South Africa\u2019s biggest intervention to alleviate the economic impact of the coronavirus outbreak, a R40 billion ($2.2-billion) fund for laid-off workers, is being thwarted by an inability to get money to people, the nation\u2019s biggest labour group said.<\/p>\n
The Unemployment Insurance Fund, the body through which the relief is being channeled, hasn\u2019t done enough to advertise the benefit to employers and workers, said Matthew Parks, the parliamentary coordinator for the Congress of South African Trade Unions. The fund shunned offers of help from the private sector, he said.<\/p>\n
\u201cIt\u2019s quite alarming for us. It might even be stillborn,\u201d he said in an interview. \u201cWe are running out of time. It could spoil a very powerful intervention tool.\u201d<\/p>\n
Cosatu, the affiliates of which have 1.8 million members, is concerned about the impact of a national lockdown to combat the spread of the virus that has brought most business to a halt. South African President Cyril Ramaphosa on April 9 extended the lockdown, which began March 27, until the end of April.<\/p>\n
The UIF has so far paid out R356 million from the fund, Ramaphosa said. Employers who lay-off workers are being encouraged to apply on their behalf.<\/p>\n
Frustrated Workers<\/strong><\/p>\n Cosatu has been angered by the government\u2019s decision not to declare the UIF an essential service, meaning that its walk-in offices haven\u2019t remained open.<\/p>\n While benefits can be applied for online, Parks said many workers in manual professions don\u2019t have internet access and aren\u2019t computer literate. Complaints have been received from the unemployed that calls to the UIF\u2019s phone lines aren\u2019t being answered, he said.<\/p>\n The UIF hasn\u2019t acted on a suggestion that it get the South African Revenue Service to send a message explaining the benefit to all employers and employees on its database, and could approach private companies to help it set up toll-free phone lines, Parks said.<\/p>\n The UIF\u2019s spokesman didn\u2019t respond to requests for comment sent by email and text messages outside normal business hours.<\/p>\n While discussions have been held between labour, business and government under the auspices of the National Economic Development and Labour Council, the UIF hasn\u2019t explained how it will manage to distribute the benefit, according to a business representative who asked not to be identified because public comments have not been made.<\/p>\n While the coronavirus outbreak in South Africa has been relatively contained, with just over 2,000 known cases, the global disruption has slashed prices and demand for its exports and roiled its capital markets.<\/p>\n