A financial package aimed at empowering the approximately one million South Africans employed as domestic workers in South Africa was launched today (25 September) by the Presidential Working Group on Women (PWGW) with the support of Old Mutual.
The PWGW, a group of women representing business organisations, labour organisations and NGOs, was set up by President Thabo Mbeki in 2006 to focus on social and economic issues facing women. A PWGW presentation in October last year to President Mbeki, ministers and senior government officials highlighted the need for financial products and solutions that focused sufficiently on the unique needs of women, many of whom continue to live in poverty despite the economic progress enjoyed by many South Africans.
According to The Widows Forum of SA, a member of PWGW, 60% of women over 55 years are left destitute after the death of their husbands; and 87% of widowed or divorced women over the age of 60, depend on their children for their welfare.
Chairman of the PWGW, Gloria Serobe, said: "We need to provide greater access to savings and cover for vulnerable groups such as women in rural areas, farm workers, single parents and domestic workers. Greater economic independence in their current working situations and in their retirement years, is key to true empowerment. The Domestic Workers Plan is a step towards this goal."
PWGW members who have helped bring the Domestic Workers Plan to the market include Myrtle Witbooi of the SA Domestic Service and Allied Workers Union; Gloria Serobe of Wiphold; Alet Vorster of Die Dameskring; Nontobeko Ntsinde of the Southern African Enterprise Network; Brenda Madumise of the Black Women Lawyers Association; Shereen Usdin of Soul City; Dora Ndaba of the SA National Taxi Council; Maggie Nkwe of the Widows' Forum of SA; and Laura Kganyaro of the Women's National Coalition.
The Domestic Workers Plan, the first in a range of initiatives to improve the financial circumstances of women, offers the following benefits:
Membership of a retirement fund with investments managed by Old Mutual;
Funeral cover for the family; and
Access to family support services, including:
* Health advice
* Trauma, assault and HIV support
* Emergency medical response
* Legal support, and
* Funeral support
The full package is available for a monthly contribution of R85 to R200 depending on the level of savings chosen. A fee of R7 is deducted from each contribution to cover the distribution costs of the product and a total fee of 1.65% a year (but calculated and deducted monthly) is charged for the management of the investment.
Head of the SA Domestic Service and Allied Workers' Union, Myrtle Witbooi, said: "This is an important milestone for domestic workers. I urge all employers of domestic workers and domestic workers themselves to embrace this opportunity to build their future."
Andrew Cartwright, Old Mutual Retail Mass Market Solutions Executive, said: "Domestic workers form an important part of our society, but very few enjoy the financial benefits that are common to formal jobs. While some financial services companies offer general products geared towards lower-income workers, this product brings a comprehensive package geared to the specific needs of domestic workers. This package offers domestic workers exceptional value at a very affordable entry level.
"We intend informing as many of SA's domestic workers as possible about this initiative. We hope that employers will assist their workers by paying the contributions over and above their workers' salaries. Domestic workers could also consider using part of their salaries to increase their monthly contributions."
Serobe added that the PWGW would continue to work with Old Mutual and other key players in the financial services sector to develop additional products and services for women. This includes a programme called Investing for Women that will leverage shareholder activism to encourage companies, in which retirement funds invest to adopt business practices that benefit women.
"Such initiatives should play a part in addressing the huge economic imbalances that exist in South Africa, and help empower women to take charge of their finances and plan for a better future."
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