THE South African Federation of Trade Unions (Saftu) is skeptical about government’s plan to use R23 billion from the UIF to create job opportunities.
The labour union said their worry was informed by the mismanagement of the UIF funds recently, with Employment and Labour Minister Thulas Nxesi fingered in allegations of soliciting bribes from companies doing business with the department.
Saftu general secretary Zwelinzima Vavi suggested the scheme could be an election ploy, emphasising the need for sustainable employment solutions.
He claimed that the job creating schemes could be an electioneering stunt by the ANC and alleged that these opportunities were short-term and will not be sustainable.
Vavi said: “There's a possibility that these LA programmes are being implemented now because minister Nxesi and his cronies want to raise electioneering funds for the ruling party.
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“In addition, the dual possibility is that few job opportunities that will be created through this programme are an electioneering ploy, especially if you consider that the span of those jobs will last between 12 and 36 months.”
The department launched the LA programme in Gauteng announced at the weekend that the R23,8 billion national job creation plan will be rolled out over the next couple of weeks to create more than 700 000 employment opportunities throughout the country.
In November 2023, Nxesi was accused of soliciting a bribe from Mthunzi Mdwaba in an LA programme involving R5 billion.
The union clarified that it was not opposed in principle to the use of UIF surpluses for developmental purposes.
Vavi said they have contended that the UIF surpluses must be invested in infrastructural developments including helping the government set up public companies that will lead to economic growth, employment creation and provide affordable (if not free) goods and services to the people.
“Instead of spending the money on projects that enrich the parasitic bourgeois without benefiting the contributing workers, the people on whose name the fund was initially created, the benefit payouts to workers must increase.
“We propose the minimum pay rate for unemployment benefits to increase from a maximum of 58% to 70% and the maternity leave benefit to 90%. The monthly income cap should also move from R17 712 to R25 000,” said Vavi.
