Oct 05, 2012
Relax labour regulations, says FMF’s MashabaBack
Africa|Education|Environment|Sustainable|System|Africa|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 (150 word limit)
Other Labour and Skills Development News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 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.
This Week's Magazine
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.