Formex workers strike over non-payment

Workers at Formex Industries in Nelson Mandela Bay downed tools yesterday, alleging that they had not received their weekly wages despite the company having received funds on behalf of employees.

One person, who did not want to be named, said they had checked the UIF system and found that “about R400,000” was paid to the company in April through the Covid-19 elief fund.

“First they told us that their application for Ters [Temporary Employer Relief Scheme] was declined, but now when we tell them we have proof that the company was paid we are told that those funds were [for] certain staff and not us, who earn by the week.”

Employment and labour minister Thulas Nxesi last week said the UIF system had been upgraded to allow employees to check the status of Ters submissions by their employers.

Formex Industries CEO Hennie Venter has denied withholding any payments and said the company had met all legal obligations, adding that they had already paid 100 out of 500 employees.

“There is a general challenge with the UIF process and the payment, so we are still waiting for the remaining 400 employees to be paid.

“I cannot tell you how they selected which employees get paid.

“So that is what the employees are unhappy about, the slow pace of the processes, and some of the guys are happy to work but others would rather wait for the relief fund to pay and that is their choice,” Venter said.

The employees are among hundreds of panicked workers from across Nelson Mandela Bay who have flocked to The Herald offices — amid the lockdown — fearing they will not be able to sustain themselves after being forced to take unpaid leave during the shutdown.

Formex had been closed under lockdown level 5 but operations resumed last week at the start of level 4.

But workers said yesterday they would not report for duty until their money was paid.

Venter said payments for those who had worked last week were being processed and would be paid to the workers by Friday.