Today's Labour News

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employment thumb100 City Press reports that according to the Centre for Development and Enterprise’s (CDE’s) Ann Bernstein, South Africa faces either getting rid of the minimum wage and other policies or facing worsening unemployment.  

She was speaking after a media briefing ahead of the Jobs Summit this week.  The CDE is an advocacy body for big businesses.  The National Economic Development and Labour Council (Nedlac) will convene the two-day summit on 4 & 5 October at the Gallagher Convention Centre in Johannesburg.  Bernstein said among the major challenges that worsened unemployment in the country were bad policies such as the minimum wage and the collective bargaining system.  She pointed out that collective bargaining disadvantaged smaller employers because it imposed unavoidable wage demands on them.  Bernstein said the country needed a bold reform agenda:  “We need to change the approach to collective bargaining so that work seekers and smaller firms are not priced out of the market; reduce the cost of employing young people, especially in comparison to older, more experienced workers; and reduce subsidies being paid to firms that are capital and skill intensive.  She also claimed that the minimum wage of R20 per hour was another bad policy as some employers would not be able to afford it.  “Rather have low-skill, low-wage than no jobs.  That’s the big decision the country has to be make,” Bernstein opined.

  • Read this report by Lesetja Malope and view an infographic with unemployment facts and figures at City Press

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