Seifsa CEO Lucio Trentini
Industry organisation the Steel and Engineering Industries Federation of Southern Africa (Seifsa) says the agreement to provide access to housing for industry workers has been referred to the Metal Industries Provident Fund and Engineering Industries Pension Fund (MIPF/ EIPF) Investment Committee, which is testing the veracity of the undertaking from a legal due diligence point of view before any investment case will be considered.
This follows collective bargaining negotiations over many years under the auspices of the Metal and Engineering Industries Bargaining Council.
The commitment by the collective bargaining partners to meaningfully address access to housing for industry workers is a long-standing item that has featured on the list of union demands over many years, Seifsa CEO Lucio Trentini points out.
He notes, however, that any investment of the funds cannot be done outside the course and scope of the fund rules, read together with the Investment Policy Statement (IPS), as well as the Pension Funds Act.
Additionally, as this matter may concern an investment of funds’ assets, the Financial Sector Conduct Authority is aware of this matter and is providing oversight.
"An investment will not be made without the regulatory and investment hurdles having been overcome," Trentini says.
"The housing sector has a potentially enormous role to play in the revitalisation of the South African economy and the metals and engineering industries. This point is underlined by the very high direct and indirect economic multiplier effect of housing production.
“The parties have, therefore, agreed to forge a partnership between the various tiers of government, the private sector, industry stakeholders and communities with the goal of leveraging and ring-fencing metals industry pension and provident funds for housing.
“Success in meeting the housing challenge will be one of the cornerstones of rebuilding our social structures and regenerating the economy,” comments Trentini.
Seifsa, on behalf of its 18 member organisations, concluded a settlement agreement with the industry’s five trade unions on terms and conditions of employment for the next three years in May.