UIF commits millions to Scaw Metal to save jobs
Millions of Rands were signed in an agreement between the Unemployment Insurance Fund and MerSETA to aid Scaw Metal employees during the difficult trading conditions in the steel industry.
Millions of Rands were signed in an agreement between the Unemployment Insurance Fund and MerSETA to aid Scaw Metal employees during the difficult trading conditions in the steel industry.
Although the UIF has recently signed a R11 958 732 agreement with MerSETA to fund the training of 325 employees from Scaw Metal for a period of six months, only the Germiston branch’s 325 employees will benefit from the training lay off scheme, and not members of the Witbank Distribution branch.
“Only the 325 employees at the Germiston branch will undergo the TLS, this will not affect the Witbank distribution branch,” said Dud Ndlovu, head of communications.
This comes after Scaw Metal’s application to the CCMA in March 2016 was reviewed, pending their possible retrenchments.
training lay-off is a temporary suspension of work of a worker or a group of workers that are facing a risk if retrenchment due to their company being in distress as a result of economic conditions.
Under the scheme workers agree to forego their normal wage to attend the training programme and accept a training allowance during the training period. Employers gain a recovery period by reducing payroll costs for a stipulated period whilst improving the skills of their workers at limited costs to the company.
