The South African Federation of Trade Unions (SAFTU) 𝗶𝘀 𝗲𝘅𝘁𝗿𝗲𝗺𝗲𝗹𝘆 𝘄𝗼𝗿𝗿𝗶𝗲𝗱 𝘁𝗵𝗮𝘁 𝗥𝟮𝟯 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗨𝗻𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗙𝘂𝗻𝗱 (𝗨𝗜𝗙) 𝗶𝘀 𝗯𝗲𝗶𝗻𝗴 𝗰𝗼𝗺𝗺𝗶𝘁𝘁𝗲𝗱 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝘀𝗲𝗱 𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁-𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝘀𝗰𝗵𝗲𝗺𝗲𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝘁𝗵𝗲 𝗟𝗮𝗯𝗼𝘂𝗿 𝗔𝗰𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗲 (𝗟𝗔𝗣).
Instead of spending the money on projects that enrich the parasitic bourgeois without benefiting the contributing workers – the people on whose name the fund was initially created – the benefit pay-outs to workers must increase.𝗪𝗲 𝗽𝗿𝗼𝗽𝗼𝘀𝗲 𝘁𝗵𝗲 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝗽𝗮𝘆 𝗿𝗮𝘁𝗲 𝗳𝗼𝗿 𝘂𝗻𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝘁𝗼 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗳𝗿𝗼𝗺 𝗮 𝗺𝗮𝘅𝗶𝗺𝘂𝗺 𝗼𝗳 𝟱𝟴% 𝘁𝗼 𝟳𝟬% 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗺𝗮𝘁𝗲𝗿𝗻𝗶𝘁𝘆 𝗹𝗲𝗮𝘃𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝘁𝗼 𝟵𝟬%. 𝗧𝗵𝗲 𝗺𝗼𝗻𝘁𝗵𝗹𝘆 𝗶𝗻𝗰𝗼𝗺𝗲 𝗰𝗮𝗽 𝘀𝗵𝗼𝘂𝗹𝗱 𝗮𝗹𝘀𝗼 𝗺𝗼𝘃𝗲 𝗳𝗿𝗼𝗺 𝗥𝟭𝟳 𝟳𝟭𝟮 𝘁𝗼 𝗥𝟮𝟱 𝟬𝟬𝟬
𝗢𝘂𝗿 𝗦𝗸𝗲𝗽𝘁𝗶𝗰𝗶𝘀𝗺
Our skepticism is informed by the mismanagement of the UIF funds recently, with the Minister of Employment and Labour, Thulas Nxesi, fingered in allegations of soliciting bribes from companies doing business with the department. In November 2023 he was accused of soliciting a bribe from Mthunzi Mdwaba in an LA Programme involving R5 billion. Though he has denied this, the allegation leaves us with doubts.
He was again alleged to have influenced the irregular awarding of an LAP tender involving R3 billion by a former employee in an affidavit. The two separate sets of allegations, including an allegation under oath, leave us to speculatively conclude that the current LA programmes could be awarded based on corruption and might not create the envisioned job opportunities.
Further, there is a possibility that these LA programmes are being implemented now because Minister Nxesi and his cronies want to raise electioneering funds for the ruling party. In addition, the dual possibility is that few job opportunities that will be created through this programme are an electioneering ploy, especially if you consider that the span of those jobs will last between 12 and 36 months. This indicates that these opportunities will not be sustainable.
𝗨𝗜𝗙 𝘀𝘂𝗿𝗽𝗹𝘂𝘀𝗲𝘀 𝗮𝗻𝗱 𝗟𝗔𝗣
𝗦𝗔𝗙𝗧𝗨 𝗶𝘀 𝗻𝗼𝘁 𝗼𝗽𝗽𝗼𝘀𝗲𝗱 𝗶𝗻 𝗽𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝘁𝗼 𝘁𝗵𝗲 𝘂𝘀𝗲 𝗼𝗳 𝗨𝗜𝗙 𝘀𝘂𝗿𝗽𝗹𝘂𝘀𝗲𝘀 𝗳𝗼𝗿 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝗮𝗹 𝗽𝘂𝗿𝗽𝗼𝘀𝗲𝘀. In fact, we have contended that the UIF surpluses must be invested in infrastructural developments including helping the government set up public companies that will lead to economic growth, employment creation and provide affordable (if not free) goods and services to the people.
The main issue with the LA programme is the attempt to turn the Department of Employment and Labour into a job-creating department, instead of focusing on regulating the labour market, ensuring compliance with labour regulations from employers, and safeguarding the UIF funds. It is no surprise therefore, that, the projects initiated through this programme seem to be unsustainable, feeding a group of parasitic business enterprises.
Our contention is that it is public service, public enterprises, economic development, small and medium enterprises, and trade and industry ministries that should lead the job-creating and economic growth initiatives, not the Department of Employment and Labour.
𝗧𝗵𝗲 𝗶𝗻𝗴𝗿𝗲𝗱𝗶𝗲𝗻𝘁 𝗳𝗼𝗿 𝘂𝗻𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗷𝗼𝗯 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗰𝗿𝗲𝗮𝘁𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲𝘀𝗲 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 𝗶𝘀 𝗳𝗼𝘂𝗻𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘀𝘁 𝗺𝗼𝗱𝗲 𝗼𝗳 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗶𝘁 𝗶𝘀 𝗼𝗿𝗴𝗮𝗻𝗶𝘀𝗲𝗱. 𝗜𝘁 𝗶𝘀 𝗼𝗿𝗴𝗮𝗻𝗶𝘀𝗲𝗱 𝗽𝗿𝗶𝗺𝗮𝗿𝗶𝗹𝘆 𝗮𝗻𝗱 𝘀𝗼𝗹𝗲𝗹𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗲𝘅𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗽𝗿𝗼𝗳𝗶𝘁𝘀, 𝗻𝗼𝘁 𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻. Hence, the main chunk of the money churned through the programme will go to commissions and profits of these business enterprises. The only entities that could use the funding primarily for job creation are the public sector. Private entities who will be the implementing agents will be concerned with making more money than job creation.