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Sat May 26 12:15:32 SAST 2012

Let us debate job-restricting labour legislation

The Editor, The Times Newspaper | 06 September, 2011 00:35
Jacob  Zuma
Jacob Zuma
Image by: SAPA

The Times Editorial: In February, President Jacob Zuma boldly declared 2011 the year of job creation. He supported this assertion with a range of initiatives - a R9-billion jobs fund, R20-billion in tax allowances and tax breaks to promote investment, expansion and upgrades in the manufacturing sector, as well as other plans.

Back in February, Zuma said: "Our goal is clear. We want a country where millions more South Africans have decent employment opportunities, which has a modern infrastructure and a vibrant economy, and where the quality of life is high. We all have a responsibility to work hard to make this a reality."

Contrary to the president's promises, the official unemployment rate is 25.7%. And, given the manner in which the global economy is slumping, more jobs will probably be shed in the next year or so.

This is borne out by the release on Friday of US monthly payroll data that showed no new jobs were created in the world's most powerful economy.

How then do we begin to address the ambitions of Zuma's New Growth Path, announced last year, which aims to create five million jobs by 2020 and reduce unemployment to 15%?

These bold targets will need bold action.

Yesterday, analyst Moeletsi Mbeki criticised the ANC government for its lack of investment in entrepreneurs, in preference of black economic empowerment that rewards few.

Zuma and the ministers in his economic cluster will have to go further than this.

A few weeks ago, unions labelled Finance Minister Pravin Gordhan a right-winger for daring to suggest that labour legislation was too inflexible. He was virtually declared the enemy of the workers.

But why not open this debate? Why are we willing to entertain study groups into nationalisation but not into conditions that prohibit entry into the labour market, particularly by young people?

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