Union targets Amplats’ funds
• Amcu heads for court over R7bn pension transfer
A R7bn pension fund is at the heart of a legal challenge by the Association of Mineworkers and Construction Union against Anglo American Platinum.
A R7bn pension fund is at the heart of a legal challenge by the Association of Mineworkers and Construction Union (Amcu) against the world’s largest platinum miner, Anglo American Platinum (Amplats).
Not for the first time, Amcu — a relatively new union and one which has grown quickly on platinum and gold mines — has demanded the transfer of pension and provident funds established by companies in these sectors into the Igula Umbrella Provident Fund, which it set up.
The gold sector rejected Amcu’s demands for the collective Mineworkers Provident Fund to be paid into Igula after the issue was raised during wage talks in 2015, and the matter went quiet.
“Gold companies asked Igula to come and give us a presentation with a view to interrogate their viability and model. It did not materialise,” said a gold company when asked on Friday why Igula was not an option.
Amcu is now taking the 80%-held Anglo American subsidiary and one of SA’s largest mining companies to the Labour Court to stop it from transferring R7bn in funds from the Amplats Group Provident Fund to the Old Mutual Umbrella Fund.
Amcu says a wage agreement signed with Amplats in 2016 contains a clause stipulating that there would be talks between the two sides about the transfer of pension and provident funds to Igula.
Amcu contended in court papers that Amplats disbanded a task team set up to talk about the transfer of funds to Igula in December 2017 and that the company had not mentioned it was intending to transfer the money to another fund.
The Labour Court heard the application at the end of May but ruled it was not urgent and postponed the hearing to June 27.
Amplats conducted a review of a number of fund options, including Igula, and settled on the Old Mutual fund, it said on Friday.
“Anglo American Platinum provided feedback to Amcu that the Igula Fund was unsuccessful as an umbrella fund provider,” Amplats said. It would begin the transition process at the start of June subject to approval from the Financial Sector Conduct Authority.
The Igula fund is said to be administered by Alexander Forbes, with EOH as consultant. Amcu said it set up the fund so its members could “have more control and influence over their financial interests” and that Igula, governed by the rules set down by the Financial Sector Conduct Authority, would invest the funds in a manner consistent with the demand of “transforming the economy”.
Industry participants said it did not have substantial membership yet and this could explain why Amcu was pushing the matter so hard.