Improved UIF benefits coming

Mdladlana said 2008 saw unemployment benefit payments increase by 31.7% in "a clear reflection of the impact of the current economic crisis" on South Africa.

He said job losses continued to mount after 200 000 were shed between the last quarter of last year and the first quarter of this year.

"Job losses are mounting and poverty is deepening.

"To respond to this challenge, we intend to increase the period of benefits from eight to 12 months whilst also increasing the monetary benefits," the minister told MPs during Parliament's debate on the labour budget.

"As part of improving benefits for our citizens I have tasked the (unemployment) fund to look at the Unemployment Insurance Act."

It should also investigate the possibility of including public servants as potential beneficiaries of the fund, he said.

Mdladlana indicated these were among several potential labour law changes being mulled by his ministry.

A general review of legislation was necessary to ensure that South Africa adhered to international standards on workers' rights because a study done last year indicated the country "has a decent work deficit".

"We will review our labour laws," he said.

"While the study did not reveal violations of core labour standards such as forced labour and child labour, it did find substantial evidence of jobs being created with little security and which make the exercise of rights contained in labour legislation very difficult if not impossible."

He said particular care should be taken to ensure that temporary workers enjoyed the same rights as those on permanent contracts.

The government had set itself the ambitious target of creating half a million job opportunities by the end of the year through the Extended Public Works Programme, the majority of which were expected to be temporary.

But Mdladlana said if the government and its social partners co-operated in a "coherent and concerted" way they could create decent sustainable jobs.

He added that to soften the blow of the recession, the Commission for Conciliation Mediation and Arbitration (CCMA) had been told to continue to broker alternatives to retrenchments,

Between January and March the CCMA saved more than 4 000 jobs by getting employers to agree to alternatives to retrenchments.

"I know they have done a sterling job and can also help in other sectors."

Mdladlana said his ministry was exploring the possibility of retraining workers facing retrenchment through using credits they had with the unemployment benefit fund.

"In order for this to succeed we will have to secure an agreement with trade unions and employers' organisations."

- Sapa