Last updated on 18/11/2023
Private security companies contracted to look after national key points implicated in non-compliance with regulations governing workers’ healthcare benefits write Lucas Ledwaba and Katlego Sekwati
AN alliance of labour unions organising in the private security sector has asked the Eastern Cape provincial government to terminate the contracts of hundreds of security companies doing business with the state.
They accuse the companies of failing to contribute towards workers’ healthcare benefits in line with a March 2021 Main Collective Agreement signed between security companies, unions and the National Bargaining Council for the Private Security Sector (NBCPSS).
The unions said in a memorandum to premier Oscar Mabuyane in Bisho this week that there are 722 non compliant security companies operating “with gay abandon” in the province.
The union alliance includes the Abanqobi Workers Union (AWU), Kungwini Amalgamated Workers Union (KAWU), National Union of Metalworkers of South Africa (NUMSA), the South African Transport and Allied Workers Union (SATAWU) and the South African National Security and Allied Workers Forum (SANSAWF).
The unions allege that “many of these non-compliant companies are also charged with protecting government departments, including national key points.”
The matter dates back to March 2021 when the NBCPSS approved a health insurance benefits scheme for the sector following the signing of a collective bargaining agreement with employers and unions.
Affinity Health was later appointed as administrator for the health insurance benefits scheme.
The benefits include chronic disease management and medication, doctor consultations, hospital and casualty benefits, including an HIV and TB management programme.
However according to unions and workers thousands of security companies have failed to adhere to the agreement whilst deducting money from employees’ salaries but failing to provide the health care benefits, or using other service providers either than the one appointed by the NBCPSS.
This has reportedly impacted on the livelihoods of thousands of security guards. The matter was reported to the Financial Sector Conduct Authority and the Council for Medical Schemes for investigation.
In February the unions launched a ‘pay-back-the-money’ campaign’ to demand that action be taken against non-compliant companies. They called for government to cancel contracts of such companies and for directors to face criminal charges.
So far the unions have taken their campaign to Gauteng, Mpumalanga, Free State and Northern Cape where they marched on non-compliant companies and provincial legislatures. This week scores of union members marched on the Eastern Cape Provincial Legislature in Bisho where premier Oscar Mabuyane accepted their memorandum of grievances.
“We are aggrieved that the Eastern Cape provincial treasury does not only allow non-compliant security companies to operate freely in the province, but also continue to outsource from the companies involved in this alarming exploitation of poor security officers by not complying with the Main Collective Agreement, and many laws of the Republic,” the unions said in the memorandum.
“In terms of the Main Collective Agreement, all security companies MUST contribute R172 per month for each security officer they employ with the security officer contributing the balance. Alas, the majority of security companies employed by the state do not pay over these premiums to the designated service provider.”
“This fraud exposes the security officers to catastrophic spending. Poorly paid workers are always at the risk of sinking even further into poverty because of the adverse effects of illness and injuries on duty on their earnings and family savings.”
In the memo the unions also claimed that many security companies doing business with the Eastern Cape government “had not registered their security officers with the PSSPF even though they are deducting money for “provident fund” every month. This adversely affects security officers when they retire, or their contracts terminated which is a common occurrence for security officers. Not paying over money to the designated provident fund is fraud and in violation of the Main Collective Agreement.”
“We call on the Eastern Cape premier to show leadership and terminate all contracts of non-compliant companies. Terminating all these companies will demonstrate that the premier refuses to be an enabler of fraud, corruption and the general exploitation of security officers in the Eastern Cape.”
Mabuyane said government will investigate the allegations by the unions and respond within the stipulated seven days.
In response to whether he knew that government awarded tenders to non-compliant companies, he told Mukurukuru Media that “there is no way that a company that will be hired [by government] is not compliant.”
He said if companies were non-compliant then this means this would have happened during the process following the awarding of tenders.
“So the issue here is about monitoring because this is a private sector and you leave it in that responsibility, that only workers can deal with that level that deals with workers that are employed by government.
“But we have responsibility, if those people are given the work they must make sure the laws of our country are not undermined,” he said.
Asked whether the government will terminate the tenders as demanded by unions, Mabuyane said he will demand accountability from heads of departments and HODs to ensure that the grievances are dealth with. He said however government will deal with the issues within the confines of the law.
Satawu deputy general secretary Anele Kiet asked the government to probe a list of companies handed over by unions “because majority of them are working or have contracts with the government department.”
“When we approach these companies, they put the blame on the door of the department that you are underpaying them as government and therefore they are unable to comply with the main agreement of the bargaining council,” Kiet said.
“We have worked hard very hard as union in the bargaining council to make it a point that it is compulsory for these workers to be paid bonuses and we worked very hard as unions to make it a point that as little as they get, they must have a medical insurance,” he said.
Security guard Noxolo Sinama said she hoped Mabuyane will help resolve the issue.
“If the premier can solve our problems, we will be fine,” said a tearful Sinama, who has been a security guard for more than 11 years.
In its 2021/22 annual report, the Private Security Industry Regulatory Authority (PSIRA) said there were 586,042 registered active security officers as at the end of March last year and 11,540 active registered private security businesses.
“I am earning peanuts but they are deducting R280 for the provident fund and R150 for medical insurance that is covering only me. Why only me? What will happen to my children when they are sick? I will have to take the peanuts I earn to take them to the hospital,” she further said. – news@mukurukuru.co.za
Nami zange ndayiva I medical aid that is only covering the main member kuphela what about your wife and children if they are sick? You have to take the last cent out of your own pocket to the special doctor! Bt the company is deducting R150 every month that is covering only yourself, what about your family????