Date: 17/09/2003
Source: Department of Labour
Title: Mdladlana: Unemployment Insurance Amendment Bill, NA
SPEECH BY THE MINISTER OF LABOUR, MMS MDLADLANA, ON THE OCCASION OF THE TABLING OF AMENDMENTS TO THE UNEMPLOYMENT INSURANCE ACT, National Assembly, 17 September 2003
Madam Speaker and honourable members,
Imbali yalo mthetho ndiwuthi thaca kule ndlu namhlanje ibuyisa iinkumbulo ezibuhlungu ezidandathekisa umphemfumlo ngakumbi kubasebenzi abamnyama ababengabandakanyeki ngenxa nje yebala labo. URhulumente wengcinezelo wayekhuthalele ukukhusela amalungelo abelungu. Umbutho wesizwe uNkongolo wafunga wamunca intupha wasonga imikhono wangena edabini elwela inkululeko yabantu beli lizwe. Waqula uNkongolo wabinza ngomkhonto wabinzisisa, waxikixa, waxovula, waxhifiza egazini ngenxa yamalungelo abantu abamnyama beli lizwe. URhulumente wengcinezelo akazange akwazi ukumelana nabasebenzi ababelugcwabevu ngumsindo, waxhoma izandla wanikezela lungongoza uvalo. Naxa banikezelayo bayicutha imali yale ngxowa ukuze abasebenzi abamnyama bohlulelana ngobugcwabalalana nemfilikitshi. Le ngxowa mali iye yashokoxeka bashiyeka abasebenzi bebambelele ezidleleni. Kuqengqeleke iminyaka le ngxowa-mali intsintsitheka oko mlilo wamalongwe amanzi. Yonke le nto isisenzo sangabom esinjongo ikukukhama loo mzi ontsundu.
URhulumente wabantu okhokelwa ngumbutho wesizwe- i- ANC uye wangenelela wayiguqula le meko. Kukulenguqulelo ke ekuthe kwabonakala kulithuba lokuba bonke abasebenzi abasisichenge sokuxhatshazwa njengabo basebenza emakhaya, bafumane ukubandakanyeka oko kuqala ezimbalini. Kwakunyanzelekile ukuba sikwenze oku ukuze imeko ye mali yale ngxowa iguquke imimitheke.
Two years ago we tabled before this House a new Unemployment Insurance Bill and promised you that the proposed legislation was aimed at repealing the old one, which was discriminatory in its application and spurious in its fiscal logic. We indicated then that unless we took the path we were proposing, the Fund would perpetually remain in the red and continue to place a perpetual burden on the fiscus. Indeed Parliament heeded our call and agreed to repeal the apartheid-style Unemployment Insurance Act of 1966, through the enactment of the Unemployment Insurance Act of 2001. We now have two years of implementing the new law during which we have made major gains but as fate would have it we have also learnt lessons as we were implementing our turn around strategy.
The proposed amendments to the Unemployment Insurance Act are part of the successful turn around strategy being implemented by the fund, based on four main pillars, i.e. legislative reform, information technology, human resources and institutional restructuring.
The successful and ongoing implementation of this strategy has already resulted in an increase in the Fund's income from R2.1 billion in 2001 to R3.8 billion in 2002/3. The fund also continued to provide benefits to unemployed workers. Despite the fact that 2002/3 saw a decline in unemployment and illness benefits, the UIF experienced an increase in benefits paid to workers on maternity leave and the dependants of deceased contributors. A total of R2.3 billion was paid out to the unemployed workers, while over 3 million commercial employees have been registered with the Fund.
The Fund has a surplus of R1.4 billion from a previous string of deficits. As part of the turnaround strategy, we were able to contain expenditure in an attempt to return to financial health and to create the financial strength needed to bring about lasting change.
Part of the new policy framework is an annual actuarial evaluation. In the 2002/3 evaluation the actuary concluded: "The Fund was in a sound financial state on a cash flow basis". In line with sound financial practice, the fund has started to implement a reserve policy with effect from the 2002/3 financial year.
As I mentioned, one of the pillars of the turnaround strategy was the implementation of new legislation, which saw the Fund widen its coverage, increase its revenue base and also improve the compliance levels.
