(JUBA) – Workers in South Sudan’s oil sector have raised objections to the rollout of the National Social Insurance Fund, arguing that the government proceeded with enforcement before key legal and administrative structures were fully in place.
The dispute centres on employees working under Dar Petroleum Operating Company, Greater Pioneer Operating Company and Sudd Petroleum Operating Company, who say they support the principle of social insurance but question the legality of the current implementation process led by the Ministry of Labour.
In a joint statement issued on Friday, the National Staff Unions and employee societies representing the three operating companies said they fully support retirement protection, disability coverage, survivor benefits and the safeguarding of employee contributions. However, they maintained that the process being followed does not comply with the law establishing the fund.
The unions stated that the National Social Insurance Fund Act 2023 requires proper institutional steps to be completed before enforcement begins. They argued that the formation of a Board of Trustees is a prerequisite before the appointment of a Managing Director and the operationalisation of the fund.
They said proceeding in the absence of a fully constituted board raises concerns about governance and independence of the institution. The statement warned that any deviation from the legal sequence risks weakening trust in the system that is intended to protect workers’ savings and benefits.
The statement was signed by Deng Gabriel Matur Malek, Chairperson of the Dar Petroleum Operating Company National Staff Union, Gabriel John, Chairperson of the South Sudan Workers Trade Union for Petroleum and Mining at Greater Pioneer Operating Company, and Victor Vojoki Caesar Zemangi, Chairperson of the Sudd Petroleum Operating Company Cooperative and Society.
The unions also criticised a directive from the Ministry of Labour’s Undersecretary instructing immediate compliance with the fund. They said key operational frameworks have not yet been published, including contribution rates, payment procedures, employer registration systems, employee registration processes, designated banking arrangements and the setup of individual worker accounts.
They warned that collecting contributions before these systems are fully established could create risks related to transparency, accountability and proper management of funds.
The unions called on the Ministry of Labour to suspend enforcement measures until full compliance with the National Social Insurance Fund Act 2023 is ensured. They specifically cited provisions relating to governance structures, administrative procedures and fund management requirements.
Among their demands are clearer guidance on the appointment process of senior leadership within the fund, wider public education on how the system will operate, publication of full implementation procedures, issuance of worker identification numbers and structured consultation with employers, trade unions and employee associations.
They further stressed that workers’ contributions should be treated as deferred income belonging to employees and therefore require strong legal protection and transparent management.
The unions also confirmed that they have engaged legal representatives to pursue formal action regarding the implementation process of the fund across the three oil operating companies.
The disagreement comes at a time when South Sudan is working to expand its social protection systems and improve welfare coverage for workers in both public and private sectors. The National Social Insurance Fund Act 2023 was introduced to provide retirement, disability and survivor benefits while building a structured social security system for employees across the country.