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.
#NEDLAC @NEDLAC_SA Overall Labour Convenor, Gerald Twala is tabling the statement about @UIFBenefits and Compensation Fund’s dysfunctionality and alleged criminality at the joint Federation’s press briefing underway at Rosebank @SAfmRadio @deptoflabour @CCMA_SA pic.twitter.com/8A0KSRBMP4
— @COSATU Today (@_cosatu) June 17, 2026
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.
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