|CCMA 'will not be able to pay its bills'
No word if R32m shortfall will be paid by National Treasury
March 23, 2010
By SAMANTHA ENSLIN-PAYNE
Business Report - Home - CCMA 'will not be able
to pay its bills'
A severe cash flow crisis has hit the Commission
for Conciliation, Mediation and Arbitration (CCMA)
and if it does not receive additional money from
the National Treasury this week it will not be
able to pay its bills at the end of the month.
"If we don't get the money this week we will not
be able to pay our debts," Nerine Kahn, the
director of the CCMA, said on Friday.
The CCMA's bank balance currently stands at
about R2.4 million, but due this week are
payments of about R34.4m, including R11.9m for
full-time staff salaries and R4.3m for part-time
commissioners' salaries. Overall the CCMA is
The CCMA's annual disbursement from the Treasury
for the 2009/10 financial year was R326m. Last
year it was granted an additional R32m that came
out of savings identified by the Department of
Labour - from whose budget vote it obtains
funding. But at the time the CCMA indicated that
that would not be enough to see it through to
the end of the financial year.
"We have been lobbying since June last year for
additional funds," Kahn said.
On Friday, the National Treasury could not say
whether additional funds would be made available
"We have been told that another R32m will be
paid, but it has not been signed off," Kahn
Jimmy Manyi, the director-general of the
Department of Labour, said: "Ever since I
started at the Department of Labour, all the
funding requests by the CCMA have always been
honoured by the National Treasury."
The cash crunch facing the organisation is due
to an increase in the use of part-time
commissioners to cope with the sharp rise in its
The CCMA facilitates section 189A retrenchment
processes, which have increased sharply as a
result of the economic crisis. Last year it was
also tasked with implementing the training
lay-off scheme, a plan by the government to
encourage companies to send staff who are on
short time or earmarked for retrenchment on
The CCMA's case load increased to about 150 000
in the year to March 2010 from about 136 000 the
year before, with more than 60 percent of these
cases handled by part-time commissioners.
In the year to March 2011 it has been granted
additional funds of almost R74m for its
increased case load and inflation adjustments
for staff salaries.