Cape Town - Cosatu and the Cape Chamber of Commerce have called for the Public Investment Corporation (PIC) to invest in job creation projects instead of focusing on profits.
The two organisations made the call in Parliament on Wednesday during public hearings on extending the benefits for the Unemployment Insurance Fund (UIF).
The portfolio committee on labour, which is holding public hearings on the Unemployment Insurance Amendment Bill, said the Bill was aimed at accommodating people and increasing maternity benefits for those who were excluded in the past, including women who had miscarriages and students doing learnerships.
The PIC is the largest asset management fund on the continent with assets worth R1.8 trillion. The Government Employees Pension Fund is the largest contributor to the PIC, followed by the UIF.
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Cosatu’s Parliamentary Officer Mathew Parks told MPs that the country’s unemployment rate of 34 percent was unsustainable and further measures were needed to reduce this number.
He said the Bill was progressive as it included a number of elements that were not there before.
Parks said they backed the proposals in the Bill to extend the UIF benefits from 238 to 365 days and to increase maternity leave benefits to 66 percent of the employee’s salary.
“Most workers, who lose their jobs, take at least two years to find new work,” said Parks. “The increase in UIF benefits from 8 to 12 months is a significant step in this regard. This is critical when thousands of mineworkers are losing their jobs on a weekly basis.
“Cosatu supports the proposal to allow the PIC to invest surplus UIF funds. However, this must be done in support of investments which create and protect jobs. They cannot simply be done for the sake of profit alone,” said Parks.
Cosatu was backed by the Cape Chamber of Commerce in this proposal.
Jeremy Marillier, of the Chamber of Commerce, said the law was very clear that the PIC must support job creation projects.
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When the PIC makes investments, these must be in line with the legislative requirements.
Marillier said the mandate of the PIC was clear and that was to invest in sectors that create jobs.
The PIC did not respond at the time of going to press, but according to its annual report for 2015, which was tabled in Parliament, it has facilitated more than 38 000 permanent jobs, 13 186 temporary jobs and sustained 28 477 jobs during the construction phase.
The annual report adds that it has created jobs in social infrastructure, economic infrastructure, priority sectors and small and medium enterprises.
In economic infrastructure the PIC has invested in roads, rail, transport, logistics and energy. The social infrastructure projects included housing, health and education.
CAPE TIMES