UIF set to extend benefit payment period

Addressing the Portfolio Committee on Labour, Seruwe said the move was aimed at easing the burden on the unemployed.

Seruwe said although the extension of the period for benefits was still under discussion at the National Economic Development and Labour Council (Nedlac), it was something "that will happen".

Presenting the UIF's annual report for 2012/13 to the committee, Seruwe said the fund had paid out a total of R6bn in its financial year, compared with R5.6bn last year - a 7.1% increase in claims.

In the same period, 731,131 beneficiaries had been paid - an increase of 25,276 compared with last year's figure of 705,855.

In the period under review the UIF had 1,465,218 employers (commercial, domestic and taxi) registered on the system, compared with 1,408,205 in March 2002.

The fund had 8,330,760 employees (commercial and domestic) registered on the system in March this year, compared with 8,125,575 in March last year.

Assets keep growing

Seruwe said the UIF currently has total assets valued at R81bn, compared with R65bn in 2012, while the net surplus for the year period under review was R16bn, compared with R11bn in 2012.

He noted that the UIF had grown the active U-filing employers from 35,868 active U-filling employers in 2012 to the current level of 42,487 - an increase of 18.45%.

"The UIF established a partnership with the Industrial Development Corporation (IDC) in 2010 in response to job losses that were taking place in the country. During the financial year, the UIF and IDC continued their collaboration through the issuance of an additional bond of R2bn.

"This has increased the total bond to R4bn. Since the inception of the UIF/IDC partnership, there have been 199 approved deals with a total value of R3.3bn," Seruwe said.

Job creation initiatives

To date, 21,234 new jobs have been created and 20,161 jobs saved by companies that accessed funding from the UIF/IDC initiative.

In another initiative, the UIF partners with Productivity South Africa, in which it funds the organisation's turnaround solutions to help companies that are in distress, so as to save jobs.

"In terms of the funding agreement, the UIF allocated R39m for 2012/13, and R55m is earmarked for the 2013/14 financial year and 130 companies are targeted for intervention, saving 10,200," said Seruwe.

Through the funding for the Training Lay-Off scheme, the UIF has budgeted R105m for the year with a further R400m to be spent over the next three years.

In a push to sustain proper financial controls and corporate governance, the UIF has posted yet a clean audit in the period under review.

Seruwe said the fund would continue consolidating its developmental programmes, such as funding training initiatives for the unemployed.

"We also believe job creation, especially in the area of beneficiation, needs attention. We are targeting sectors, such as textile and agro-processing, as part of the drive to revive industrialisation, while not forgetting tourism with its inherent potential," he said.

The UIF is a public entity of the Department of Labour that contributes to the alleviation of poverty in South Africa by providing effective short-term unemployment insurance to all workers who qualify for unemployment and related benefits.