Will UIF Ters continue to be disbursed? Thulas Nxesi provides an update

Employment and Labour Minister Thulas Nxesi ​has taken extraordinary steps to try and break the impasse following the outcry that ensued after the Unemployment Insurance Fund (UIF) indicated that it may not be able to continue funding the COVID-19 Ters relief benefit beyond September.

According to the department, partners at NEDLAC have voiced their displeasure at the possible termination of the disbursements.

‘UNABLE TO FIND COMMON GROUND’ ON UIF TERS 

Nxesi, somewhere between a rock and a hard place said discussions are continuing. 

“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,” he said. 

“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,” he added. 

Nxesi said the department has engaged with all partners — labour, business and community but have so far been unable to find common ground at this stage regarding UIF Ters. 

“The engagements are continuing and in fact have been escalated to the leadership level,” he said. 

Minister Nxesi added that currently there are meetings to explore possible alternative arrangements and options which would enable the department to continue to provide much-needed support to workers while ensuring long term sustainability of the Fund. 

“Some of those engagements include 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; and 
• 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.

Nxesi said he is committed to keeping the country informed of whatever final decision is taken in the end.

DA CONCERNED 

The Democratic Alliance (DA), on Tuesday 3 November, said that cancelling UIF Ters — despite the fact that the national State of Disaster has been extended to 15 November is concerning. 

“The Minister of Employment and Labour, Thulas Nxesi, must take the nation into his confidence and communicate clearly about the future of the Ters benefit,” said DA Shadow Minister of Employment and Labour Michael Cardo. 

“Organised business and labour have been in ongoing, careful discussions about the possible extension of the benefit at the National Economic Development and Labour Council (Nedlac). Their work has now seemingly been unstitched by the shadowy NCC, which has charged into the arena like a bull in a china shop and single-handedly imposed a fiat when the outcome should be the product of collaborative decision-making.”