No SAA bailout with government pensions – Nupsaw

The National Union of Public Service and Allied Workers’ Union (Nupsaw) has come out guns blazing against government’s possible plan to use civil servants’ pension funds to bail out the cashstrapped South African Airways (SAA).

Nupsaw, which is affiliated to the new SA Federation of Trade Unions, was reacting to reports that government is considering using funds from the Government Employees’ Pension Fund (GEPF) to prop up the ailing airline.

The funds of the GEPF are entrusted to the Public Investment Corporation (PIC), which invests it on members’ behalves.

Nupsaw general secretary Success Mataitsane said any intervention by government would “only be a short-term solution” and would not take into account the possibly “devastating effects” on GEPF members and pensioners.

He added: “As a union representing its members in the public sector, we will hold the Government Employees’ Pension Fund accountable for their actions.”

He said the GEPF was the custodian of a significant portion of public servants’ wealth and as such it was responsible for ensuring the sustainability of the fund. Any irresponsible investment, such as that which was being considered by the National Treasury, would threaten that sustainability, he said.

“Should these accumulated funds and reserves be depleted, the country will be left with thousands of pensioners struggling with unexpected expenses,” Mataitsane added.

The union is thus demanding that the National Treasury refrain from using Public Investment Corporation funds to refinance South African Airways, which has been showing a year-on-year financial loss, the unionist said.

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