Question:
Hi there, please help me with this question. My mum has been working for a company for 35 years. They have an organisational norm that the retirement age is 60. She does not have a written contract with them accepting this norm, or any other agreement that she will retire at 60. The company has employees on its own provident fund which they allow to work until 65. However, my mother is on a union provident fund, therefore the company says she will have to retire at 60. So only those who are with the company fund can choose whether they want to retire at 60 or 65, other employees whose fund is with SACAWU don't have that choice. What can she do? She wants to work until 65. The company is discriminating against workers because of a decision they made decades ago to put their provident fund in the SACAWU union. Regards Sarika
Answer:
Sarika,
This is a matter or labour law/policy rather than retirement fund law, and we are therefore not in a position to give you advice on what your mother should do.
But it would appear that the terms and conditions of your mother's employment are regulated by agreements reached between the employer and the union. If this stipulated a retirement age of 60, and this is so recorded in the union's provident fund rules (general or employer-specific), then the employer is bound to follow this. Non-union members would obviously not be bound by this agreement, and would follow the rules of the company provident fund.
We don't believe this is a matter of discrimination - most employers would choose not to deal with unions and union provident funds. Employees choose to be union members, because they believe it offers some protection against employer exploitation. They also believe that the union provident fund will better serve their interests. But they are then bound by those provident fund rules, which are largely set by the union, not by the employer. If union members now want the option to work to age 65, then they should ask the union to engage with the employer, and to change the normal retirement age in the union provident fund.
