NUMSA is taking urgent steps to stop the coming into force of controversial provisions of the Taxation Laws Amendment Act on compulsory annuitisation for provident funds.
NUMSA has today (17 February 2016) communicated through its attorneys to the President of the RSA, the Minister of Finance and the Speaker of the National Assembly, demanding that immediate legal steps be taken to ensure that the disputed provisions will not be allowed to come into force.
The disputed provisions would have devastating consequences for workers and others and their right to use moneys held in provident funds, which belong to them.
NUMSA challenges the constitutional validity of those provisions and will, if need be, pursue that legal challenge in the courts. Government failed to comply with the requirements of Section 77 of the Constitution, and to engage in a meaningful public participation process. Further, the provisions violate the constitutional guarantee of property rights.
During the recent process of engagement, government representatives and other parties have indicated agreement that the provisions should not come into force on 1 March 2016 as enacted.
Some of those other parties are proposing a two-year postponement of the provisions.
NUMSA and others reject a postponement, believing that the provisions must be scrapped altogether.
Whichever route is followed, there currently appears to be broad consensus that the disputed provisions should not come into force.
The Amendment Act itself prescribes that the provisions will come into force on 1 March 2016. It is not possible for Parliament to amend this before that date.
NUMSA has been given legal advice that what is now necessary is for a court order to be obtained to suspend the legislation, pending either Parliament’s process to consider amending the legislation or a court challenge to the provisions’ constitutional validity.
Since government is the cause of this problem, NUMSA has called upon government to bring such a court application. If government fails to do so, NUMSA will itself launch an urgent application to court.
For further comment please phone Irvin Jim, General Secretary of the National Union of Metalworkers of South Africa, on 073 157 6384