Sharp claims Unemployment Bill amounts to 'political engineering'

"These amendments are essentially a means of grabbing the accumulated surplus in the Unemployment Insurance Fund," he claimed.

"Government has authorised the fund to invest directly in job-creation initiatives and by so doing, is wasting money and a misusing taxpayers' resources," Sharp alleged.

"The sizeable accumulated surplus is clearly an indication that claims against the funds are far less than employer contributions," he said.

Sharp said the fund has long outlived its usefulness.

"Unemployment Insurance Fund contributions are unnecessary and the fund should be wound up rather than being used for a series of white elephant projects," Sharp said.

The government unveiled the proposed amendments to the Act last week. It is the second time amendments were introduced since 2003.The amendments include:

• Including learners, public servants and foreign workers who are not covered in terms of the provisions of the act;
• Extending the period of payment of benefits from eight to 12 months;
• Extending the period in which a contributor can lodge a claim from six to 12 months;

• Providing for the nomination of beneficiaries in case of death benefits.

Department of Labour's ministerial spokesman Musa Zondi said the bill was being released for public comments.

"After encapsulating public comments in the bill, it will then be tabled at the National Economic Development and Labour Council for social partners to consider," he said.

Sharp said that he did not think the state should take responsibility for people who have been fired for workplace misconduct.

"Regarding retrenchments very few companies close down their businesses, and there is a competition for skilled people in the market. If you look at the number of people who benefit from the fund in proportion to those who contribute towards it, you'll find that the numbers are skewed.

"This is a classic example of political engineering for the elections," he said.

Source: Sowetan via I-Net Bridge