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Business organisation and Cosatu call for UIF to be placed under administration

Details

UIFBL Premium reports that Business Unity SA (Busa) has called for the Unemployment Insurance Fund (UIF) to be placed under immediate administration, citing systemic dysfunction and deep corruption within the statutory organisation.

Labour federation Cosatu said it supported the call by business and that it would be seeking an urgent meeting with the Presidency and Department of Employment and Labour (DEL) Minister Thulas Nxesi to ensure action was taken. The UIF provides financial support to workers in the event of unemployment and is funded by a levy paid by employers and employees. . Its assets amounted to R135bn as at end-March. In a statement on Wednesday, Busa CEO Cas Coovadia said UIF commissioner Teboho Maruping had failed to address systemic issues and Nxesi had not responded positively to several Busa letters. He called on Nxesi to act speedily to address the issues.  “The ineptitude of the UIF to fulfil its promises has led to workplace disruption and had a negative impact on the employer-employee relationship. Of major concern is the fact that calls for the authorities to intervene have gone unheeded,” Coovadia said. Cosatu’s Matthew Parks said they were “deeply concerned by the continuous challenges workers experience when submitting their claims to the UIF, as well as continuous allegations and revelations of serious corruption surrounding some UIF investments”. He called on President Cyril Ramaphosa to put the organisation under administration and for the Special Investigating Unit to investigate its investments.

  • Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
  • Read too, Business sounds the alarm over 'dysfunctional' UIF, at Fin24


Get other news reports at the SA Labour News home page