Numsa’s expulsion to cost Cosatu R1-million a month

Cosatu will lose more than R1-million a month in affiliation fees after its central executive committee decided to expel Numsa.

“The only thing we did – in order to be a member in good standing in Cosatu – was to pay an affiliation fee,” National Union of Metalworkers of SA (Numsa) treasurer Mphumzi Maqungo said on Tuesday. Numsa’s estimate of R1 022 000 a month was based on a R2.92 affiliation fee from each of its estimated 350 000 members. 

This meant Cosatu could lose R12 264 000 a year without Numsa. Numsa also paid R38 000 towards the shop steward magazine, Maqungo said.

Congress of SA Trade Unions (Cosatu) spokesman Patrick Craven said the issue of finances was “a matter that Cosatu is still looking at”.

When asked on the potential loss in membership fees to Cosatu if the other pro-Numsa unions were no longer in Cosatu as well, labour analyst Terry Bell said only Denosa, CWU and Saccawu had substantial memberships.


“But if their contributions are added together, it would probably amount to no less than about R3-million a month.”

In terms of investments, the metalworkers union has its own Numsa Investment Company, while Cosatu has Kopano Ke Matla investment arm. Maqungo said Numsa has only invested through its company. “We have got our own investments as Numsa. There are no investments through them [Cosatu].”

Assets
Ntshalintshali said on Tuesday that the Cosatu constitution was “quite clear” about claims by members on the trade union federation’s investments. “The constitution is quite clear, its says because it is a collective it [the investment] belongs to the federation,” he said. 

“Equally it answers the question over what happens when you wind-up a federation, what happens to its assets, do you distribute among members… can anyone have a claim? 

“It [the constitution] says no. The federation as a whole has to decide over where to donate whatever you may have in terms of the assets… it is a constitutional requirement – it is not a question about getting dividends.” Bell said the investment area was “terribly opaque”. 

“But because these companies are, basically, at arm’s length from the federation/unions involved and are subject to rules governing investment companies, shareholders (be they unions or individuals) cannot really be disadvantaged for political reasons,” he said. – Sapa

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Sapa
Guest Author

Related stories

Jobs at stake as financial losses hit ArcelorMittal

South Africa’s steel producer’s earnings dropped in the first quarter of 2020 because of low demand and a lacklustre economy, exacerbated by the Covid-19 lockdown

Workers battle for UIF payouts

Snarl-ups at the Unemployment Insurance Fund and bosses not assisting employees worsens people’s suffering

Mboweni to further tighten the belt in his budget

The finance minister will cut departments’ allocations according to their cloth as one measure, and savings will have been made from underspend during the lockdown

Fawu fires deputy general secretary. Again.

Moloko Phakedi plans to fight the decision. Again. The Food and Allied Workers Union says it will continue its inquiry into the R19-million written off in the union’s investment wing

Invisible threat to workers’ rights

Nearly half of all workplaces inspected by the department of labour found to be unsafe

Employers are now compelled to claim Covid-19 relief from the UIF

In the first weeks of the lockdown, workers reported that they had been left with nothing to survive on as their employers failed to apply to the UIF
Advertising

Jailed journalist a symbol of a disillusioned Zimbabwe

Hopewell Chin’ono backed President Emmerson Mnangagwa when he succeeded Robert Mugabe. Now he’s in jail

Sisulu axes another water board

Umgeni Water’s board in KwaZulu-Natal was appointed irregularly by her predecessor, the water and sanitation minister claims
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday