Oversight Report to UIF; Committee Programme

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Employment and Labour

03 February 2021
Chairperson: Ms M Dunjwa (ANC)
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Meeting Summary

The Committee met on a virtual platform to consider Committee minutes from meetings held in November 2020. The Committee also adopted its report on an oversight visit to the Unemployment Insurance Fund (UIF).

In considering its programme for the first term for 2021, Members agreed to call the UIF to explain the non-extension of the Temporary Employer/Employee Relief Scheme (TERS) scheme and for Members to know what the financial sustainability of the Fund is.

 

Meeting report

Adoption of Committee minutes

The Committee adopted the minutes of 4, 13, 18 and 25 November 2020.

Ms C Mkhonto (EFF) made a general comment on the minutes that were just adopted. She expressed that in almost all the minutes, it stated that Members asked for additional information or clarity seeking questions and that they were always promised that information would be furnished to them. She did not recall receiving the information. She asked that the Chairperson’s office assist Members with a system whereby Committee resolutions are kept track of and for there to be due dates for the information requested in the meetings.

The Chairperson acknowledged Ms Mkhonto’s comment and asked if Members had anything to add.

Dr N Nkabane (ANC) added onto Ms Mkhonto’s issue and expressed that if her memory serves her well, then when the information was requested, they received it within about two or three days. To refresh the Committee or as a courtesy, she asked that the Secretariat populate the additional information. She reiterated that from time to time, the office of the Chairperson does ensure that Members receive the information.

The Chairperson suggested that they agree there may be a weakness in terms of the office of the Chairperson in circulating information so as to not delay the meeting. The Chairperson accepted responsibility for it and stated that in the future, they will ensure that when there is information that is requested, there must be a mechanism where Members are reminded of the information that was requested from the previous meeting.

Report of the Portfolio Committee on Employment and Labour on a Joint visit with the Standing Committee on Public Accounts (Scopa) to the Unemployment Insurance Fund (UIF) Head-Quarters

The Chairperson introduced the report as the result of a joint oversight visit to the UIF of the Portfolio Committee on Employment and Labour and Scopa.

The Secretariat took the Committee through the report.

Dr M Cardo (DA) pointed out a correction on point 4.5.a., whereby the Temporary Employer/Employee Relief Scheme (TERS) was referred to as a tax benefit which it is not.

The Chairperson agreed with Dr Cardo’s correction.

Ms Mkhonto moved for adoption of the report.

Mr N Hinana (DA) seconded.

The Chairperson commented that when it comes to oversight visits, she wanted it on record that Mr Bagraim (DA) and Dr Cardo do not attend the visits according to her observations.

Dr Cardo responded that the Chairperson only allowed one Democratic Alliance Member to attend the UIF oversight visit and their party sent Mr Hinana.

The Chairperson responded that they were not going to go into the merits of the matter but reiterated that it had been noted.

The Committee Report was adopted.

Committee First Term 2021 Programme

The Secretariat took the Committee through the programme for the first term of 2021.

Dr Cardo commented that he wrote to the Chairperson last week to summon the UIF before the Committee to explain the non-extension of the TERS scheme. There are many cases of desperate people in the liquor, hospitality and tourism industries who are suffering because TERS has not been extended. There has been avoidant communication on the part of the Minister and the UIF. The UIF suggested a course of action and he asked that the UIF be requested to present those findings to the Committee so that Members can know what the financial sustainability of the Fund is. He asked for feedback from the Chairperson on the request that he sent last week on the matter.

The Chairperson apologised for not acknowledging Dr Cardo’s request and agreed to investigate the issue as the Committee has a right to the information from the Minister. She commented further that there is still a timeframe for people to comment on the two Bills before the Committee. She asked that the Committee agree that they come to an arrangement with the House Chairperson for where they can fit the UIF matter into the schedule bearing in mind that the country is still on adjusted level 3 of the lockdown.

Mr M Nontsele (ANC) moved for the adoption of the programme for the first term as proposed.

Mr S Mdabe (ANC) seconded.

The Chairperson drew the Committee’s attention to the fact that the coming terms are going to be very challenging and asked that the Committee rise to the task because the Committee deals with a number of issues that touch the core of the people, such as the UIF and the Compensation Fund and the Committee will have to look into the legislation because at the end of this administration, the Committee must leave a legacy - although Members are all coming from different political organisations and have different agendas, at the end, they come together as a family. Members must ensure that as much as they differ on their viewpoints, that they have robust engagement but come together as one. She lamented Minister Jackson Mthembu’s passing, especially his being able to bring everyone to understand one another and to move forward.

Mr Mdabe raised the issues of the state being taken to court by unions in relation to the salary increases as well as the unions taking Treasury to court in relation to austerity measures, specifically to the Commission for Conciliation, Mediation and Arbitration (CCMA) because its budget was cut. He suggested the Committee may need to address the issues in one of its meetings.

The Chairperson responded that the first issue is more to do with public service and administration but it also falls under this Committee’s concerns as well when labour matters are so unstable. She proposed that the Office of the House Chair would tell the Committee how best to address the matter.

The meeting was adjourned.

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