The widening of coverage included the incorporation of domestic employees - achieving another milestone in the ANC government's commitment to protecting the most vulnerable members of our society. This was a world record as no other country has extended these types of benefits to the domestic sector before.
To date more than 560 000 domestic employers have registered and the details of over 430 000 domestic workers have been captured on the database of the fund.
Turning to the Bill before this House today, it provides for the following amendments:
The removal of the definition of CCMA in section 1 of the Act will mean that the CCMA will no longer have jurisdiction over UIF appeals and Regional Appeals Committees will take over this function. This change was introduced to ensure that appeals are handled speedily and by those who have direct experience of functioning of the fund. These appeals committees will include representatives from business, labour and community organisations.
The removal of the definition of seasonal workers will give this category of employees coverage. The previous exclusion was unfair and in my view discriminatory.
With the amendments we also exclude Public Servants as defined under Section 1(1) of the Public Service Act of 1994.
The amendments also address the situation of multiple employment relationships of domestic workers and bring in a concept of partial unemployment for those workers with more than one employer. This amendment is aimed at ensuring that a domestic worker, who is employed by more than one employer and loses one or more of those employers, shall be entitled to benefits. The amendments will also recognise that unemployment may arise for domestic workers in the event of the death of the employer.
The Bill further streamlines the benefits to allow claims officers to top-up benefits for those employees who continue to receive income from their employers whilst unemployed as a result of maternity, ill-health or as required by law to take adoption leave.
As honourable members would have noted, the Bill that I place before you today does not seek to overhaul what we all believe is an appropriate policy framework for Unemployment Insurance but only seeks to sharpen the policy instrument we have devised as our contribution towards an intended social security dispensation. Should these amendments be adopted, they shall go a long way in building on the successes I have outlined above. I beseech all of you to support this Bill in order to strengthen the current legislative instrument in meeting the needs of fellow South Africans who find themselves in a situation where the only place they can turn to, for relief, is the Unemployment Insurance Fund.
Thank you
Issued by the Department of Labour, 17 September 2003
Source: Department of Labour
Title: Mdladlana: Unemployment Insurance Amendment Bill, NA
SPEECH BY THE MINISTER OF LABOUR, MMS MDLADLANA, ON THE OCCASION OF THE TABLING OF AMENDMENTS TO THE UNEMPLOYMENT INSURANCE ACT, National Assembly, 17 September 2003
Madam Speaker and honourable members,
Imbali yalo mthetho ndiwuthi thaca kule ndlu namhlanje ibuyisa iinkumbulo ezibuhlungu ezidandathekisa umphemfumlo ngakumbi kubasebenzi abamnyama ababengabandakanyeki ngenxa nje yebala labo. URhulumente wengcinezelo wayekhuthalele ukukhusela amalungelo abelungu. Umbutho wesizwe uNkongolo wafunga wamunca intupha wasonga imikhono wangena edabini elwela inkululeko yabantu beli lizwe. Waqula uNkongolo wabinza ngomkhonto wabinzisisa, waxikixa, waxovula, waxhifiza egazini ngenxa yamalungelo abantu abamnyama beli lizwe. URhulumente wengcinezelo akazange akwazi ukumelana nabasebenzi ababelugcwabevu ngumsindo, waxhoma izandla wanikezela lungongoza uvalo. Naxa banikezelayo bayicutha imali yale ngxowa ukuze abasebenzi abamnyama bohlulelana ngobugcwabalalana nemfilikitshi. Le ngxowa mali iye yashokoxeka bashiyeka abasebenzi bebambelele ezidleleni. Kuqengqeleke iminyaka le ngxowa-mali intsintsitheka oko mlilo wamalongwe amanzi. Yonke le nto isisenzo sangabom esinjongo ikukukhama loo mzi ontsundu.
URhulumente wabantu okhokelwa ngumbutho wesizwe- i- ANC uye wangenelela wayiguqula le meko. Kukulenguqulelo ke ekuthe kwabonakala kulithuba lokuba bonke abasebenzi abasisichenge sokuxhatshazwa njengabo basebenza emakhaya, bafumane ukubandakanyeka oko kuqala ezimbalini. Kwakunyanzelekile ukuba sikwenze oku ukuze imeko ye mali yale ngxowa iguquke imimitheke.
