‘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”.

mthobisi.nozulela@iol.co.za

IOL Business


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/

COSATU march to SA Reserve Bank in Pretoria over ‘high cost of living’

The Reserve Bank recently increased interest rates by 25 basis points, raising the repo rate to 7% and the prime to 10.5%.

Members of unions affiliated to the Congress of SA Trade Unions (COSATU) marched to the offices of the South African Reserve Bank in Pretoria on Friday. Photo: Warren Mabona

More than 200 members of unions affiliated to the Congress of SA Trade Unions (COSATU) marched to the offices of the South African Reserve Bank (SARB) in Pretoria on Friday to protest about the high cost of living and unemployment, among other concerns.

This follows a recent decision by the Reserve Bank to increase interest rates by 25 basis points, raising the repo rate to 7% and prime to 10.5%.

Gauteng chairperson Amos Monyela told GroundUp that workers were battling with the high cost of living. “We want the SARB to slow down and not increase interest rates,” said Monyela. “The price of food has gone up since the start of the war between the US and Iran. We also want the Competition Commission to work effectively against unnecessary increases of essential grocery items.”

Provincial secretary Louisah Modikwe said the union handed memorandums to the departments of health, employment and labour, transport, education, and water and sanitation.

Modikwe, reading out the memorandum, said workers are increasingly forced to choose between buying food, paying transport costs, servicing debt, accessing health care or providing quality education for their children.

“This is not only an economic crisis, but also a crisis of human dignity and social justice. The rising cost of food, electricity, transport, fuel, education, healthcare and basic services have become unbearable for workers and their families. This march represents a collective demand for urgent interventions to protect workers, the poor and the unemployed from economic collapse and social devastation.”

Other demands called for: government intervention to regulate excessive food price increases; lower fuel prices, public transport subsidies, and a comprehensive job creation programme.

The Chief Operating Officer of SARB Khutjo Mabetwa accepted the memorandum and promised to give it to the relevant officials.


Source: https://groundup.org.za/article/cosatu-march-to-sa-reserve-bank-in-pretoria-over-unemployment/

Labour unions urge workers to shun anti-migrant protests

Labour unions urge workers to shun anti-migrant protests

Photo by Reuters

South Africa‘s biggest labour unions on Wednesday urged workers not to participate in anti-immigrant protests that have seized the country, and said they could face consequences if they skip work to attend.

South Africa is on edge ahead of a June 30 deadline which anti-immigrant groups have given for all undocumented foreigners to leave the country. Protests and potential civil unrest are expected, after weeks of sometimes violent xenophobic attacks.

Four major unions including the Congress of South African Trade Unions (COSATU), which represents around 2-million people, said in a statement that workers would not be protected if they do not go to work on June 30.

“We urge workers to report for duty and not place their employment at risk,” they said.

The unions echoed President Cyril Ramaphosa‘s call on Tuesday not to scapegoat migrants for South Africa‘s problems.

“Removing foreign nationals from workplaces, communities or public spaces will not reopen factories, repair municipalities, strengthen public healthcare or create sustainable jobs,” said the unions COSATUFEDUSASAFTU and NACTU.

Africa’s largest economy has more job opportunities than many other African countries and has long attracted large numbers of foreign workers. Some politicians have seized on the issue in recent months to blame such migrants for widespread poverty and crime.

South African media outlets reported on Wednesday that clashes had erupted between police and thousands of Malawians awaiting repatriation in the coastal city of Durban. Police fired stun grenades and teargas after a crowd became agitated, said News24.

Malawi said earlier in the week that 10 000 of its nationals were in distress and hoping to return from South Africa. While the country has been organising buses to bring them home, it put out a public call for donations to assist with the effort.

“Government is resolute in its commitment to bring home every Malawian who wishes to return from South Africa,” the government said.

“However… the scale and urgency of the operation have created unprecedented financial, logistical, and humanitarian demands.”

Other countries including GhanaNigeria and Mozambique have also repatriated citizens due to safety concerns.


Source: https://www.polity.org.za/article/labour-unions-urge-workers-to-shun-anti-migrant-protests-2026-06-17

Inflation jumps to two-year high as fuel costs squeeze consumers

Inflation jumps to two-year high as fuel costs squeeze consumers

South Africa’s annual consumer inflation rate climbed to 4.5% in May from 4.0% in April, reaching its highest level since July 2024 and placing renewed pressure on already strained household budgets.

According to Statistics South Africa, the surge was driven largely by fuel costs, with the fuel index rising by 14.3% in May and recording an annual increase of 28.7%. Petrol prices were up 24.8% year-on-year, while diesel costs soared by 53.8%.

The increase has sparked concern among the labour federation COSATU, which warned that workers are bearing the brunt of rising living costs.

“Workers cannot afford to see a rise in inflation, especially over such a short period of time, given that most workers are paid a pittance and not a living wage by their employers,” read the COSATU’s statement.

COSATU added that the inflation spike is “bleeding workers who are already drowning in debt, borrowing at unsustainable levels, simply to buy food and electricity and service other debt”.

While food inflation continued to ease, falling to 1.9% from 2.9% in April, consumers still faced higher prices in several categories, including dairy products, tea and household staples. Electricity and municipal charges also remained significant contributors to inflationary pressure. 

The South African Reserve Bank’s Monetary Policy Committee is scheduled to meet on 23 July, following a 25-basis-point increase in the repo rate to 7% last month.

COSATU urged policymakers to avoid further rate hikes, arguing that the current inflation surge is fuel-driven and not caused by domestic demand. It also called for fuel levy relief and measures to shield workers and grant recipients from rising costs.

“Similarly, Eskom must be assisted to reduce the increasingly unaffordable price of electricity… If inflation continues to increase, government must table a supplementary budget amendment bill to cushion Social and SRD Grant recipients from inflation.”

READ MORE: COSATU notes with deep concern the rise in CPI to 4.5%


Source: https://smilefm.co.za/inflation-jumps-to-two-year-high-as-fuel-costs-squeeze-consumers/

COSATU Takes Cost of Living Fight to Parliament

cosatu

The Congress of South African Trade Unions (COSATU) in the Western Cape will lead a mass march to Parliament and the City of Cape Town on Friday, 19 June 2026, calling for urgent action to address the growing cost-of-living crisis affecting workers and poor communities.

The march will begin at Hanover Street at 10:00, where COSATU members, community organisations and supporters are expected to gather before handing over memorandums outlining their demands.

 

COSATU Western Cape Provincial Secretary Malvern de Bruyn says rising prices of food, electricity, water, fuel and transport, coupled with stagnant wages, are placing immense pressure on working-class households.

“Workers and communities across South Africa, and particularly in the Western Cape, are facing a deepening cost-of-living crisis. Households have been forced into a debt spiral as the prices of basic goods and services continue to rise while wages fail to keep pace with worsening economic conditions. Research indicates that consumers are taking home approximately 47% less in real terms than they did a decade ago, while the costs of essential services such as electricity, water, food and transport have increased dramatically. Working-class families are being squeezed from all sides and are struggling to meet their daily needs.”

Among the federation’s demands are lower electricity and water tariffs, reduced fuel and food prices, increases in social grants, stronger enforcement of the National Minimum Wage, and the introduction of a Universal Basic Income Grant.

“The time has come for workers and communities to unite and demand decisive action to address the cost-of-living crisis. Together, we can build a society where all people can live with dignity and social security.”

COSATU has called on workers and communities across the province to join the protected march, saying collective action is needed to push for economic relief and social justice.


Source: https://smilefm.co.za/cosatu-takes-cost-of-living-fight-to-parliament/