Organised labour urges Ramaphosa to intervene as UIF and Compensation Fund crisis deepens

“While workers are not receiving their income leave on time, if at all, the high cost of living continues to rise,” says organised labour.

Organised labour federations comprising COSATU, FEDUSA, SAFTU and NACTU have called for urgent government intervention at the Unemployment Insurance Fund (UIF) and the Compensation Fund, warning that persistent administrative failures are leaving thousands of workers without critical financial support when they need it most.

Speaking during a media briefing on Wednesday (17 June), organised labour convenor Gerald Twala painted a bleak picture of the state of the two social security institutions. He said delays in processing claims, recurring system failures and allegations of corruption have undermined public confidence and placed vulnerable workers under immense strain.

“While workers are not receiving their income leave on time, if at all, the high cost of living continues to rise. Organised labour demands that workers everywhere share an interest in decent wages, safe workplaces, functioning public institutions, democratic governance and economies that serve the majority,” said Twala.

The UIF provides temporary income relief to workers who lose their jobs or are unable to work due to specific circumstances. The Compensation Fund is responsible for compensating employees injured or disabled on duty as well as the dependants of workers who die as a result of workplace accidents or occupational diseases.

Amid growing concerns over intimidation and disruptions in the workplace, organised labour has appealed to workers not to jeopardise their jobs and has urged government to act swiftly against unlawful activities threatening livelihoods and essential services.

“We urge workers to report for duty and not place their employment at risk. Government must communicate this clearly and act decisively against intimidation, unlawful shutdowns, attacks on workers, violence and threats to critical infrastructure,” Twala added.

According to Twala, the Hawks and the Special Investigating Unit (SIU) should be deployed to examine claims of misconduct and ensure accountability where public funds may have been misused.

The demand for investigations follows recent developments involving the UIF. Earlier this month, President Cyril Ramaphosa authorised an SIU probe into certain UIF training contracts following allegations of maladministration and irregularities. The investigation is expected to examine procurement processes and determine whether public funds were spent lawfully.

On the ‘national shutdown’

As many South Africans grapple with economic uncertainty and unemployment, organised labour has warned workers against taking actions that could jeopardise their livelihoods, saying the planned 30 June “national shutdown” lacks formal labour movement support.

“We also note calls for national action on 30 June. This action has not been called by the recognised labour federations and does not constitute a protected strike. Workers who stay away from work will not enjoy the protections afforded to participants in a protected strike,” Twala concluded.

For many workers, the debate extends beyond governance and policy. Delayed UIF payments can mean going without food, rent or transport money after losing a job, while slow compensation claims can leave injured employees and their families without income during lengthy recovery periods.

As pressure mounts on government to address the growing concerns, attention is likely to focus on whether ongoing reforms and investigations will be enough to restore confidence in two institutions that play a crucial role in South Africa’s social protection system.


Source: https://currentaffairsza.com/2026/06/17/organised-labour-urges-ramaphosa-to-intervene-as-uif-and-compensation-fund-crisis-deepens/

COSATU KZN to hold mass Durban picket against rising living costs

COSATU KZN is set to lead a National Day of Action to address the escalating cost of living, urging workers and communities to unite against financial pressures affecting households across the province.

COSATU KZN is set to lead a National Day of Action to address the escalating cost of living, urging workers and communities to unite against financial pressures affecting households across the province. Image: Ayanda Ndamane/ Independent Newspapers

The Congress of South African Trade Unions (COSATU) in KwaZulu-Natal has announced plans for mass mobilisation across the province as part of a National Day of Action against the escalating cost of living, saying workers and poor households can no longer absorb the impact of rising prices.

The announcement follows a meeting of the federation’s Provincial Executive Committee (PEC) on 11 June 2026, where political, organisational and socio-economic developments were discussed, with the worsening cost of living crisis emerging as a key concern.

The planned action comes during the commemoration of the 50th anniversary of the June 16 Uprising.

As part of the campaign, COSATU KwaZulu-Natal said demonstrations, pickets and mobilisation activities would take place across districts and local structures.

The main provincial programme is scheduled for Friday, 19 June 2026, at 10am at the Marine Building government offices in Durban.

In its statement, COSATU KZN linked current socio-economic conditions to the broader struggle for social justice and economic transformation, saying the aspirations of the 1976 generation remain incomplete.

The federation said workers, unemployed people, pensioners, grant recipients and poor households continued to face increasing financial pressure as fuel price hikes pushed up the cost of food, transport, electricity, housing, healthcare and education.

COSATU argued that the impact of rising living costs had extended beyond economics and was increasingly becoming a social and psychosocial challenge.

