4 July 2006
The Department of Labour has issued an ultimatum to its employees, who
earlier today, 4 July, embarked on an unprotected strike, to resume work or
face disciplinary action.
The staff members of the Compensation Fund and the Unemployment Insurance
Fund all members of the Public Servants Association (PSA) have downed tools
over the Departmentâs decision to phase out incentive bonus scheme at the two
institutions.
Labour Director-General, Vanguard Mkosana, today warned that since the
strike action was unlawful and contravening the provisions of the Labour
Relations Act (LRA) (section 64 (1) (a) or (b)), the Department would have to
invoke appropriate measures as outlined in the applicable prescripts should the
protesters fail to heed the warning.
âThe Department reserves the right to utilise further remedies available to
it in terms of section 68 of the (LRA),â Dr Mkosana said.
The decision to do away with the bonus system was taken three years ago
after management felt the system was affecting the quality of work.
Dr Mkosana said the decision was properly communicated to staff members and
their representative unions and that no objections were raised.
âWe stopped this bonus system after realising that there was more paper
pushing than the processing of claims.
âIt was decided at a general staff meeting on 24 February that no South
African of a living conscience would continue to enjoy a bonus for paper
pushing while claimants suffer due to delays in processing their claims,â Dr
Mkosana said.
Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Issued by: Department of Labour
4 July 2006
