DA raises red flag over minister's mandate in UIF bill

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Earlier this month, the tabling of the Unemployment Insurance Amendment Bill 2015 and its adoption appeared imminent, but the Democratic Alliance (DA) is now taking issue with a clause that empowers the labour minister to regulate the size and length of benefit payments.

The primary intent of the bill is to extend the scope of maternity benefits and lengthen unemployment benefits from eight to 12 months. This has won wide support - including from the DA.

DA labour spokesman Ian Ollis said last week the party had made submissions to amend a clause entitling the minister to use regulation to vary the payment period and income-replacement rate.

The income-replacement rate determines the percentage of previous income that is to be paid in benefits, working on a sliding scale that partly closes the gap between higher and lower wage earners.

Ollis has consistently criticised Labour Minister Mildred Oliphant's alleged history of lack of accountability to Parliament, pointing to her belief that "she is not accountable to Parliament".

"We are concerned the minister will govern by regulation. Rather than by bringing bills to Parliament, instead a set of regulations are published, which changes the impact of an act," Ollis said.

The amendments ensure that before any regulations are implemented, they first be put to the National Economic Development and Labour Council (Nedlac). But Ollis said while the council was important, it ultimately only had advisory power.

Congress of South African Trade Unions (Cosatu) parliamentary representative Matthew Parks said last week the federation did not take issue with the clause allowing for regulation.

Rather, its concerns lay with further delay to the bill, especially the expansion of benefits.

On Monday, Labour Department spokesman Sithembele Tshwete said: "We can't debate the bill in the media."

Tshwete said the DA should raise its concerns at the National Council of Provinces, which will meet at a date determined by Parliament. He dismissed claims that Oliphant was not accountable to Parliament as "irrelevant".

The current round of amendments date back to 2013, while the size of the growing surplus has prompted some debate on its use.

The fund has won praise for its financial integrity, receiving twice as much as it pays out.

Fund commissioner Boas Seruwe said this month the surplus was "because of our investment strategy and operational model".

Nedlac discussions continue regarding the expansion of the scope of beneficiaries to possibly include, among others, informal sector workers and seasonal workers. These categories may be included by the end of the year.

Source: Business Day via I-Net Bridge