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Employment and Labour Minister ​has taken extraordinary steps to try and break the impasse following the outcry that ensued when the Unemployment Insurance Fund indicated that it may not be able to continue funding the Covid19 TERS relief benefit beyond September.

Partners at NEDLAC have voiced their displeasure at the possible termination of the disbursements.

“As the Executive Authority, I have a duty to ensure that the Fund is not run down in such a way that it cannot meet its future obligations to its contributors.

“At the same time, we are conscious of the fact that the lockdown, albeit at a less strict level, is still in force and therefore there are industries that require support. That is why we have been engaging with partners to find the best way forward.

“We have engaged with all partners – labour, business and community but have so far been unable find common ground at this stage. The engagements are continuing and in fact have been escalated to the leadership level.

Minister Nxesi added that currently there are meetings “to explore possible alternative arrangements and options which would enable us to continue to provide some much-needed support to workers while ensuring long term sustainability of the Fund. Some of those engagements includes the meeting held this morning between the actuaries of the UIF, the PIC, the National Treasury and representatives of both business and labour," he said.

The talks, Minister Nxesi said, need to take into account that:

• The UIF has delivered on its commitment which was initially R40-billion over three months but has since paid out over R51-billion
• The UIF is contributory insurance scheme with responsibility to contributors of the fund – the registered employers and employees
• Signs already point to a major uptick in applications for normal UIF benefits which is the function of some 2.2-million jobs shedded so far.

Minister Nxesi has also committed to keep the country informed of whatever final decision is taken in the end.

For more information, contact:

Sabelo Mali

Ministerial spokesperson

082 729 5804

Or

Musa Zondi

Acting Departmental Spokesperson​

“Please continue to adhere to the lockdown regulations. Wash hands, sanitise and wear your mask.

-ENDS-

Issued by: Department of Employment and Labour