The National Coronavirus Command Council’s abrupt cancellation of the UIF Covid-19 Temporary Employer/ Employee Relief Scheme (Ters) has put President Cyril Ramaphosa in the firing line. Various vested parties, including the DA, B4SA and COSATU, have highlighted that governments top structures are violating their own law where benefits are intended to run for the duration of the National State of Disaster.
The fund was set up in March to cushion the severe economic impact of lockdown, whereby all but essential citizens were instructed to stay at home. In an address last week, the president announced the extension of the National State of Disaster to 15 November 2020, while the scheme was prolonged by a further six months, into 2021.
Speaking to VOC Breakfast on Tuesday, UIF spokesperson Makhosonke Buthelezi explained that applications had in fact closed on 30th October. He stated that there is a backlog of around “363k applications that are already in the system and the employees are still waiting for certain information from the employer.” All those already in the system can expect to be processed.
The reasons for the delay in payments, he said, included a lack of bank verification and ID numbers, while the vast majority are awaiting declarations from their employer. Buthelezi said that at least R51 billion has been spent on the benefit since March.
“We’ve noticed there’s been an increase in terms of the unemployment benefit. There are two ways to do that. Either online via u-Filing (where you) apply by going to labour centre, in which case the employer must fill out the UI19 and UI6 forms,” he said.
These forms can be obtained online via the department of labour website.
Cosatu’s Parliamentary Coordinator Matthew Parks meanwhile described the move as “callous” and “extremely short-sighted”, pointing to previous consensus over the matter.
“We had been having engagements about how we could extend the grant from September onward and our position was that, on the 15 September, the president had publicly committed to extend the (benefit) in conjunction with the Disaster Management Act. That’s also provided in for in writing and by law. At the moment, we are being governed in defiance of the law.
According to Parks, the fund boasts about R114 billion worth of assets and has the capacity to distribute R3-5 billion per month to maintain the benefit. Parks warned that the forfeiting of the benefits could further degrade the declining economy.
“We have done the costing and it’s far cheaper to spend 2-3 months on UIF benefits and save jobs and companies than it is to allow those jobs to go under and (have) the company close. Then you will have to pay those workers 12 months of benefits,” explained Parks.
“It’s a principle issue. If the government prohibits certain types of workers from working, then you have to assist them with some kind of income. They don’t allow people over 60 or those with comorbidities to work for health reasons. They don’t allow certain types of companies to reopen, they don’t allow certain companies to open at full capacity,” he elaborated.
“If you don’t (provide), either you’re (pushing) those people to starvation or crime or they will ignore the regulations and go to work, as you’ve seen at some clubs. What happens then, is that you’ll expose them to health risks and might be contributing to a second wave which will cost the economy a lot more,” he argued.
Cosatu has since requested a meeting with NEDLAC, the Minister of Employment and Labour Thulas Nxesi and the presidency to request Ramaphosa’s direct intervention. The union has questioned governments ability to honour their commitments provided that it has now reneged on a signed agreement.
“This is a worthwhile fight- its critical. You’re talking about people who have no alternative income, yet they have been contributing to UIF- to which government doesn’t contribute a single cent. Its critical for us to get money flowing into the economy to stimulate it and save jobs,” he said.
