Labour Minister Mildred Oliphant
Photo by: Duane Daws
Less than two percent of the training layoff scheme's R1.2-billion budget has been spent, Labour Minister Mildred Oliphant has revealed.
In a written reply to a parliamentary question by Democratic Alliance MP Ian Ollis, Oliphant revealed that only R20-million was distributed to companies to cushion workers against the threat of retrenchment by providing a training stipend.
"The UIF [Unemployment Insurance Fund] board recommended to the minister of labour who approved on September 23, 2009 to commit R1.2-billion of the fund's money for the 'training layoff schemes'," Oliphant said.
"Due to slow take-up in the scheme, the budget had to be provided for in future years."
In a statement released on Monday, Ollis said it was "clear" very little was being done to ensure the scheme functioned as it should.
"By 2011, less than one percent of the 900 000 workers who had lost their jobs between 2009 and 2011, had benefited from the scheme," Ollis said.
"With 7.57-million unemployed South Africans, it is condemnable that government has failed to make the training layoff scheme funds available for workers facing retrenchment."
Ollis said he would write to both Oliphant and Finance Minister Nhlanhla Nene to demand a plan to improve the functioning of the scheme.