The Unemployment Insurance Fund (UIF) notes the decision by Business Unity South Africa (BUSA) to withdraw its representatives from the UIF Board and related National Economic Development and Labour Council (NEDLAC) structures.

It is common cause that participation in these statutory governance forums remains the prerogative of each social partner. The UIF has, in all material times, held the view that the effective discharge of public governance responsibilities is best achieved through continued engagement, constructive dialogue and adherence to established institutional processes.

It is for that reason that the UIF engaged in good faith and utmost professionalism as required from a responsible government institution.

The UIF Board and NEDLAC are statutory governance structures established to facilitate consultation, accountability and consensus-building on matters affecting the labour market, social security and economic development. These structures are intended to provide an institutional social dialogue platform, through which diverse and differing views are debated.

It is through social dialogue that evidence is considered, and policy positions are refined in the interest of the public.

Regrettably, withdrawal from these forums limits opportunities to influence governance outcomes through the very mechanisms established for that purpose. This is contrary to the principles underpinning South Africa's social dialogue framework, which places a premium on sustained engagement, even where significant differences of opinion exist.

During the governance engagements, the UIF consistently advanced proposals aimed at strengthening institutional governance and improving labour market outcomes. These included the need to improve employer compliance with the Unemployment Insurance legislative framework to protect contributors and beneficiaries, strengthen the financial sustainability of the Fund, and enhance service delivery.

The UIF consistently advocated for policy reforms that would enable government institutions to respond more rapidly and effectively to internal and external economic shocks affecting employment, while supporting interventions that preserve jobs, facilitate labour market participation and reduce unemployment.

Unfortunately, the proposals by BUSA which the UIF needed further information to engage further on. Suggested coming up with processes that will change benefit processes. Especially because they are not in line with the UIF process.

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While the Fund respects the right of all social partners to determine their level of participation

in established forums, it is important to clarify several issues to ensure that the public is accurately informed.

The UIF remains firmly committed to the principles of social dialogue, transparency, and accountability that underpin NEDLAC.

The NEDLAC task team was established to provide a platform for government, organised business, organised labour, and the community constituency to engage constructively on matters affecting the Unemployment Insurance Fund and the broader labour market.

The UIF does not believe that disengagement is the most constructive approach to addressing the challenges facing the Fund or the South African labour market. Rather, the Fund is of the view that these challenges require continued collaboration and focused discussions among all social partners to develop practical and sustainable solutions.

During recent engagements with the social partners, the UIF proposed that the task team's Terms of Reference be reviewed to better reflect current labour market realities, recognising that the committee was initially established during the COVID-19 pandemic. The Fund further proposed that the task team prioritise strategic issues, including:

1. Improving the efficiency and timeliness of benefit payments by addressing the root causes of delays, particularly employers' failure to submit accurate and up-to-date employee declarations.
2. Strengthening initiatives to expand access to UIF services and improving communication strategies to ensure that workers and employers are better informed about available services.
3. Supporting initiatives aimed at revitalising the labour market in response to persistently high unemployment and evolving economic conditions.
4. Exploring strategies to improve the resilience and labour intensity of the South African economy in the face of global economic pressures.

The UIF also reiterated its commitment to enhancing transparency. In this regard, the Fund has undertaken to explore the publication of the names of Labour Activation Programme (LAP) partners and to present the LAP Impact Report to NEDLAC once it has been finalised during the current financial year.

The Fund acknowledges concerns raised regarding the frequency of reporting to the task team and has explained that reports forming part of quarterly performance reviews are subject to rigorous internal quality assurance and validation processes. As such, requiring these reports on a monthly basis may compromise their quality and reliability.

The UIF remains committed to providing timely and accurate information while ensuring that reporting standards are maintained.

The UIF values the contributions of all NEDLAC constituencies and remains committed to constructive engagement with BUSA and all other social partners. The Fund's focus remains on improving service delivery, strengthening governance, enhancing transparency, and working collaboratively to find solutions that benefit workers, employers, and the South

African economy.

The UIF therefore rejects any suggestion that meaningful governance reform can be achieved outside the established statutory structures or through disengagement from the institutions created to facilitate oversight and social dialogue. Robust debate, differing perspectives and critical scrutiny are integral components of good governance. However, these objectives are best realised through active participation in governance forums rather than withdrawal from them.

The UIF remains committed to transparent governance, accountability, compliance with the Public Finance Management Act and the Unemployment Insurance legislative framework, and constructive engagement with all social partners.

The Fund will continue to execute its mandate in accordance with the law and established governance processes and remains available to engage any stakeholder committed to advancing sustainable labour market reforms, strengthening institutional governance and improving outcomes for workers, employers and the South African economy.

For media inquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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