Bloomberg News reports that leading South African business and trade union organisations have criticised both the content and tardiness of a plan by President Cyril Ramaphosa to form a so-called social compact to revive the ailing economy.
Labour federation Cosatu said it would not accept the weakening of workers’ rights and the head of Business Unity SA (Busa) said the lobby organisation was dismayed at how long it had taken the government to put together the plan. In his February state-of-the-nation address, Ramaphosa said a social compact would be achieved within 100 days as he would seek to bring together the government, business, labour and civil society to chart a path forward for a languishing economy. Busa’s Bonang Mohale said on Thursday: “The reason the deadline was not met is because of lack of delivery from the side of government, we must be clear on that. As business we were ready to proceed and we don’t know why the target was not met.” A 32-page document authored by the government and entitled “Framework for a Social Compact in South Africa” was distributed to business and labour leaders this month. The proposals made by government have angered both groupings. Those recommendations include lower entry-level wages and a reform of labour laws. Business has been asked to set firm investment pledges, moderate executive pay, improve job security and agree to “revenue measures” to expand the social welfare net. Cosatu said it would not support a pact that sacrificed the hard-won rights of workers. Mohale said the concerns of business were around the government’s lack of ability or resolve to implement its plans.
- Read the full original of the report in the above regard by Antony Sguazzin & S'thembile Cele at Fin24
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