SPEECH BY MR FRED NEL, MPL ON WORKER’S DAY, DELIVERED IN THE GAUTENG PROVINCIAL LEGISLATURE ON THURSDAY, 26 APRIL 2016

South Africa’s Economic Growth Rate Too Low to Create Jobs

Workers’ Day started as a commemoration of the struggles that workers had to overcome during their campaigns to improve working conditions. These struggles often ended in bloodshed and death of workers as they demanded better treatment. It is often also associated with the trade union movement that organised workers and fought for their rights since the late 1800’s.

Unions started out to improve the working conditions of workers especially those who worked in dirty and unsafe factories. It also started to bargain on behalf of workers for a fair wage and later started entering politics.

Although the initial purpose that brought about labour unions was noble, one could argue that unions have morphed into organisations reaching beyond its core function in society.

However, we cannot talk about Workers’ day in South Africa without looking at employment. It is difficult to celebrate this day when a quarter of our population do not have employment opportunities available to them. In fact, this number is growing more working South Africans are joining the ranks of the unemployed.

A clear indication of this is the drop in labour union membership in the country. We have seen in the last year that large unions like NUM and SAMWU reported major drops in membership figures. This cannot be attributed to increased competition among labour unions alone, but is mainly associated with job losses.

These losses are a direct consequence of a lack of economic growth in South Africa. According to Mineweb/ Bloomberg:

“Even without labour upheaval, the growth prospects in Africa’s most industrialised economy are looking dire. The National Treasury expects the economy to expand less than 1% this year, undermining efforts to cut a 25% unemployment rate, while the nation’s credit rating is on the brink of being downgraded to junk. The risk of political turmoil is also rising

NUM has also been weakened by the firing of tens of thousands of its members in response to the commodity price slump. The mining industry employed 462,000 people in the final quarter of last year, 5.9% less than in the same period the year before, and down from a peak of more than 800,000 in the 1980s, according to the national statistics agency. Mining production fell for a sixth straight month in February, contracting an annual 8.7%, the agency’s data shows.”

In short, South Africa’s economic growth rate is too low to create jobs, in fact jobs are being cut as a result of this low growth.

However, this situation can be turned around. The DA launched its vision for South Africa in 2015 known as Vision 2029. As part of this plan the DA recently launched its five point job creation plan that aims to generate employment through the following focus areas.

  • Invest in integrated energy, transport and ICT infrastructure for job creation;
  • Give more people the education and skills they need to get a job;
  • Radically reform the labour regime to support job creation;
  • Provide direct incentives for job creation; and,
  • Create a nation of entrepreneurs by making it easier for South Africans to start and grow their own small businesses.

There is no freedom in poverty. There is no fairness in being kept poor. There are no opportunities for the poor.

We need to turn this around by establishing a society where individuals and business are free to access and participate in the economy instead of being restricted by unnecessary government regulation and red tape.

We must promote fair labour practices but not draconian labour laws. We need to provide proper education and training in order to provide equal access to employment opportunities for South Africans.

If we do this we can employ the 25% unemployed South Africans. Moreover, we could in future truly celebrate workers day rather than ignoring unemployment issues.

 

Media enquiries:

Fred Nel MPL

DA Gauteng MEC on Cooperative Governance, Traditional Affairs and Human Settlements

083 263 2427

SPEECH BY MR KHUME RAMULIFHO, MPL ON WORKER’S DAY, DELIVERED IN THE GAUTENG PROVINCIAL LEGISLATURE ON THURSDAY, 26 APRIL 2016

A fair society creates work opportunities for all

Workers must celebrate and have fulfilment in their jobs. They have rights which are guaranteed by The Constitution.  Legislations such as Labour Relations Act outlining Basic Conditions of Employment, Occupational Health and Safety Act ensure tools that are effective in protecting them.

It is unfortunate that certain labour unions abuse workers’ rights by engaging in illegal strikes, vandalize public facilities or use violent methods to express their frustrations whenever their expectations or demands are not met.

Certain leaders threaten those who chose to work, even when their actions are unlawful. The ‘Pikitup strike’ is one typical example. The “no work no pay rule” affects those who don’t report to work because of fear to be victimized.

While Workers’ Day is recognized and celebrated in South Africa, few people have access to this opportunity. So many people have never worked and earn an income in their life. This affects both skilled and unskilled people.

There are many who have given up, others are consider giving up because they have been looking for job opportunities with no success.

The current unemployment rate and countless poverty alleviation programmes attest to this challenge.

In order to create a fair society, people must get opportunity to work.

The solution is to attract local and international investors. This will be possible when government is prepared to cut red tape.

The DA believes that government should be accountable and protect jobs and businesses by ensuring the timeous payment of service providers within 30 days.

 

Media Enquiries:

Khume Ramulifho, MPL

DA Gauteng Shadow MEC of Education

082 398 7375

Time For Labour Minister Oliphant To Crack Down On SAMWU Flouting Labour Laws

On Monday 16 November, citizens of Johannesburg arrived at all of the vehicle licensing offices of the City of Johannesburg’s regions, to be met with closed doors.

 

A sign on the doors read:

“Notice! To all SAMWU Members.

Date:16 Nov’ 2015.

Venue: Wemmer Complex,

Time:12:00.

To discuss the following: Killing of Police officers. 1. March against Police Killings. 2. Feedback”

 

No advice was offered to customers of the city as to how to get vehicles registered, submit applications for vehicles or driver’s licenses, or when the staff of the City would be back at their desks.

Hundreds of people left angry at the total disregard for the needs of the City or of the public.

