UIF lack of access, awareness leaves workers vulnerable, Cosatu warns

The Congress of South African Trade Unions is worried that there is a lack of awareness of the Unemployment Insurance Fund’s benefits among employees who are vulnerable to job losses due to the coronavirus lockdown.

"We asked the department to do an awareness campaign to make people aware of the hotline. We are very concerned that there is not enough [being done] to make sure that employers and workers are aware of the benefits and how to apply for them," the federation’s parliamentary liaison officer, Matthew Parks, said.

Cosatu met with government this past weekend to express its misgivings at the rollout of UIF benefits and their accessibility, with the federation claiming some workers could not apply for benefits online and help centres had too few staff.

The South African Reserve Bank warned last week that as many as 370 000 jobs could be lost this year as a result of the enforced lockdown.

Andrew Levy, Managing director at Andrew Levy Employment, said government’s more than R100 billion surplus in the UIF could soften the blow for employees, but this depended on how long the lockdown and the pandemic would last.

"The issue is simply that the people who will qualify are people who have been in employment and have contributed to the fund. Government has said that they have a surplus in the fund and that the money will come from there. But it won’t last forever," said Levy.

Levy said it would be hard to calculate how many people would need unemployment or salary cover during the lockdown, and that would have to be taken into consideration.

"Remember, there is a R7 500 limit on what can be paid out. UIF pays on a sliding scale. It will never pay people who earn above their formula everything. It is not a dole system. It’s an insurance fund where you and your employer make contributions. It’s not a state grant, in that sense," Levy said.

Levy stressed that this assistance would only apply to those who have been employed and contributed to the fund.

UIF spokespersons committed to respond to Fin24’s questions but did not respond by close of business on Wednesday.