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Sanlam, a prominent name in the insurance industry, has recently found itself embroiled in a controversy surrounding its management’s implementation of new policies, leaving its employees in a state of unrest and dissatisfaction.
According to Sanlam National Advisors Mawethu Mbusi, it is said that under the leadership of CEO Bongani Madikiza, the introduction of the New Terms and Conditions (NTC) policy has sparked tensions between management and employees, raising concerns about fairness, transparency, and employee welfare.
Sanlam employees across the country have handed down tools for almost a month.
The NTC policy, enforced from March 1st, 2024, imposes punitive measures on policy consultants if a client decides to terminate their policy contract.
Mbusi told Kasi Voice News that consultants are denied their rightful commissions in such instances, a decision made without proper consultation or consideration for the impact on employees.
“This unilateral action by management reflects a disregard for the well-being of the workforce, creating an atmosphere of mistrust and discontent among employees,” says Mbusi.
One glaring issue lies in the lack of transparency and communication between management and the Board.
It is alleged the CEO misled the Board regarding the necessity and implications of the new policy, painting a misleading picture of the company’s situation.
“The new NTC policy state that if a policy client decides to terminate their policy contract you as the policy consultant you will not be paid your commission in which this new rule was never consulted in the first place, it is basically an abuse of new law initiated by management and the CEO Bongani who has lied to the board of SANLAM that he can turn things around,” stressed Mbusi.
Consequently, the Sanlam board was blindsided by the harsh realities faced by employees, highlighting a systemic failure in governance and oversight.
Moreover, management’s heavy-handed approach further exacerbates the situation.
It is alleged that the management has threatened to terminate contracts of those that are partaking the strike.
Majority of Sanlam employees across the country have now entered a full month without reporting to work.
In a letter from the office of the CEO at Sanlam and seen by Kasi Voice News, the letter read that those that are not working and preventing other employees to report to work, their contracts will be terminated.
“Whilst we respect the rights of individuals to protest legally, we equally reserve the right to protect and serve our clients in their time of need. Not working or preventing others from working, break
the terms of the employment contract.
“Disciplinary action will be taken against those found guilty of breaking these contractual terms, which may lead to the termination of employment with potential debarment so as to ensure the continued protection of the industry,” read a letter.
Mbusi says threats of termination for employees participating in a go-slow protest demonstrate a clear attempt to coerce compliance, rather than addressing underlying grievances.
“Letters demanding signatures under duress only serve to deepen the rift between management and staff, perpetuating a toxic work environment.
The impact of these policies extends beyond the internal workforce to affect policyholders as well,” added Mbusi.
It is further addressed that, employees reliant on commissions for their livelihoods, face financial strain due to penalties imposed for cancellations beyond their control.
Furthermore, the company’s failure to adequately compensate employees for reinstated policies reflects a lack of empathy and fairness towards those at the forefront of customer service.
PWUSA calls for heads to roll
Despite efforts to seek redress through channels such as the labor department and the Commission for Conciliation, Mediation, and Arbitration (CCMA), employees continue to face an uphill battle against unjust treatment.
The labor department’s surprise at the severity of the situation underscores the urgency of addressing these issues and holding management accountable for their actions.
“Well we have met with department of labour and in which they were shocked to hear of such treatment and they advised that we should approach CCMA, and we met with CCMA in Johannesburg last month and they gave us a room to listen to our grievances.
“It’s almost a month since we have initiated a go-slow strike and will continue as long as our grievances are not attended,” Progressive Workers Union of South Africa (PWUSA)’s spokesperson Mzwandile Mpofu said.
The plight of SANLAM employees serves as a sobering reminder of the power dynamics at play within corporate structures.
Mpofu said only through genuine dialogue, transparency, and a commitment to equity can Sanlam hope to rebuild trust and foster a culture of mutual respect and cooperation.
PWUSA said it formally submitted their demands in accordance with the labour laws of the Republic of South Africa.
“In light of the current dispute referred by our members to the Commission for Conciliation, Mediation and Arbitration
(CCMA) under the case number ECEL1818-24 schedule for conciliation on 8 th May 2024 in Mthatha, the Union would like to engage with management in order to find an amicable and lasting resolution to the impasse,” says Mpofu.
Mpofu said the labour Union agrees with Abulela Gazi, the Sanlam Retail Mass Distribution Executive that the new “change has a potential impact on advisers earnings”.
