M Mdladlana at visit to UIF

9 March 2006

The financial performance and figures from the database of the Unemployment
Insurance Fund (UIF) confirms that employment is rising in the country,
Minister of Labour Membathisi Mdladlana has said.

Speaking during his official visit to the UIF office today, he said the
records of the fund showed that as at the end of January 2006, more than 7.1
million workers in both the domestic and commercial sector were registered with
the fund compared to just under 6.6 million at the same time last year.

“According to our records more than half a million more workers were
registered with the fund between January 2005 and January 2006. The majority of
these new registrations are new entrants in the labour market, while the rest
are as a result of more employers now complying with the legislation to
register workers,” Labour Minister said.

“The UIF’s financial reserves, which now stand at more than R13 billion,
further prove that employment is rising. The reserves are invested with the
Public Investment Corporation,” he further clarified.

The Minister added that the good news to these workers was that they need
not panic with regard to the future of the fund as the actuarial valuation of
the fund in terms of the legislation had in fact concluded that the fund was in
a sound financial position on a cash flow basis for the next 10 years.

Meanwhile, 100 percent of the UIF's payments are now been done
electronically.

This follows the launch of Electronic Fund Transfers (EFT) in May last year.
Through this innovation UIF monies are being paid directly into beneficiaries’
bank accounts.

Minister Mdladlana has expressed satisfaction with the progress made to
date.

“Our provinces are now 100 percent EFT and this is a good sign in terms of
service delivery. We are now more effective, efficient and economic. The
waiting period has been significantly reduced and the turn around time is
faster since the introduction of electronic banking system,” said the
Minister.

He said between April 2005 and January 2006 more than R2 billion was paid to
the approximately 1.7 million workers, who sought assistance from the fund.

“The feedback we are receiving from our clients is positive. Our clients
have congratulated the Department of Labour for finally dealing successfully
with long queues which have in the past been a thorn in the flesh,” the
Minister added.

He said the use of cheques and cash as a method of payments were proving too
costly for the fund.

“Electronic banking system has brought with it huge savings for the fund.
Since the introduction of this new system in May last year, the fund has
realised savings of more than R16 million in bank charges, printing and
stationery costs,” Minister Mdladlana further announced.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
9 March 2006
Source: Department of Labour (http://www.labour.gov.za/)