Business organisation Business Unity South Africa (Busa) has withdrawn from the Unemployment Insurance Fund (UIF) structures at the National Economic Development and Labour Council (Nedlac) and removed its representatives from the UIF board.
“This step is essential to safeguard the reputation of our representatives, uphold sound governance principles and send an unequivocal message that the current situation is unsustainable,” Busa says in a media release.
The decision follows six years of engagement, repeated warnings of maladministration and ongoing efforts to support reform for the benefit of workers, employers and the stability of South Africa’s labour market, it adds.
Regrettably, the organisation says, these efforts have not yielded the desired results.
Since 2020, Busa says, organised business and organised labour have participated in multiple processes aimed at reforming the UIF, noting that detailed proposals have been submitted, addressing governance, operational effectiveness, service delivery and the need to place contributors at the centre of the system.