“Workers are experiencing increasing levels of stress, anxiety and mental exhaustion as they struggle to provide for their families under worsening conditions,” the federation said.

The PEC also expressed concern over what it described as a broader socio-economic crisis in South Africa characterised by unemployment, poverty, inequality, weakening public services and governance failures.

According to the federation, these conditions risk undermining confidence in democratic institutions and creating opportunities for populist and reactionary politics.

COSATU said trade unions must continue defending workers’ livelihoods and called for stronger organisation and unity within progressive movements.

Among the interventions proposed by the federation are measures to reduce the impact of fuel price increases, stabilise food prices, expand affordable public transport, protect wages against inflation, accelerate job creation programmes, strengthen social protection and improve public services.

Meanwhile South Africa’s annual inflation rate accelerated to 4.5% in May from 4% in April, pushing consumer price growth close to its highest level in almost 22 months. The inflation surge was largely driven by increases in fuel prices.

Statistics South Africa said consumer prices increased by 0.7% month-on-month in May, with transport and housing and utilities emerging as the biggest contributors to headline inflation.

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Source: https://themercury.co.za/news/2026-06-17-cosatu-kzn-to-hold-mass-durban-picket-against-rising-living-costs/

Vavi says migrants are being used as scapegoats for SA’s economic problems

Zwelinzima Vavi

SAFTU General Secretary Zwelinzima Vavi says African migrants should not be blamed for South Africa’s broader socio-economic challenges, warning that rising hostility in communities is fuelling xenophobic tensions.

Vavi was speaking in an interview on SABC following a joint media briefing by organised labour federations COSATU, FEDUSA, SAFTU, and NACTU held at NEDLAC headquarters in Johannesburg on Wednesday.

He said organised labour was concerned that South Africa’s international reputation was being damaged by rising anti-migrant sentiment, adding that labour federations had received feedback from global bodies on the issue.

“We are worried that we are being painted in a very terrible light at the international level,” Vavi said.

He added that some feedback from the International Labour Organisation suggested concerns about xenophobic attacks targeting African workers and a perceived silence from South African labour movements.

Vavi said this had contributed to labour federations deciding to speak “in one voice”, warning that the situation was deteriorating.

He said there was a growing disconnect between official language on migration and what was happening in communities, where migrants were increasingly being targeted.

While public discourse referred to undocumented or “illegal foreigners,” Vavi said the language used on the ground was often more extreme.

“In the streets they are saying we want to clean South Africa, and then everyone must go,” he said.

Vavi warned that such rhetoric risked normalising violence, drawing comparisons with past mass violence on the continent.

“This type of language reminds us exactly of what happened in Rwanda, when people were referred to as cockroaches,” he said.

He said there was evidence of “double speak” around migration, where official messaging differed from actions in communities and on social media.

“We are not opposed to migration. We are not xenophobic. But we are opposed to uncontrolled illegal immigration,” Vavi said, adding that this was the “public sanitised version”.

Vavi said migrants were increasingly being targeted in some communities, including through violence and intimidation, and that people were often attacked based on appearance or language.

“When they’re beating up people in the streets, they beat up anybody that looks darker,” he said.

He said economic hardship, unemployment, and inequality were driving anger in communities, which in turn was fuelling resentment towards foreign nationals.

Vavi said migrants were being used as a “bogeyman” for deeper structural problems.

“They have to find somebody to blame,” he said.

He also warned about mobilisation around a 30 June deadline circulating in some communities, saying organised labour had not called for any strike or protest action and urging workers not to participate in unlawful activities.

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Source: https://africannewsagency.com/vavi-says-migrants-are-being-used-as-scapegoats-for-sas-economic-problems/

‘System failure’: Unions blast UIF and Compensation Fund as workers left waiting for benefits

South Africa’s main labour federations COSATU, SAFTU, FEDUSA and NACTU have called on President Cyril Ramaphosa to urgently intervene in the country’s Unemployment Insurance Fund (UIF) and Compensation Fund, warning of deepening failures in both institutions.

This comes after recent reports revealed the Special Investigating Unit (SIU) has uncovered irregularities linked to parts of the UIF’s COVID-19 Temporary Employer-Employee Relief Scheme, including fraudulent and improper claims processed during the pandemic period.

In a joint statement released to the media, the unions said the revelations confirm long-standing concerns about weak controls and governance failures within the UIF.

“In addition, the long queues and inefficiencies the UIF is notorious for persist unabated,” the unions said.

“Young women speak of the indecency of trying to avoid exposing themselves while breastfeeding their newborns, all the while standing in snaking queues outside labour centres, waiting for their chance to apply for maternity benefits, only to be told the system is offline sometimes late in the afternoon when they finally reach the front of the queue”.

