JOHANNESBURG, Gauteng — The National Bargaining Council for the Road Freight and Logistics Industry has firmly denied allegations that it misappropriated nearly R2.6 billion in workers’ benefits, maintaining that the funds are strictly distributed to eligible employees as and when required. The high-stakes dispute, brought forward by professional staffing agency Innovative Staffing Solutions (ISS), centers on claims that the council treated workers’ money as its own property and has now landed in the High Court.
The Allegations Against the Bargaining Council
The legal battle began in March 2024 when ISS challenged the constitutionality of the bargaining council. According to the staffing agency, the council allegedly stopped making its financial statements available to the public and began placing money collected for workers’ benefits on its own books.
ISS’s investigation uncovered several financial discrepancies, including:
- R364.5 million in wellness fund contributions being recorded as the council’s own revenue.
- Insufficient assets in the sick pay holiday and leave pay funds to cover their liabilities at the end of each financial year from 2021 to 2023.
- A heavy reliance on interest earnings and investment returns as the council’s primary source of income.
ISS has also called on the Department of Employment and Labor to verify the council’s compliance and demands a thorough review of how investment earnings and accumulative surpluses are being utilized.
Economic Impact and Industry Concerns
Representatives for ISS argue that the financial integrity of the bargaining council is a matter of national economic importance.
“When it comes to these financial discrepancies, we are talking about one of the biggest sectors in our GDP, and it literally affects hundreds of thousands of employees,” an ISS representative noted. “Transport is the lifeblood of the South African economy because we transport 96% to 97% of all goods by road freight. It would be terrible if something had to go wrong.”
The Council’s Defense and Rebuttal
The National Bargaining Council has categorically denied all allegations, arguing that ISS’s legal challenge is merely a retaliation tactic. According to the council, the primary reason for the lawsuit is that the staffing agency is refusing to register with the bargaining council, which is a legal requirement.
Defending its financial record, the council stated it has paid over R3.4 billion in rand to industry employees during the 2025 and 2026 financial years. Furthermore, the council highlighted that it has consistently received unqualified audit opinions over the past 10 years, including for the financial year ending in February 2026.
Addressing the accusations directly, a spokesperson for the council dismissed the claims regarding the R2.59 billion shortfall as baseless and inaccurate.
“What we want the industry employees, employers, and the public to understand is that Mr. Ma is attacking the council,” the spokesperson said, referring to the ISS representative. “The reason for that relates to the circular that he requested us to withdraw, which we refused because that circular was very factual and based on a ruling from the court at the time. He is trying to paint the council in a bad light in terms of running its operations.”
The spokesperson reassured stakeholders that the council’s financials are in order, its obligations are being met, and its operations are fully compliant.
Upcoming High Court Hearing
With both parties standing firm on their positions, the matter is set to be heard in the High Court in Johannesburg in October 2026. The outcome of the case could have significant regulatory and financial implications for the road freight and logistics sector.
