BUSA is leaving South Africa’s statutory forum for social dialogue, Nedlac.
Business Unity South Africa (BUSA) has withdrawn from the Unemployment Insurance Fund’s (UIF) governance structures at Nedlac and removed its representatives from the UIF Board, saying it has lost confidence in the fund after six years of unsuccessful reform efforts.
The country’s largest organised business body on Wednesday called on Employment and Labour Minister Nomakhosazana Meth to place the UIF under administration and appoint an independent administrator to stabilise operations, clear claims backlogs and address what it described as persistent governance failures.
The Department of Employment and Labour has previously acknowledged shortcomings in the fund’s administration but maintains it is implementing governance reforms, modernising claims systems and strengthening oversight. It has also defended the UIF’s Labour Activation Programme, saying it is authorised by legislation and supports employment creation.
BUSA also called for a forensic investigation into the legality and appropriateness of all UIF expenditure.
