The concerns and observations emerged during briefings from the Department of Employment and Labour and the UIF on progress regarding payments to affected factory workers in the Free State, as well as on the unbundling and repositioning of the UIF and CF into standalone Schedule 3A public entities.
The committee welcomed the resolution of payment challenges affecting former employees of the clothing factory, noting that 1 488 workers have now been paid over R17 million following intervention by the department and UIF.
The committee noted that the delays in processing payments were attributed to administrative and technical challenges, including the absence of employee declarations, the collapse of the company payroll system after liquidation and the need to verify worker information before payments could be processed.
Members emphasised the importance of strengthening advocacy and compliance programmes to ensure employers meet their legal obligations in respect of UIF declarations and contributions, in order to avoid similar situations in future. The committee further stressed the need for improved coordination between the UIF and the South African Revenue Service (SARS), particularly regarding employee data management.
On the matter of the unbundling and repositioning of the UIF and CF into standalone Schedule 3A public entities, the committee noted the department’s assurance that the process is not aimed at privatisation, but rather at improving governance,...
WASHINGTON, July 22, 2026 /PRNewswire/ -- This release is issued by King & Spalding: The U.S. Department of Justice has announced that New York Packaging II LLC, doing business as Redi-Bag USA,...