If employees at the Chris Hani Development Agency (CHDA) were to die or be involved in an accident today, none of them would receive medical and insurance coverage. This is because the funder of the agency, the Chris Hani District Municipality (CHDM), has failed to pay employees’ benefits since the current financial year started in July. Workers have now seen their critical insurance benefits suspended due to non-payment by the municipality.
This was confirmed in a suspension notice issued to workers by a retirement and insurance management company. The notice, dated November 4, revealed that the employees’ monthly contributions had not been paid as from July 31, leading to a suspension. The letter informed the workers that risk benefits, such as death and disability cover, had ceased from the suspension date.
It said if a member should die or become disabled, the fund would not be able to pay any risk benefits as the policy premiums were not paid and the policies had lapsed. “In these circumstances the employer may be in breach of promises made in the employment contract and, if so, any claim that arises during this period may result in a claim against the employer,” the letter said. It is about four years we have not been receiving salary increments while the parent municipality is giving our institution these increments, and the bargaining council has also issued a compliance order, but nothing has been implemented.
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The insurance company told the employees non-payment of contributions was a criminal offence. “Should all the outstanding contributions not be paid we will notify the Directorate of Public Prosecutions and the Registrar of Pension Funds. “We may also be compelled to bring charges against the employer and/or the directors in their personal capacities.”
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