The Federation of Unions of South Africa (FEDUSA) welcomes the withdrawal of the implementation of the Unemployment Insurance Fund (UIF) reduction of the threshold against which contributions were calculated said Dennis George FEDUSA General Secretary. The Federation delegation under the leadership of the FEDUSA President Koos Bezuidenhout raised the concern in the National Economic Development Labour Council (NEDLAC) with the Minister of Finance directly that it would not be fair to reduce the contributions to the UIF, as it would be in the interest of the country to rather increase the unemployment benefits to those workers who have contributed but are unemployed at the moment. 

FEDUSA did not support the proposal to reduce the UIF contributions with R15 billion for the 2015/6 as the proposals to improve the UIF benefits are being tabled before Parliament during this current session argued George. The UIF has 8.5 million registered contributors, the fund has a surplus R72.3 billion and a net asset of R90.4 billion. It is imperative to utilise the UIF to support the creation of decent work through investments instruments (Bonds) of the Industrial Development Corporation (IDC) who in turn provides funding to both existing and start-up businesses. The IDC makes loans available to existing and start-up enterprises to promote decent job creation, which is vital for rapid inclusive economic growth said George.

In conclusion, it is important that Minister Nene tables the UIF Proposals in NEDLAC for the social partners to finalise the amendments to ensure that our people and the economy benefit from the interventions. It is also important for Government to table the broader social security reform proposals in order for social partners to deal with these matters holistically concludes George.

 

Issued by FEDUSA