Save a job, not a cent

31 August 2015 - 09:10 By NATASHA MARRIAN and SIKONATHI MANTSHANTSHA

President Jacob Zuma yesterday called the economy "sick" and appealed to business and labour to put jobs before profits and wage hikes. Acknowledging that it could no longer be "business as usual", Zuma appealed to business and labour to play their parts in saving jobs.Speaking at the official opening of Medupi's generating unit 6 in Lephalale, Limpopo, he said the coming on stream was a milestone for the country but urged Eskom to work "with speed" to ensure that there were no more delays at Medupi because energy remained a "binding constraint" to economic growth.The launch was four years behind schedule.Zuma said that when jobs were lost the government had to step in, even though it was "in the business of running the country", not businesses ."When the economy is not functioning, when workers are out, it becomes the burden of the government. Everybody says [the government is] not running the economy properly. But the business sector must run the economy."If the private sector were concerned only about profit margins in the current economic climate, it would mean that it "did not care", Zuma said. "Reducing labour to maintain profit margins, is that the way to go?"Labour should not demand high wages that could result in job losses, he said ."Should we come together and recognise that the economy is sick? How should we save jobs? Should we tighten our belts?"Only the government had "tightened its belt", as announced by Finance Minister Nhlanhla Nene in his Budget."Shouldn't the private sector and workers also tighten their belts? It should not be 'business as usual'; it should be 'business unusual'," Zuma said.In the mining and steel sectors, the government, business and labour are in talks to save thousands of jobs as the energy crisis, among other factors, bites harder. They are expected to sign a declaration on saving jobs today.The Department of Trade and Industry has come to the rescue of the beleaguered steel industry, approving a 10% duty on certain imported steel products currently entering the country free of duty. Approval of the import tariff would be subject to stringent conditions, including local producers not increasing prices for the products subject to the duty.Zuma said the nine-point plan, outlined in his State of the Nation speech, will remove constraints on the economy and strengthen business and consumer confidence. It includes revitalising agriculture , boosting small business and dealing with energy-supply uncertainty...

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