/ 4 July 2006

Striking labour staff given ultimatum

The Department of Labour has issued an ultimatum to its employees, who earlier on Tuesday embarked on an unprotected strike, to resume work or face disciplinary action.

The staff members of the Compensation Fund and the Unemployment Insurance Fund — all members of the Public Servants’ Association (PSA) — have downed tools over the department’s decision to phase out an incentive bonus scheme at the two institutions, the department said in a statement.

Labour director general Vanguard Mkosana warned that since the strike action was unlawful and contravened the provisions of the Labour Relations Act, the department would have to invoke appropriate measures “as outlined in the applicable prescripts should the protesters fail to heed the warning”.

“The department reserves the right to utilise further remedies available to it in terms of Section 68 of the [Act],” Mkosana said.

The decision to do away with the bonus system was taken three years ago after management felt the system was affecting the quality of work, the department added.

Mkosana said the decision was properly communicated to staff members and their representative unions and that no objections were raised.

“We stopped this bonus system after realising that there was more paper pushing than the processing of claims.

“It was decided at a general staff meeting on February 24 that no South African of a living conscience would continue to enjoy a bonus for paper pushing while claimants suffer due to delays in processing their claims,” Mkosana said. — I-Net Bridge