Compensation Fund's administrative privatisation would pave the way to extend coverage for domestic workers
The Compensation Commissioner, Shadrack Mkhonto, has suggested that he would like the administration of the Compensation Fund to be outsourced to a private company. This is a welcome development, and if implemented, will likely help the Fund to provide better services.
Most importantly, this will aid the Fund in extending its coverage to domestic workers. In September, I announced a comprehensive plan to extend Compensation Fund coverage to domestic workers.
Domestic workers are currently the only category of non-military workers excluded from the Compensation Fund's coverage. When domestic workers are injured at work, they receive no support and often lose their jobs if they become disabled or have permanent injuries. This cannot be allowed to continue. And the privatisation of the Fund's administration is the first step in the right direction.
The Fund has long been hampered by administrative problems and a dysfunctional computer system. This means that onerous paperwork needs to be completed by hand every time a claim is lodged with the Fund. What we need is a sophisticated computer system that is integrated with the systems used by hospitals and medical practitioners. This is much more likely to be put in place if the Fund's administration is privatised. I therefore strongly support Mr Mkhonto's suggestion that the Fund's administration be privatised and will be pushing for further discussion on this topic in the Portfolio Committee on Labour.
With increased management capacity, the Fund would be able to register the thousands of domestic workers and their employers who have been ignored by the Fund thusfar. I have initiated a private member's legislative proposal to mandate the Fund to do just that and I will continue pushing for its implementation at every opportunity in Parliament.
Statement issued by Ian Ollis MP, DA Shadow Minister of Labour, November 2 2011
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