Government Rewrites Unemployment Fund Rules
The Cabinet approved a bill to give itself powers for hiring and firing board members of the Unemployment Insurance Fund in the event of a deadlock.
The new rules will also give the government secondary control over drafting the annual budget. Supporters of the bill said the powers would only apply in the event that the agency ceases from functioning, which is currently the case.
The fund's operations have been in deadlock since four board members representing unions and employers abandoned the board in protest in December, leaving the remaining two government representatives powerless. As a result, the agency has not been able to pass its 2012 budget, which is already past deadline.
Dissenting board members said they will not return until the government has overturned two recent policies - the consolidation of unemployment aid reserves into the government's treasury; and the current high rate of the unemployment insurance premium.
Ott Tammik