Injured workers are still being failed by South Africa’s Compensation Fund, says Cosatu

For many South African workers, getting injured on the job is only the beginning of the struggle.

The bigger battle often starts afterwards standing in endless queues, fighting paperwork, making repeated trips to labour centres and waiting months, sometimes years, for money they are legally entitled to receive.

Now, Congress of South African Trade Unions has renewed calls for urgent reform at South Africa’s troubled Compensation Fund, saying the system meant to protect workers has become deeply dysfunctional.

The union federation says a recent court ruling has once again exposed how badly things have deteriorated.

Court ruling shines spotlight on a broken system

The latest criticism follows a Supreme Court of Appeal ruling linked to the Van der Vyver Transport case, which prompted calls for an independent investigation into the state of the Compensation Fund.

For Cosatu, the judgment simply confirmed what workers, unions and many employers have been saying for years: the system is failing the people who depend on it most.

The Compensation Fund exists to provide financial support to employees injured at work or affected by occupational diseases. In cases where workers die while working, the fund is also supposed to assist their families.

On paper, it forms one of the pillars of South Africa’s worker protection system.

In reality, many workers describe the process as exhausting and humiliating.

“People give up before they get help”

Across social media platforms and labour forums, stories about delays at labour centres have become painfully common.

Workers complain about spending entire days in queues only to leave without answers. Others say documents go missing repeatedly or claims simply stop progressing without explanation.

Cosatu says countless workers contact the federation asking for help navigating bureaucratic obstacles that should never have existed in the first place.

The same frustrations are often raised about the Unemployment Insurance Fund, which has faced repeated criticism over delays, fraud and outdated systems.

For many South Africans living paycheck to paycheck, waiting months for compensation after losing income can be financially devastating.

In some cases, families are forced into debt while injured breadwinners wait for assistance.

The shadow of corruption still hangs over the system

Part of the anger surrounding the Compensation Fund comes from years of corruption scandals tied to worker funds.

During the state capture era, both the UIF and Compensation Fund repeatedly made headlines over allegations involving politically connected individuals, questionable investments and misuse of public money.

Although progress has been made in tackling corruption, Cosatu says the system remains vulnerable.

The federation argues that outdated technology, weak administration and staffing shortages continue to create opportunities for fraud while making life harder for ordinary workers.

The frustration is especially sharp because workers and employers contribute money to these funds every month with the expectation that support will be available when needed.

Why the problem became impossible to ignore after Covid-19

The Covid-19 pandemic exposed just how outdated South Africa’s labour support systems had become.

When lockdowns hit, millions of workers suddenly depended on UIF support to survive.

Despite eventually distributing billions in relief, the system struggled under pressure. Long delays, technical failures and fraud allegations dominated headlines throughout the pandemic period.

At the same time, the crisis also showed how important these funds are to the country’s social safety net.

During Covid-19, the UIF helped support millions of workers and businesses at a time when entire industries were collapsing.

Labour groups argue that if the systems had been properly modernised years earlier, many of the problems seen during the pandemic could have been avoided.

More workers now depend on these protections

Another challenge is that South Africa’s labour protection system has expanded significantly in recent years.

Changes to labour laws have extended benefits to more vulnerable groups, including domestic workers and employees suffering from conditions such as post-traumatic stress disorder linked to workplace trauma.

Further proposals could eventually extend protection to gig economy workers, performers and platform-based workers such as e-hailing drivers.

While labour groups support these reforms, they warn that expanding access without fixing administration problems could place even more strain on already struggling systems.

Cosatu says the solution already exists

One of the strongest criticisms from Cosatu is that government has repeatedly ignored practical offers to fix the system.

According to the federation, organisations including South African Revenue Service and the Government Technical Advisory Centre have previously offered assistance or proposed modernised systems to improve operations.

Business groups also reportedly offered support to help redesign parts of the registration process.

But Cosatu says little meaningful progress has followed.

Instead, labour leaders accuse officials of repeatedly promising reform while conditions at labour centres remain largely unchanged.

A crisis bigger than paperwork

Beyond the administration failures, unions say the issue is ultimately about dignity.

For many workers, the Compensation Fund is supposed to provide security during some of the hardest moments of their lives after workplace injuries, illness or the death of a family breadwinner.

When that system fails, the consequences reach far beyond paperwork delays.

In communities already battling unemployment, rising food prices and economic pressure, delayed compensation can push entire households deeper into poverty.

Cosatu argues that fixing the system does not require complicated political solutions.

The federation says what is needed is competent management, modern technology, skilled staff and stronger action against corruption.

Until that happens, thousands of South African workers may continue paying into a system they no longer trust will protect them when they need it most.

{Source: IOL}

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