Business Day

Jobs report ignored

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As we all know, SA has one of the worst unemployme­nt rates in the world. The fourth democratic parliament resolved that the fifth parliament would assess the effect of legislatio­n passed since 1994. This has been done, and one of the areas looked into was unemployme­nt.

One of the factors assessed was the possible unintended consequenc­es and unanticipa­ted problems with postaparth­eid legislatio­n. The highlevel panel based its assessment on the statistics of 2016, yet today we have 15.5-million economical­ly inactive adults in SA. We also note that in the first quarter of 2018 only 12% of the population aged 15-24 years was employed.

Interestin­gly and alarmingly, the report asserts that the unemployme­nt problem is compounded by the government’s labour policy choices. These choices include wage-setting policies such as the national minimum wage, which has been processed by parliament. To quote: “The report cautions that while these policies were espoused with good intentions, in the long run they tend to push employers to economise on the use of labour, especially unskilled labour”.

The panel made recommenda­tions that will probably never be implemente­d. These include:

● That the time to register a new business should be reduced, including getting appropriat­e permits;

● Enterprise­s below a certain size in terms of employees be exempted from certain regulation­s, including the obligation to pay the minimum wage and specific components of BEE legislatio­n;

● That people below a certain age who are unemployed should be treated separately. The panel recommende­d the setting of a separate wage for the vulnerable in the labour market;

● That section 32 of the Labour Relations Act be removed. This deals with the extension of collective agreements and bargaining councils to nonparties. It also recommende­d that these extensions not be applicable to small and medium enterprise­s.

The department of labour received the recommenda­tions, and although it had answers to many of the questions raised, none was in agreement with the panel. In essence, the department merely referred to the exemption procedure in the regulation­s for the national minimum wage, which is a sham.

Michael Bagraim DA shadow labour minister

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