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Pushed To Lend?

The South African Municipal Workers’ Union (SAMWU) is currently facing criticism, as 7,000 municipal workers in Joburg claim union reps led them into debt

SAMWU members are saying that that union representatives encouraged them to take unsecured loans from Shosholoza Finance (which has close ties with the union). As a result, many members have found themselves over indebted and have had to turn to debt review to rescue them from their situation.

Members are saying that the Shosholoza loans came with high repayment terms, leaving them with very little money after deductions from their salaries, to cover loan instalments.

SAMWU’s Regional Deputy Chairperson, Lebogang Ndawo, denies the claims, arguing that the media is now exaggerating the situation. Ndawo acknowledges that some members are struggling with debt, but says it’s not solely due to Shosholoza Finance. He points out that insurance companies and other financial commitments (which also come off workers earnings) leave many workers with reduced take-home pay.

SAMWU encourages any member currently experiencing financial difficulty to seek advice and support from the union. Thousands of members have entered debt review for assistance.