communication breakdown: It seems a rumour went out suggesting that the Ugu workers should demand a similar payout. Thus implying, without elaborating, that the policies were the same! Although both policies were underwritten by Sanlam, this was the only similarity. Representatives from Sanlam, Ugu and the SAMWU union were unable to explain the difference to the workers.
So in December 2016 they went on an illegal strike that was to cripple the South Coast. To prevent the strike from continuing, Ugu management capitulated to the illegitimate demands and paid employees R11m in a full and final settlement. The Ugu municipal manager advised council that this was the end of the debacle. I warned him at the time, that by giving in to the worker’s illegitimate demands, he was setting a precedent and that in future they would demand the rest, which is more than ten times the initial payout. As predicted, it unfortunately didn’t stop there and culminated in the catastrophic disaster we are now all facing.
Thank you to Neil Brayshaw for allowing me to use some of his information.
GEORGE HENDERSON
DA Ugu Councillor
DA RNM Ward 19 Councillor
