South African labour unions have sounded the alarm over an R8.3bn unpaid pension crisis affecting 590,000 workers.
Labour unions are sounding the alarm over the growing number of companies that are failing to pay over pension contributions to pension funds, leaving workers destitute at the end of their working lives.
The Public Servants Association (PSA) has revealed that more than R8 billion in pension contributions have not been paid over to pension funds by employers, despite those being deducted from employees.
Labour unions stated that workers have very little recourse when they discover that the company has not been paying over their pension.
Economists say this is a major concern and could be damaging to workers' lives after retirement, pointing out that many workers cannot retire comfortably as it is, even if they receive their full pension.