“The unilateral decision to implement LAPSES and NTU’s policies as Internal Replacements (IR) deepens the financial stranglehold on advisers, this unilateral decision by Sanlam management, is set against the backdrop of the financial crisis caused by the 2008 structural crisis of capitalism which was exacerbated by the Covid19 devastating economic crisis in 2020, the global economic crisis caused by Russia- Ukraine geopolitical conflict in 2022 and Israel-Hamas Middle-East conflict of 7 October 2023,” said Mpofu.
Demands to Sanlam
Mpofu says these are some key demands to the Sanlam management, and should they be met, they will call off the strike nationwide.
- NTU’s, LAPSES and WITHDRAWALS not to be included in the Internal Replacements (IR)
- Medical Aid to be optional or transfer employees from Bonita’s to a new Medical Scheme
- Average payment for the month of April
- Suspension of incentives for April 2024 and May 2024
- No payment of incentives on our salary advice, Judosh card to be used for all incentives
- No employees be dismissed or victimized for taking part in the petition and industrial action
- We need promotional items for each and every adviser up to a certain value
- Timeframe for the proposal that are not met on Wednesday meeting in three working days
- CCMA encourage parties to use Internal structures to resolve disputes and we request Sanlam management to propose a date, time and venue for the meeting to discuss and resolve the above-mentioned demands.
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Please help me I was working for sanlam from 2015 things started to be sour at sanlam during covid 19 NTUs and Lapses we start draining my earnings then I decided to resign with an idea to get money from pensions to buy a car so i can go to far places to get more business in my bag but my surprise was that when re-apply for being employed to sanlam again iwas rejected that I am owing sanlam the money for my NTUs and LAPSES I left behind on my code,sad part is that I have still 343 policies which are still IN-FORCE and they still enjoying the money for my Renewals but they are tell me that I am owing them so all in all I am not working sitting at home doing nothing in addition they block me not to be employed anywhere,please help me
This statement is true 100% I’m from sanlamsky mmabatho branch this people are abusing our rights they want us to work for free ,imagine working on the street for the whole day and when we capture a case it will say the case is replacement it won’t pay you for what, let Abulela fix his mess we are tired of this nonsense please……
I struggle to work through new rules
Thus is a 100% truth….let sbukrkrka bring back our old sanlam …please
Its true
This is a true story
Everything its true
It is true Sanlam it’s just exploiting their workers they want them to be volunteer,they must remove that replacement rule.
It is true all the news paper is saying it is very true
We are against about this new rules of cancelation
We are against about this new rules
Everything is true. Thank you
That true,we are sick and tired of being bullied by Bongani Madikiza and Abulela.
PWUSA
Our situation is very bad, from the 01/03/2024 our CEO Mr Bongani Madikiza turned our lives up and down by implementing new rules that suppress all the advisors
We are still in strick for new Replacement rules and cancelation and NTU
We want our old rules Sanlam.Sikhathele ilolushintsho elisibangela ukuth singahholi.4 mnths back and 4mnths after siyaxolisa asiwudingi. Replacement rule asiythandi lena
To add on Mr Mbusi’s statement we go home bare handed at the end of the month bcz of clawback which took first year and second year commission simultaneously as if u are the reason why that client can afford to pay the policy while the client pays the policy for 2 full years and Sanlam took away all the commission you got for that client
It’s important for Employers to take care of their employees because without them there’s no profit for the company.
What happening in Sanlam is disgrace so big company that doing so well, why now
It was better 2years back coz it was easy to make 45 cases in 3 mnths to qualify Kudosh
Its what is being said by my colleague for example I’ve beaten by the policy that i wrote 2022
i’m Sanlam employee and we have been struggling since the beginning of these new Internal Replacement. I wish this issue to be resolved as quickly for us to go back to work .
Sicela ama promotional
Sicela I incentive but not in salary
No replacement rules
They promise nothing like reistment form but dololo.
There is a lot to be unpacked. There is no way the company can impose some rules on us without any communication with advisors. We are dealing with clients every day and we as advisors are the once who brings those clients who contributes monthly premiums to the company, of which the company is benefiting more with advisors hard work but yet go home with zero checks.
1. NTU and LAPSE rule to be adjusted.
2. Taxation of INCENTIVES to be scraped.
3. Medical aids are expiring due to non contributions from the advisor as a result of zoro checks. but yet the company says its contributing certain percentage. THAT NEED TO BE CONSIDERED.
4. We are a commission based earners. We request for termination of claw backs more especially SECOND YEAR COMMISSION.
I’m the one who works for Sanlam sky, they robbed me even in commission I didn’t get all my commission in March 2024 that worth nearly R10 000. And I reported this case to Branch Manager but I didn’t get my commission back. They repeat clawback as much as they want , sometimes you left with Nil cash. It’s worse after the implementation of this replacement.
