The decision by Business Unity South Africa Busa to withdraw its representatives from the Unemployment Insurance Fund UIF board and related National Economic Development and Labour Council Nedlac structures undermines the necessary social dialogue between government, business and labour, the UIF said.
Busa announced its withdrawal from the UIF board and Nedlac structures related to the UIF last week, saying it had tried unsuccessfully for years to get the state-owned entity on the right track.
The UIF responded to this decision saying: Regrettably, withdrawal from these forums limits opportunities to influence governance outcomes through the mechanisms established for that purpose. This is contrary to the principles underpinning South Africas social dialogue framework, which places a premium on sustained engagement, even where significant differences of opinion exist.
