COSATU said the UIF system has completely collapsed.
Job hunting and unemployment. Picture: Pixabay
Business and labour unions have raised the alarm that the Unemployment Insurance Fund (UIF) system has collapsed and are demanding direct intervention from the Presidency.
Business Unity South Africa (BUSA) formally withdrew its representatives from all UIF structures and the National Economic Development and Labour Council (NEDLAC), citing years of unaddressed maladministration.
RELATED: BUSA withdraws from UIF structures because ‘underlying dysfunction’ not being addressed
Major unions, including the Congress of South African Trade Unions (COSATU), have jointly requested presidential intervention.
The union is demanding competent capacity to stabilise the funds and cancel the appointment of the acting UIF commissioner, Thulani Tshefuta.
COSATU Parliamentary Coordinator Matthew Parks described it as “a systematic failure”.
Play audio: Business and labour raising alarm – collapsing of UIF system
He explained that while the fund’s mandate is to provide financial relief to unemployed workers, those on maternity or parental leave, or those injured or deceased on the job, the system is plagued by inefficiencies, corruption, and a lack of transparency.
“When employees register the workers, they struggle with the IT systems. When workers try to apply, they also struggle.
“You go to all the labour centres across the country, and you’ll find queues stretching hundreds of people long. Workers might have to wait three or four days to be assisted.
“The systems are frequently offline. And workers can wait weeks, months, and even years to receive their UIF benefits.”
RELATED: You may be sending your UIF claim to a dead website
He added that there have also been cases where officials have submitted fraudulent claims and pocketed the money themselves.
“There is a real crisis, and workers have the right to be irritated and angry because it’s indeed their money and it’s there to assist workers in the moment of need.”
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Source: https://www.ewn.co.za/2026/07/10/business-unions-call-for-presidency-to-intervene-in-uif-crisis