Oh what’s a sad story, basically I have heard about this story but hopefully justice will be saved regarding this story
I’m strongly agree with the above mentioned statement, I’m the sanlam advisor being threatened and victimised to come and report to the office while I’m on go slow strike submission, then my manager said, failling to do so Executive management will terminate my contract because I ended up close business with zero case on April production month. We need justice because we do have families, children, to feed or take care off, also we need money to go and find new business and bring to the company that feeds our managers, then come month end you just go at home with an empty handed zero cheque while you’re at work for the whole month , we have lapses its even worse after implementing this new rule of internal replacement mentioned above. Then they decided to threatened us by submitting business so that they can meet their own target and earn at the end of the month then what about us as reps it’s so sad🥲🥲 please shout SA citizens maybe we can find help , we are tired of being work for such a very big company and earned zero cheque at the end of the month with this new rule being implemented
I’m not agreeing with the new internal replacement policies .
We got it
I am a Sanlam employee everything that mentioned above is true. Ever since those two people from Old mutual came in our workplace we never got peace. We always crying we don’t earn money the company have so many problems each and every month they changing things even us as workers are confused. I think those people came to destroy this company and I also think they are also confused as well because their T&C are disgusting 🤢
My coment I wish to solve this issue so that we can go back to work
We will not allow to be volunteers while we are breadwinners, we are the employees ,we need to work and get paid
We the employees of sanlam have every right to strike against the introduction of the new changes and all the other things that have mentioned above as it is not fair on us .
These new changes will cause a great impact financially on us the employees of sanlam leaving the employees with the burden of being unable to provide for our families
The threats made by sanlam to terminate contracts of employees who are striking against means to rid us of our sweat and blood is an abuse of power by top management trying to scare us from fighting for what is rightfully ours
We as Sanlam employees fully support and agree with the demands made
Thank you Mr Amber, for being such a Hero ,our company failed us , of so much of being exploited and being suppressed its really tragedy because of a new system recommended by a person whom doesn’t even know the pain of not earning wherelse some of us are king bread winner ,we have children to take care , installments to pay lastly medical bills If we don’t earn we are we supposed to get money ? Wherelse he is sitting comfortably his bank reflecting alot of rands, sanlam has been such a incorporating company a long established one then boom a person comes and makes a change which not only affects but torture us there’s a lot but thank you Mr Amber
Thank you Mr Amber with your leaders ngokusimela to fight for us kulo Sanlam odlalqngathi,Odlamqndlethu once oncela negazilethu ngithi phambili bafowethu ningaphel8moya
Yes we very much know this and we in support of Mr mbusi we are tired of complying with things that affects our salaries.being unable to pay for our basic living expenses while we work hard and being unable to move from point A to point B because our money is taken away from us that we putted our sweats in,mostly medical aid that is being suspended when we need it the most not because we did not work but it was taken away from us we are unable to get to the best health care we need.we say no to exploitation of us as workers.
We are suffering as Sanlam Sky employees what kind of a job where there are months that you go home with a nill cheque at the end of the month but you tell people that you are employed and worse part this new rule of theirs is here to burie us alive but we also have families to take care of and bills as we talking we dying of depression because we know not gonna get anything by month end and they took these decisions without involving us as people who go out there whether it’s raining or sunny to face what ever situation you may come across trying to get something for your family it’s very hard for us that’s why we saying enough is enough
Replacement Rule must fall especial lapse and Ntu
As a sanlam employee I agree with all of the above
1. As Sanlam employees we are not happy at all with this new replacement rule.
2. We also want promotional items to be given to us by the company, just like our competitive companies so that we can give to the clients. Instead Sanlam wants us to buy the promotional items so that we can give to their clients.
1. We are not happy with the new replacement rule.
2. As Sanlam employees we want promotional items to be given to us by the company so that we can give to their clients. But we are expected to buy the promotional items so we can give to their clients.
Sanlamsky intimidate employees and robbed them money…we sick and tired of Abulela Gazi and Bongani Madikiza (the Executives) they called us with names and promised to fired us.
Replacement rule must fall, we cannot continue working for free.This management only think for themselves.
Reversal must fall 😭😭
New replacement rules NTU, LAPSES, CASH WITHDRAWAL Must fall
Sanlam is robbing us with this rule we want it out we will be volunteers while we are commission workers let them stop robbing us
Internal replacement must fall
It is so unfair to the employees that they have to suffer because of the personal decisions of clients to cancel their policy, secondly the new CEO should’ve discussed the terms and conditions with his/her employees to have good working relationship.