The Democratic Alliance is equally horrified at the recent police killings, which must be condemned.

However, adding to the lawlessness will not solve this problem.

SAMWU should be having these meetings on weekends or after hours and not during work hours.

The effects on productivity and the economy of Union Members downing tools during office hours for every issue that arrises in South Africa is unlawful and not in the interests of the country.

I will today write to the Minister of Labour, Mildred Oliphant, to request that she mandate an investigation into the flouting of Labour Regulations by SAMWU

 

Media enquiries:

Ian Ollis MP

DA Shadow Minister of Labour

082 714 7572

 

Samkelo Mgobozi

Manager: Press Office

071 863 6774

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SPEECH BY MR JANHO ENGELBRECHT, MPL IN THE BUDGET DEBATE ON ECONOMIC DEVELOPMENT DELIVERED IN THE GAUTENG PROVINCIAL LEGISLATURE ON TUESDAY, 23 JUNE 2015

Ten True Pillars of Economic Transformation Required in Gauteng

Note to Editors: This address was made in the Gauteng Provincial Legislature during the 2015/16 Annual Budget Debate for the Economic Development Budget Vote

 

It is alarming that the departmental entities did not make presentations on their budget allocations for the coming financial year.

Given the fact they receive more than half a billion Rand, I expected the least they would do would be to tell us how they intend spending this money aligned with their Annual Performance Plans.

As a Portfolio Committee we are tasked with an oversight and scrutinizing role. Departmental entities do not operate in a vacuum, they are accountable to this House. If their representatives are not here, I hope this message is conveyed to them.

We are in agreement that the biggest challenges our province face are, unemployment, poverty and inequality, but it’s with the way we deal with these challenges where we do not agree.

It is extremely difficult to make an assessment of a budget if you do not agree with the contents thereof. If one look at the priorities and strategic objectives of the Department and the 10 pillars of the province, it reads like a page out of a political catchphrase textbook. It’s all about modernization, revitalization, re-industrialization, transformation and last but not least, taking the lead in Africa’s new industrial revolution. Nice catchy words, masterfully crafted in the backrooms of Luthuli-House I’m sure.

It is not my intention to make light of efforts by this administration, I’m very sure there is a genuine effort to change the economy of this province. With that in mind I want to offer an alternative, so I’d rather spend time on the 10 pillars this Province really need to grow its economy and make progress in addressing unemployment, poverty and inequality.

  • Provide leadership on the economy:

The government must provide certainty on its vision for the economy, the policy it intends to implement to realise that vision, and its commitment to ensuring that the economy serves ordinary people and not only those connected to the governing party. Current policy inconsistencies and uncertainty chase business away, like the constant changes to BBBEE codes.

  • Manage public money better:

Steps must be taken to combat government corruption. Let’s make sure that government spending decisions are taken in the best interest of all South Africans. Let’s rather not have Nkandla’s, weapons procurement scandals and the various other blights on our public image.

  • Provide direct incentives for job creation:

In recognition of the impact of high unemployment on our economic growth potential, the government should directly incentivize job creation by South African businesses. Job creation should not be geared towards creating more government jobs, but private sector jobs. The Youth Wage Subsidy is one such incentive. In the province whose name we dare not say, the youth wage subsidy was implemented and resulted in the creation of 15000 private sector jobs for young people since its inception.

  • Make sure that labour laws support job creation:

The government must ensure that labour regulations and trade union engagements achieve a balance between the protection of workers’ rights and the need for labour market flexibility in support of job creation. We can’t afford the current battle where opposing unions are vying for political power and influence, where workers rights feature low on the list of priorities. Let’s clear up a misconception some people have about labour unions, unions protect their members and fight for their members, who are already employed, to get more, they don’t fight for the unemployed, because the unemployed cannot contribute membership fees.

  • Support small businesses:

The government must make it easier for South Africans to start and grow their own businesses. This support needs to go further than minor uncoordinated interventions, it must be well conceived and sustainable. Critical to this is fostering business and entrepreneurship in sectors of the economy that are lacking i.e. science and engineering.  This should be coupled by the reduction of cumbersome red tape.

  • Support redress:

Redress should be an all-inclusive process, not exclusively for the well connected. In doing so it will allow access to capital, allow participation in the economy, and increase ownership. This will truly stimulate the economic climate of this province.

  • Create an enabling environment for growth:

By investing in economic infrastructure and, where possible, bringing down the cost base in the economy, the government can provide an enabling environment for economic activity, growth and job creation. Our fiscus cannot increase social grants indefinitely, and if we don’t improve the economic environment, unemployment will increase, decreasing our tax base putting more pressure on the fiscus. You can take the argument to its conclusion, it leads to nothing good.

  • Invest in knowledge:

The government must work to give more people the education and skills they need to get a job and to support the kinds of research and development that can make South Africa a winning nation in a globalised knowledge economy. It is a basic concept, if we can’t compete we can’t grow.

  • Increase investment and savings:

To drive economic growth, attract international investment and help South Africans to maintain quality of life during retirement and difficult times, the government should actively support both increased corporate investment and personal savings and investment.

  • Boost trade:

The Premier briefly touched on the Provincial foreign trade office, and while it is noted – before it is lauded, more information must be provided on what could be a critical department to boost trade in the province.

This is what is needed to grow the economy. Sadly for the many millions of unemployed South Africans in Gauteng, this administration sets itself above its people – they are first ANC then South African. If it is not to the advantage of the ANC it’s simply not done. If you continue down this path, and there is no indication that you will change, the electorate will punish you, as they already did last year.