The South African Federation of Trade Unions (Saftu) said that it is extremely concerned about the R23 billion that is being used from the Unemployment Insurance fund (UIF) to create schemes for jobless South Africans.
In April, Employment and Labour Minister Thulas Nxesi announced that government would implement a new training for employment and entrepreneurship programme.
Nxesi said that the UIF’s Labour Activation Programme (LAP) will be first launched in Gauteng with the provincial government, and then it would be progressively rolled out during April throughout the country.
He said that the programme would strengthen employment creation in the country.
The hope is that the programmes will provide training for employment and entrepreneurship programmes for around 704,000 unemployed South Africans, with the programme lasting between 12 and 36 months.
“The spread of our implementation nationally will be across every province – with 333 recommended projects to provide training, small enterprise support and employment opportunities to 704,000 unemployed people,” Minister Nxesi said.
An electioneering ploy
Saftu has slammed the programme as they believe the programme’s opportunities and promises are not sustainable.
“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,” Saftu said in a statement.
The union said LAP was an “electioneering ploy” by the governing ANC, rather than an opportunity to create long-lasting jobs for unemployed South Africans.
“There is a possibility that these LAP programmes are being implemented now because Minister Nxesi and his cronies want to raise electioneering funds for the ruling party,” the union said.
“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”.
Saftu calls for infrastructural developments
The union said that is not opposed to using the UIF surplus for developmental purposes, but contended that must be invested in infrastructural developments.
The union said government could set up public companies that will lead to economic growth, employment creation and provide affordable goods and services to South Africans.
Saftu said government should also focus on regulating the labour market, ensuring compliance with labour regulations from employers, and safeguarding the UIF funds.
Their concern is that the UIF surplus could be used for corruptive endeavours
“The projects initiated through this programme seem to be unsustainable, feeding a group of parasitic business enterprises,” it added.
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