Rowan Callaghan
THE Unemployment Insurance Fund (UIF), which has helped over half-a-million people and paid out over R1-billion so far this year, is to begin improving its service immediately.
The steps are the first in a range of changes it will introduce to improve its public image.
The Department of Labour reports that so far this year the fund has helped 538 418 applicants and made 1 872 164 individual payments.
The average payout has been R2 483 (per application) as it shelled out around R1,3-billion in payments.
The fund’s reserves, which are often the cause of much concern and speculation, were R245-million by the end of September.
Shadrack Mkhonto, commissioner of the UIF, said that should unemployment increase drastically, the reserves would sustain the fund for at least one and a half months before they would need state help.
According to Mkhonto, one of the critical short-term problems is the decline in contributions from employers. Mkhonto said that in this area the fund administrators were criticised for their collection methods which they would change by “improving the administration policies” or the way the fund conducts business.
He also said that present staff shortages worsened the situation. Other areas of concern included improving the fund’s administration and attitudes of the staff. “There is also a need to co-ordinate activities between different ministries,” Mkhonto said.
This would eliminate the problem of people receiving dual payments from different government departments.
Other concerns are collaboration with other organisations and the accessibility of the fund.
“The UIF is still structured along apartheid lines. The offices are in traditionally white areas. Most people need access to the services of the fund,” Mkhonto said.
He also said that organisations like Nedlac should be invited to contribute to the fund’s restructuring.