Nxesi rejects placing UIF under administration amid payment delays

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Employment and Labour Minister, Thulas Nxesi, has dismissed demands to place the Unemployment Insurance Fund (UIF) under administration despite mounting criticism over the fund’s inability to process and pay thousands of claimants.

The UIF’s shortcomings have left approximately 87,000 people without their much-needed financial support.

Business organisations and labour unions have joined forces in calling for a comprehensive overhaul of the UIF, highlighting its failure to disburse payments to those temporarily laid off during these trying times.

Union federation Congress of South African Trade Unions (Cosatu) has thrown its weight behind these calls and is actively seeking urgent meetings with the presidency and Nxesi to ensure that immediate action is taken.

Anger over UIF chaos – Labour & Employment Minister Thulas Nxesi weighs in:

In response to the mounting pressure, Nxesi has emphasised the government’s commitment to address the issues plaguing the UIF. Rather than resorting to placing the fund under administration, Nxesi insists that practical solutions are under consideration.

“Just talking about putting this thing under administration is not going to be helpful because we must continue delivering services,” Nxesi stated. He further elaborated that the government is actively working on a series of recommendations designed to revamp the UIF. These recommendations encompass structural improvements, a revamped strategy, necessary skill development, fostering a culture of efficiency within the organisation, and addressing IT systems, particularly cybersecurity concerns.

Nxesi has underscored the importance of modernising the UIF to meet the growing demands of its data-intensive and cash-intensive operations, drawing a parallel with the security measures employed by banks.