Workers’ Rights: FTU Calls for Private Pension Funds Oversight

The United Workers Federation (FTU) has raised serious concerns about the practices of certain private companies that obligate employees to contribute to private pension funds. This trend has become increasingly common, the FTU pointed out, and it operated without any oversight from relevant authorities. The federation emphasized that, according to existing law, employees must provide written consent for any deductions from their salaries.

Atma Shanto, a negotiator for the FTU, highlighted the scale of private pension funds, which collectively hold billions of rupees and include worker contributions.

However, he stressed that there is currently no regulatory oversight regarding these funds or the investments made with employees’ money.

“Setting up a private pension fund is alarmingly easy. All it takes is to establish an association and register it with the appropriate authorities.

Once that’s done, workers are effectively obligated to join,” he explained.

Shanto noted that in some companies, contributing to a private pension fund has become a job requirement.

“There is no law mandating that workers must contribute to a private pension fund,” he stated, adding that employees are supposed to give written consent before any deductions occur.

In practice, however, this is often ignored.

One of Shanto’s key criticisms is that workers have no say over their contributions.

“General meetings where financial reports are presented and rules are voted on are held during work hours, and employees are not given permission to attend,” he said.

Consequently, he argued, changes can pass unnoticed, and employees may find that their monthly contributions have increased without prior notice.

“What is even more alarming is that when these workers reach retirement, they will only receive their own contributions, with no contributions from their employers,” he added.

Shanto is urging the government to impose regulatory oversight on private pension funds, particularly concerning foreign investments.

He pointed out a specific case where a company claimed that the government mandated the establishment of a private pension fund.

“Now that we have a new government, it would be prudent to verify this assertion,” he suggested.

He is also calling for an investigation into companies with private pension funds to ensure employees have genuinely consented to their deductions rather than being coerced into compliance.

In addition, Shanto criticized the working conditions within a company involved in food production and distribution.

He reported that employees, especially women, have limited access to restrooms, which he deemed unacceptable.

He expressed a desire for the Minister for Gender Equality to take notice of this issue, especially as these female workers are also subjected to abusive language in the workplace.

The union is planning future actions aimed at enforcing decent working conditions across this sector.

Currently, there are two cases related to wage increases and performance bonuses pending before the Employment Relations Tribunal.

Shanto described the labor relations within this group as strained and in need of urgent attention.

Source: Le Mauricien