The unions also said that administrative and system failures at the UIF continue to prevent many workers from accessing benefits they are legally entitled to.

They argued that the ongoing breakdown of the uFiling system has worsened the situation, forcing claimants to rely on physical visits to labour offices, where they often face repeated delays.

The unions also slammed the Compensation Fund, saying injured workers and dependants of deceased employees are facing long delays in receiving payments due to backlogs, weak administration and ongoing system failures.

“The crises in these funds cannot be sanitised any longer while workers are not receiving their income relief on time, if at all, whilst the high cost of living continues to rise. “Organised Labour demands that CF and the UIF should be empowered with the authority to make real changes and improvements and not be merely advisory as they are currently. Additionally, the long overdue amendments to the Compensation for Occupational Injuries and Diseases Act (COIDA) must be expedited to strengthen governance, accountability and oversight”.

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Source: https://www.msn.com/en-za/news/other/system-failure-unions-blast-uif-and-compensation-fund-as-workers-left-waiting-for-benefits/ar-AA25X7tE

Organised labour rejects anti-migrant sentiment, calls for economic reform

organised-labour

Organised Labour has rejected growing anti-migrant sentiment across the country and warned that migrants should not be made to be scapegoats for failures they did not create.

During a media briefing this week, held at the National Economic Development and Labour Council (NEDLAC), COSATU, FEDUSA, SAFTU and NACTU spoke as one, cautioning that removing foreign nationals from workplaces, communities or public spaces will not help South Africa in any way.

“We recognise the deep frustration of millions of South Africans facing unemployment, poverty, inequality, crime and deteriorating public services. These are real and legitimate grievances. However, South Africa’s economic crisis was not created by migrants. It is rooted in economic stagnation, deindustrialisation, mass unemployment, corruption, austerity, weak governance and the failure to build an economy that serves the majority.”

The federations say South Africans’ energy and frustrations must be aimed at the government alone, with demands that they fix the economy, create decent work and rebuild the state.

ALSO READ: Ramaphosa: Migration Not the Cause of South Africa’s Problems

They further expressed concern that the current surge in anti-migrant sentiment and mobilisation appears increasingly coordinated and politically orchestrated.

“Its purpose seems not only to divide the working class and redirect legitimate anger away from the real causes of poverty, unemployment, inequality and collapsing public services, but also to portray South Africa as a nation consumed by xenophobia and prone to barbaric acts of black-on-black violence in order to portray us in the most negative light in eyes of the international community.”

The bodies warn that dangerous rhetoric is sowing seeds of tribalism, chauvinism and conflict among African people, and threatening the unity that workers need to confront exploitation and fight collectively for jobs, decent living conditions and social justice.

“The working class must reject all attempts to divide it along national, ethnic or tribal lines and reaffirm the principle that an injury to one is an injury to all.”

They further state that they are “unequivocally opposed to vigilantism.”

“The enforcement of immigration, labour and criminal laws is the responsibility of the democratic state and its authorised institutions alone. No individual, organisation or self-appointed structure has the right to stop people in the streets, demand identity documents, raid workplaces, close businesses or prevent people from accessing public services.”

The unions say citizens have every right to march, but it cannot become a “licence for intimidation, unlawful detention, forced removals, ethnic profiling or violence.”

“South Africans have seen where this road leads, having lived through the deadly violence of 2008 and subsequent attacks on foreign nationals. We will not allow legitimate public anger to be manipulated into hatred and lawlessness. History has shown the devastating consequences of redirecting socioeconomic grievances against people based on their nationality or origin.”

At the same time, they have confirmed they are firmly opposed to the unlawful employment of undocumented migrants, with calls to investigate and prosecute all employers who exploit vulnerable workers.

The organisations have called on the government to enforce stronger labour inspection, effective border management, and ensure adequate staffing and technology systems to eradicate corruption in the system.

“Organised Labour also condemns all persons who solicit or accept bribes, facilitate illegal entry, issue fraudulent documentation or protect employers who violate the law. Such conduct fuels the crisis, undermines public trust and betrays the many honest public servants who continue to perform their duties under difficult conditions.”

They have also warned workers who stay away from work on 30 June that the proposed mass action is not supported by recognised labour federations and therefore does not constitute a protected strike.

“We urge workers to report for duty and not place their employment at risk. Government must communicate this clearly and act decisively against intimidation, unlawful shutdowns, attacks on workers, violence and threats to critical infrastructure.”


Source: https://smilefm.co.za/organised-labour-rejects-anti-migrant-sentiment-calls-for-economic-reform/