The Unemployment Insurance Fund (UIF) has condemned Business Unity South Africa (Busa)'s decision to withdraw its representatives from the UIF board and related National Economic Development and Labour Council (Nedlac) structures, stating it undermines necessary social dialogue between government, business, and labor.Busa cited years of failed reform efforts and governance issues within the UIF as reasons for its withdrawal.

The UIF emphasized that disengagement from statutory structures contradicts South Africa’s social dialogue framework, which prioritizes sustained engagement despite differing opinions.

The UIF rejected claims that meaningful reform can be achieved outside established institutions, stressing the importance of accountability and robust debate.

Busa and labor federation Cosatu argue the UIF is dysfunctional, calling for administrative intervention to stabilize operations and address benefit claim backlogs.

The UIF, funded by employer and employee contributions, faces ongoing challenges including audit weaknesses, ICT issues, and inefficient benefit payments.

Busa CEO Khulekani Mathe acknowledged six years of engagement but noted reforms have not yielded results, urging urgent action to prevent further funding of a failing system.The UIF highlighted its past proposals to improve governance and employer compliance, while requesting clarity on Busa’s reform plans.