BMW pension fund to challenge court judgment ordering it to pay R55m
Vehicle manufacturer claims it has already paid former employees
German car maker BMW will seek an urgent rescission on an earlier court order compelling it to pay a group of former employees R55m from a surplus pension fund. BMW maintained it had already paid them, the company’s attorney Michelle David told Business Day on Sunday. The 1,390 pensioners were granted a default judgment in the High Court in Pretoria last week. However, BMW argued that its pension fund’s attorneys were not informed of the court action and did not get an opportunity to defend it. Business Day understands the pension fund has issued letters to the former staffers in 2008, promising to pay them R28,000 each after a R28m surplus fund was declared. However, when it was time to pay up, the pension fund issued new letters informing the pensioners that they would be sharing R2m. Thandiwe Moshabane, the attorney representing the former employees, said that even if the court reviewed the decision the BMW pension fund would have to explain where the other funds had gone. "Why d...
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