The National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) has recorded R2.59 billion of worker benefit money as if it were the council’s own property, according to an analysis of its audited financial statements.
NBCRFLI represents companies that move goods by road for a fee, from general freight and furniture removal to courier services and cash-in-transit. It also oversees storage activities such as unpacking, packing and dispatching. The council does not cover businesses that transport their own stock, for example Shoprite Group, Woolworths and Pick n Pay.
The issue surfaced after Innovative Staffing Solutions (ISS) took the council to court in 2024 when NBCRFLI stopped publishing its statements. The High Court ordered the council to release accounts for 2018 to 2025 and to pay ISS’s legal costs. When the records were examined, the R2.59 billion earmarked for sick pay, holiday pay, leave pay and wellness benefits was listed on the council’s balance sheet as if it belonged to the council itself.
Why separate statements matter
South African law requires each benefit fund to have its own audited statement. NBCRFLI failed to produce those separate statements, making it hard for workers to verify that their money is protected. The analysis found that the three main benefit funds fell short of covering what they owed for three years in a row, shortfalls of R35.8 million in 2021, R23.1 million in 2022 and R31.2 million in 2023.
In addition, the council blended R364.5 million of Wellness Fund contributions and R309.7 million of medical expenses into its own income and expense lines, further blurring the financial picture.
ISS Managing Director Arnoux Maré said the council’s own rules demand public financial information and that court action should not have been necessary. “Now that its financial statements have been made public, the council must address the concerns these statements have brought to light,” he said. “Workers should be able to see whether those funds remain properly ring-fenced, whether each fund can meet what it owes to workers, how income earned on that money is being used, and whether it is being used for workers’ benefit.”
Revenue reliance on investment earnings
NBCRFLI funds most of its daily operations from interest earned on the benefit funds rather than from the levies it collects from employers. For the year ending February 2025 the council earned R325 million in interest, more than double the R148.1 million collected in levies. Levies contributed less than 18 % of total revenue of R837.7 million, while interest income has exceeded levy income every year since 2018.
Benefit-fund investments make up R2.59 billion of the council’s R3.42 billion investment portfolio, 76 % of the total. This heavy reliance on market returns makes the council vulnerable to shifts in interest rates and economic conditions. The only recorded deficit in eight years occurred in 2022, when interest income fell to R131.4 million.
What this means for logistics SMEs
Small and medium-sized enterprises that operate trucks, forklifts or warehouses often belong to the NBCRFLI’s employer side. If the council’s benefit funds are not properly ring-fenced, those firms could face higher levies or be required to make up shortfalls, squeezing already tight margins.
Moreover, the lack of transparent accounting reduces confidence among workers, potentially leading to industrial action or higher turnover, both costly for small operators. SME owners should therefore monitor the council’s response and be prepared to adjust budgeting for employee benefits.
ISS is urging the Department of Employment and Labour and the Registrar to intervene, verify compliance and force publication of separate benefit-fund accounts. The council’s employer and union parties are also being asked to review how investment earnings and accumulated surpluses are used.
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