Numsa members strike. Picture: PUXLEY MAKGATHO
Numsa members strike. Picture: PUXLEY MAKGATHO

THE National Union of Metalworkers of SA (Numsa) agrees with the Congress of South African Trade Unions (Cosatu) that unemployment insurance benefits should be extended to those who resign from their jobs without alternative work, as well as to seasonal, contract and informal sector workers.

The union made the call in its submission to the public hearings on the Unemployment Insurance Amendment Bill organised by Parliament’s labour committee. It has urged the committee to insert these categories of vulnerable workers in the bill as beneficiaries of the Unemployment Insurance Fund (UIF), in order to expand its redistributive effect.

The bill aims to extend the period of benefits from eight months to 12 months and to include public-sector workers and people on learnerships, within the beneficiary net.

Numsa’s parliamentary officer, Prakashnee Govender, said in the union’s submission that the government had reneged on its promise to include people who resigned from their jobs, often to look after elderly or ill relatives, or because of constructive dismissal.

She criticised the Department of Labour’s long delay in tabling the bill in Parliament, noting that it had been completed by the National Economic Development and Labour Council (Nedlac) in mid-2013. "This has had the knock-on effect of delaying other further reviews of the Unemployment Insurance Act that had been agreed to as part of the Nedlac process," Ms Govender said.

She said the proposed amendments in the bill were based on an actuarial study that did not look at the effect of extending benefits to those who resigned from employment.

Labour finally agreed to a limited bill on the basis of assurances by the government that a second round of amendments were possible. The Nedlac constituencies also agreed to initiate a review within 18 months after the implementation of the first round of amendments as reflected in the bill.

Ms Govender also called for the bill to address the administrative obstacles preventing asylum seekers from claiming unemployment benefits, such as the refusal of the Department of Home Affairs to issue identity numbers. She urged the committee to delete a clause that would exclude women who terminate their pregnancies as beneficiaries.