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Agenda

Squid Council Mandate and Circular

Challenges

Opportunities

Proposal

Structure

Questions

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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

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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

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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.

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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

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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

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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

Statutory Council Proposed Sectorial Fund Structure

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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

Standard benefits

No quotation/tender

No upfront underwriting

One smoothed bonus investment portfolio

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Contributions and Premiums

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)

Employee

– 0% of salary

– May make additional voluntary contributions (any amounts)

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Insured Benefits - Death

Type of Benefit

Cover Special Conditions

Legal vehicle

Life Cover Age<50: R16 948

Age>50: R11 299.

6-months exclusion for natural death

Retirement Fund

Family Cover R5000: Employee, spouse, child aged <18 and >14

R2500: Child aged <14 and >6.

R1000: Child aged <6 (includes stillborn).

6-months exclusion for natural death

Insurance policy outside the Retirement Fund

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Insured Benefits – Injury and Incapacity

Type of Benefit

Cover Special Conditions

Legal vehicle

Lump Sum Age<50: R16 948

Age>50: R11 299

6-month waiting period

Pre-existing conditions excluded (24/24)

Retirement Fund

Income Replacement

R882,75.

Payable for a maximum of 5 months in any 24 month period.

1-month waiting period

Pre-existing conditions excluded (6/12)

Insurance policy outside the Retirement Fund

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Easy Benefit Plan – Contribution/Benefit Table

Salary pm Cont

L/S death * & disability

Temp Disability

Savings P.A.

Under 50 Over 50

R 1,177 R 100 R 16,948 R 11,299 R 882 R 518

R 2,500 R 213 R 36,000 R 24,000 R 1,875 R 1,344

R 3,500 R 298 R 50,400 R 33,600 R 2,625 R 1,968

* Plus family funeral benefit

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Questions