Today's Labour News

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UIFBL Premium reports that the ANC has outlined what it believes should form the basis of a social pact, which would include using the surpluses of the Unemployment Insurance Fund (UIF) to support Eskom and other developmental causes.  

On Friday, the party released its discussion documents that will lay the basis for talks at its national general council, which is to be held in 2021.  In its paper on the economy, the ANC suggests what contribution each social partner, namely the government, business and labour, could make to help grow the economy.  Among these would be agreement by business and labour “that social security funds could be tapped responsibly to address social and economic needs, in particular to deal with Eskom, promote small business, provide industrial financing, upgrade basic education in poor communities and increase incomes for the working poor.”  The proposal is likely to be very controversial.  The UIF still has R114bn in reserves after having paid out over R52bn to beneficiaries of the Covid-19 Temporary Employer/Employee Relief Scheme (Ters).  For several years, contributions to the fund — a statutory requirement for all employees in the formal economy — have far outstripped benefits paid out, enabling the accumulation of large reserves, most of which are invested on its behalf by the Public Investment Corporation.  In its discussion paper, the ANC is critical of the fact that most of the UIF’s reserves are used to fund JSE-listed companies through investments.

  • Read the full original of the report in the above regard by Carol Paton by BusinessLive (paywall access only)

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