Last year the GladAfrica Championship title contenders decided to release players that then-new coach Brandon Truter deemed surplus to requirements.
The Union is accusing Swallows management of not playing by the book after they decided to terminate the contracts of the concerned players without first agreeing on a settlement with them.
"Swallows, we are referring the matter to PSL," SAFPU secretary general Calvin Motloung tells snl24.com/kickoff.
"They defaulted in terms of paying in January, they terminated the contracts unlawfully. They decided to terminate without consulting with the players.
"What pisses me off is that they are not negotiating in good faith. We've been having meetings with Swallows, talking.
"The chairman himself, Panyaza [Lesufi], the president himself [David Mogashoa], we had a meeting with him and he brought in Mandla Tshabalala the attorney. He said Mandla was the one who was going to speak to the Union.
"So they decided to terminate without even talking to us. Without even talking to us they terminate, they send clearances, the next thing they no longer pay in January. When I talk to Mandla, he doesn't know what to say. So we are taking the matter to PSL."
Swallows CEO Sipho Xulu was unaware that SAFPU is involved and offered no opinion on the matter.
"No, we are not aware, we are not informed yet," Xulu says.
"I can't comment on something that we are not informed of yet. For now I cannot comment further except to say we have not been officially approached."
Third-placed Swallows are on track for the promotion playoffs and are five points behind NFD leaders Ajax Cape Town with nine matches left in the season.