The tax laws that government unilaterally signed recently including the New Tax Reform Amendment Act is only meant to undermine the independence of workers. AMCU remains steadfast in the fight for the rights of the members and against exploitation of workers.
AMCU cannot allow the government to impose laws that are not beneficial to the members and that are clearly meant to block the workers from making their own decisions on what to do with their hard earned Provident Fund.
Government signed the law at a time when the country is engulfed in a low wage regime with workers paid very low wages. The apartheid era still exists, workers still cannot afford to improve their lives during their working age and are still not able to even access bank financing to get loans to buy or build houses or invest in assets in preparation for retirement.
As such, provident fund lump sum pay outs provide a great leap and last gasp investment for most workers who buy these assets at their retirement in order to leave comfortable legacies for their families.
Furthermore, the current low wage regime is also compounding to these reforms, as there is no culture of saving in South Africa. In a country like ours these reform remains oblivious to the right of the worker because only two-thirds of the total working population earns less than the median earnings.