Minister of Employment and Labour, Thulas Nxesi, has said his department is currently involved in discussions that aim to find funding to assist those workers who have been impacted by lockdown level 4.
In a media briefing this week, Nxesi said that the Unemployment Insurance Fund (UIF) has already paid out an estimated R60 billion to over 5 million employees who have been laid off, to assist them, their families and businesses as well as communities.
Says Nxesi: “Already, there have been calls for the Department, through the UIF, to consider re-opening the Temporary Employer/Employee Relief Scheme (TERS) for the industries worst affected by the lockdown.
“As we have always indicated, UIF has been there when the country needed it the most. All of this was done to support the country and ensure that the lockdown does not lead to mass hunger as workers were denied the chance of making a living.
“Equally, we have a fiduciary responsibility to ensure the financial viability of the UIF in order to meet payment obligations.”
The Minister said that the management at the UIF has been in talks with their actuaries to find money that can be made available to those affected by lockdown level 4.
“From the side of the UIF, we believe we will be able to afford to support laid-off workers in sectors which have been closed by the government, in particular the alcohol industry, over the 14-day lockdown,” said Nxesi.
The TERS scheme was originally intended to assist those whose industries were affected by the Disaster Management Act and lockdown regulations, but it has become a form of income support to those who have either lost their income entirely or are earning less due to lockdowns.