NUMSA submission to parliamentary hearings on Unemployment Insurance Amendment Bill
The National Union of Metalworkers of South Africa (NUMSA) has made a submission to the Portfolio Committee on Labour on the “Unemployment Insurance Amendment Bill”, which will amend the Unemployment Insurance Act (UIA).
Officially unemployment stands at 25.5% and is in reality higher at 34.9%, if the expanded definition is used. This, combined with the poor economic expectations for 2016 and beyond, highlights the crucial role that UIF plays in just keeping the unemployed alive.
Delay in Tabling the Bill at Parliament
The Bill was previously discussed at NEDLAC where substantial agreements were reached and has our broad support. However, we object to the inexplicable delay in the Bill being brought to Parliament, as the NEDLAC negotiations were completed as far back as 2013. Initially in the NEDLAC process Labour had called for a more comprehensive review of the UIA in order to address a number of workers’ outstanding concerns, including that of denying UIF benefits for workers who have resigned.
However the Department of Labour provided an assurance that there would be a review through a second-round process that would be implemented within 18 months of the enactment of the Bill. They also indicated that they intended the Bill to be passed in early 2014 in order to provide urgent relief within the context of rising unemployment, particularly of a prolonged nature.