Oct 05, 2012
Relax labour regulations, says FMF’s MashabaBack
Education|South Africa|Herman Mashaba|Mamphela Ramphele
© Reuse this
The labour legislation adopted post-1994 was meant to give greater rights to workers and eliminate the exploitation of particularly blacks by employers but, he noted, the current labour regulation environment was not conducive to the creation of jobs for South Africa’s 7.5-million unemployed citizens, many of whom have never held a job and was unlikely to ever have a job.
Speaking at the South African Chamber of Commerce and Industry yearly convention, in Midrand, he said lifting the burdens on small firms would allow them to flourish and create more jobs. The regulations now required revision and the barriers preventing firms from expanding their workforce should be removed.
Subsidies and incentives would not stimulate business, as companies feared hiring, owing to disruptive labour and the threat of labour disputes on a whim. He also suggested the removal of the minimum wage, as this would enhance the chances of the unemployed being able to seize the opportunity to earn at least some kind of wage, and the application of the rule of law in respect of labour disputes.
He said that it was possible to improved wages without threatening the jobs of others, citing the “havoc” created over the past few months with nationwide illegal strikes throughout many industries.
Centralised bargaining structures, as currently established in certain industries, held negative consequences for smaller firms unable to meet the minimum wages set by the unions and resulted in the closure of businesses, further job losses and no wages at all, Mashaba stressed.
He pointed to South Africa’s low ratings in most of the labour categories of the Fraser Institute's 'Economic Freedom of the World: 2012 Annual Report'. South Africa ranked 85 out of 144 countries.
Meanwhile, Mashada criticised the country’s education system and questioned the delivery of sustainable and valuable educational outcomes, considering that 20%, or R270-billion of the fiscus went to education-related development in 2012/13.
Letsema Circle executive chairperson Dr Mamphela Ramphele noted that the education system was sliding further into crisis, and the need to move away from a system that provided one graduate out of every student class enrolled in a school.
“We have a narrow window of opportunity and we will not have the luxury of an Arab spring but are instead headed towards a searing African summer,” she said.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other Labour and Skills Development News
Updated 5 hours ago Western Europe remained the most popular geography for infrastructure investors, followed closely by North America and Australasia, while investor interest in markets such as India and China has dropped, a recent study by advisory firm Deloitte has found. Deloitte...
Updated 6 hours ago International freight volumes are expected to grow by 17% over the next five years, indicating a conservative recovery in global economic activity and world trade volumes, the International Air Transport Association (Iata) Airline Industry Forecast 2013-2017 revealed...
Updated 7 hours ago JSE-listed Hudaco Industries on Thursday announced that it had acquired the assets and liabilities of imported battery distributor Specialised Battery Systems (SBS). The final total consideration payable by Hudaco would depend on the company’s average profits over...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.