Two years ago we tabled before this House a new Unemployment Insurance Bill and promised you that the proposed legislation was aimed at repealing the old one, which was discriminatory in its application and spurious in its fiscal logic. We indicated then that unless we took the path we were proposing, the Fund would perpetually remain in the red and continue to place a perpetual burden on the fiscus. Indeed Parliament heeded our call and agreed to repeal the apartheid-style Unemployment Insurance Act of 1966, through the enactment of the Unemployment Insurance Act of 2001. We now have two years of implementing the new law during which we have made major gains but as fate would have it we have also learnt lessons as we were implementing our turn around strategy.
The proposed amendments to the Unemployment Insurance Act are part of the successful turn around strategy being implemented by the fund, based on four main pillars, i.e. legislative reform, information technology, human resources and institutional restructuring.
The successful and ongoing implementation of this strategy has already resulted in an increase in the Fund's income from R2.1 billion in 2001 to R3.8 billion in 2002/3. The fund also continued to provide benefits to unemployed workers. Despite the fact that 2002/3 saw a decline in unemployment and illness benefits, the UIF experienced an increase in benefits paid to workers on maternity leave and the dependants of deceased contributors. A total of R2.3 billion was paid out to the unemployed workers, while over 3 million commercial employees have been registered with the Fund.
The Fund has a surplus of R1.4 billion from a previous string of deficits. As part of the turnaround strategy, we were able to contain expenditure in an attempt to return to financial health and to create the financial strength needed to bring about lasting change.
Part of the new policy framework is an annual actuarial evaluation. In the 2002/3 evaluation the actuary concluded: "The Fund was in a sound financial state on a cash flow basis". In line with sound financial practice, the fund has started to implement a reserve policy with effect from the 2002/3 financial year.
As I mentioned, one of the pillars of the turnaround strategy was the implementation of new legislation, which saw the Fund widen its coverage, increase its revenue base and also improve the compliance levels.
The widening of coverage included the incorporation of domestic employees - achieving another milestone in the ANC government's commitment to protecting the most vulnerable members of our society. This was a world record as no other country has extended these types of benefits to the domestic sector before.
To date more than 560 000 domestic employers have registered and the details of over 430 000 domestic workers have been captured on the database of the fund.
Turning to the Bill before this House today, it provides for the following amendments:
The removal of the definition of CCMA in section 1 of the Act will mean that the CCMA will no longer have jurisdiction over UIF appeals and Regional Appeals Committees will take over this function. This change was introduced to ensure that appeals are handled speedily and by those who have direct experience of functioning of the fund. These appeals committees will include representatives from business, labour and community organisations.
The removal of the definition of seasonal workers will give this category of employees coverage. The previous exclusion was unfair and in my view discriminatory.
With the amendments we also exclude Public Servants as defined under Section 1(1) of the Public Service Act of 1994.
The amendments also address the situation of multiple employment relationships of domestic workers and bring in a concept of partial unemployment for those workers with more than one employer. This amendment is aimed at ensuring that a domestic worker, who is employed by more than one employer and loses one or more of those employers, shall be entitled to benefits. The amendments will also recognise that unemployment may arise for domestic workers in the event of the death of the employer.
The Bill further streamlines the benefits to allow claims officers to top-up benefits for those employees who continue to receive income from their employers whilst unemployed as a result of maternity, ill-health or as required by law to take adoption leave.
As honourable members would have noted, the Bill that I place before you today does not seek to overhaul what we all believe is an appropriate policy framework for Unemployment Insurance but only seeks to sharpen the policy instrument we have devised as our contribution towards an intended social security dispensation. Should these amendments be adopted, they shall go a long way in building on the successes I have outlined above. I beseech all of you to support this Bill in order to strengthen the current legislative instrument in meeting the needs of fellow South Africans who find themselves in a situation where the only place they can turn to, for relief, is the Unemployment Insurance Fund.
Thank you
Issued by the Department of Labour, 17 September 2003
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