Probably one of the most wonderful pieces of news for job creation is the Government of National Unity.
As I’ve said before, every political party has put job creation at the top of their list. I’ve also constantly stated that “business as usual” will not turn around the dire unemployment problem in South Africa.
It takes a new set of politicians with a different approach to the country’s intervention to encourage job creation in the private sector. Over almost 10 years, in this column, I have written about how a government can intervene in ensuring that job creation is enhanced and encouraged.
I remember, most fondly, when former finance and labour minister Tito Mboweni said: “We need to deregulate for the small business sector.”
At last, the time has come. The Government of National Unity can concentrate on the lessons learnt about job creation from across the world. It is trite to state that the small business sector will be the answer for South Africa over this new government’s term of office. It is job creation and not politics. It is also true to state that the less the politicians and the government have to do with the business sector, the better.
We, in South Africa, now have a chance to plug the holes in the sinking ship of unemployment. The new ministers, deputy ministers and chairpersons of the portfolio committees, across the board, will have to have a careful look at what their portfolios can do to enhance the ability of the small business sector to survive and, thereafter, thrive.
Cadre deployment has to come to an end and the broken education system has to be re-geared to ensure that our learners are fit for purpose in our modern economy.
The education system will have to start from the bottom up. Yes, it will take years, and yes, it will cost the fiscus to rejig our institutions of learning, but the value will be reaped handsomely in the future.
Education from early childhood is vital, especially now as we move away from manual labour. All the economists tell us that education is the key but, unfortunately, this will take many years and an enormous amount of effort.
Right now, we need some quick fixes to start bringing people back into the workplace. The most obvious thing that will happen and is happening with immediate effect is a change of attitude and, certainly, an aura of excitement within the business community.
For years, almost 15 years, the business community, including small businesses, have gone on an investment strike. Employers have had little faith in the system and, to a large degree, have invested their money abroad or in big business.
Small businesses have been reluctant to grow their businesses due to the negative political environment coupled with the onerous labour laws and regulations. Many of the labour regulations can be either expunged or given the ability to be exempted.
The minimum wage regulations and legislation will be kept in place. Regardless of what any politician might think, employers cannot unilaterally lower someone’s salary.
Furthermore, it is traumatic for the trade unions, who have an unfounded belief that systems will be brought into play, making it more and more difficult for their members and all employees in South Africa. Once again, this cannot be true by any stretch of the imagination.
Employees who are subject to terms and conditions cannot have the terms and conditions made worse or more onerous for them. Our strict labour relations act will not allow any such move. The idea is to create more jobs and not make things more difficult for those who have employment. It will be the other way around.
The idea is to enhance productivity and create a better and more aspirant workforce. The better the conditions, the better and more productive the workforce will become.
All the trade union movement’s fears will dissipate quickly in the first 100 days of the new Government of National Unity. If the trade unions, government and private sector could work together, they would immediately see how each one of the ministries could enhance their output, encouraging job creation and better terms and conditions. Now is our chance to improve service delivery and, at the same time, encourage businesses to be more productive and, in turn, employ more people.
I await, with strong anticipation, a whole new environment. Everything could fall into place sooner rather than later to create a unified economy where we all tackle risks together and look at creating a prosperous state. I am sure that if the Department of Employment and Labour, under the new minister, is answerable to every other sector of our society, we will have a labour-friendly environment creating more jobs and enhancing those that are in existence.
* Michael Bagraim is a labour lawyer and DA MP.
** The views expressed here are not necessarily those of Independent Media
Do you have something on your mind; or want to comment on the big stories of the day? We would love to hear from you. Please send your letters to [email protected].
All letters to be considered for publication, must contain full names, addresses and contact details (not for publication)