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Agenda

Agenda. Squid Council Mandate and Circular Challenges Opportunities Proposal Structure Questions. Mandate.

ila-calhoun
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Agenda

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  1. Agenda • Squid Council Mandate and Circular • Challenges • Opportunities • Proposal • Structure • Questions

  2. Mandate • The powers and functions of the Statutory Council include, inter alia::: to perform the dispute resolution functions referred to in section 51 of the Labour Relations Act;:: to promote and establish training and education schemes;:: to establish and administer pension, provident, medical aid, sick pay, holiday and unemployment schemes or funds or any similar schemes or funds for the benefit of one or more of the parties to the council and/or their members; :: to conclude collective agreements :: to give effect to the matters mentioned in the constitution;:: to enforce those collective agreements;:: to prevent and resolve labour disputes;:: to determine by collective agreement the matters which may not be an issue in dispute for the purposes of a strike or a lock-out at the work-place;:: to confer on work-place forums additional matters for consultation;:: to provide industrial support services within the sector;:: to determine and administer uniform conditions of employment for all the parties to this council; and:: to monitor compliance

  3. Circular to all Employers • Dated 9 July 2009 • Request for a survey to be conducted • Death and disability benefits mentioned • Funeral Benefit Mentioned • Funeral Support benefit mentioned • Retirement and withdrawal benefit mentioned • An amount of R100 per month is stipulated as a contribution per member of which R50 is payable by the employee

  4. Challenges • The council would want to establish an industry fund.  This is to serve two purposes: • The members should only be entitled to their withdrawal benefits if they leave the squid industry.  Entitlement to the withdrawal benefit when moving from one employer to the other is out. • There should be a uniform benefit set across all employers • The individual employers would need to contribute on a monthly basis.  There are approximately 110 employers representing 120-130 fishing vessels • The people who will be members of this fund are going to be the individual fishermen.  There are 2 500 active in the industry presently.

  5. Challenges • There seems to be a low level of loyalty from members to a particular employer.  There is a significant level of staff movement between boats (which could be with the same employer) or between employers. • Staff also often has extended breaks from employment for various reasons.  This is over and above the seasonal nature of the industry. • The industry is commission driven.  Therefore, the requirement is that we have a flat rate and flat rand amount as a contribution per member. • The main concern is going to be how to administer the movement of staff and matching of funds on a monthly basis

  6. opportunities • Chance to establish one fund for the sector • Provide the industry with a core set of benefits • Consider one central point of administration • Establish a data base – controlled by the council • Greater control over staff movements within the sector

  7. Proposal • Use the Superfund Umbrella Provident Fund as a basis • Statutory Council is the Proposer of the fund • Participating Employers pay the monthly contributions into the Council’s Bank account • Participating employers submit data to a point in the region. Greater control over the data and problem solving will be facilitated • Intermediary appoints a resource to complete the monthly data • Local control over the administration of claims • Resource to provide feedback to the council on a regular basis – together with the intermediary

  8. Statutory Council Proposed Sectorial Fund Structure

  9. Standard benefits No quotation/tender No upfront underwriting One smoothed bonus investment portfolio • Defined Contribution Umbrella Provident Fund • Defined employer contribution, employee make voluntary contribution • Umbrella Risk Arrangement • Insured benefits are pre-determined and pre-priced • Family Funeral Benefit • Standard scale

  10. Contributions and Premiums • Employee • 0% of salary • May make additional voluntary contributions (any amounts) • Employer (% of salary) • Retirement Savings: 5.2% • Insurance: 2.5% • Scheme expenses: 0.8% • Total: 8.5% • Fee of R18 pmpm in addition to scheme expenses fee (deducted from savings account)

  11. Insured Benefits - Death

  12. Insured Benefits – Injury and Incapacity

  13. Easy Benefit Plan – Contribution/Benefit Table * Plus family funeral benefit

  14. What is good for South Africa is good for South Africans!

  15. Questions

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