Johannesburg - Organised labour will meet with the government today to discuss economic and socio-economic matters.
The meeting, which will be chaired by President Jacob Zuma, will bring together Deputy President Cyril Ramaphosa, economic cluster ministers and the leadership of labour federation Cosatu, the Federation of Unions of SA (Fedusa), as well as the National Council of Trade Unions (Nactu).
The presidency said yesterday: “The meeting is scheduled to reflect on the work being done by government, business and labour to reignite growth so that jobs can be saved and created in the country, given the difficult economic climate and other issues of interest to labour and government.”
The government successfully worked with business and labour to avert a sovereign credit downgrade and boost the economy this month.
Reforms needed
As a result, Finance Minister Pravin Gordhan, in his recent international roadshows with big business and organised labour, has bought South Africa some time with rating agencies until at least December.
Ratings agencies said the country needed reforms such as increasing flexibility in the labour market, clarifying mining laws and consolidating state-owned enterprises to boost business and confidence.
S&P Global Ratings said: “Prolonged strikes, mainly in mining and some manufacturing sectors, combined with less flexible labour laws and high youth unemployment, continue to pose structural weaknesses to South Africa’s economy.”
Fedusa said yesterday that it supported the implementation of the nine-point plan, which prioritises the urgent interventions designed to accelerate inclusive economic growth and create decent jobs through transforming the economy and increasing investments.
Dennis George, Fedusa’s general secretary, said the three interventions included stimulating job drivers, economic enablers and introducing cost-cutting interventions to grow the economy.
He said Fedusa president Koos Bezuidenhout would lead the labour federation’s delegation and argued it was important to build on the collaboration of the positive engagements with the three rating agencies and international investors.
The meeting follows the recent economic renewal report back meeting to the president on May 9 by business, which was also attended by labour.
Business leaders started meeting with the government at the beginning of this year after rating agencies warned of a downgrade to junk after Zuma’s shock firing of former finance minister Nhlanhla Nene caused the rand to plummet and bond yields to spike.
Chief executives, including Nedbank’s Mike Brown and Discovery’s Adrian Gore, said in February that they would form three groups to contribute expertise and investments to help the country avoid a credit rating downgrade, accelerate small business and create jobs.
Companies have already raised R1 billion to support entrepreneurs and invest in small enterprises.
Investment
The goal is to raise R1.5bn and business wants the government to match its contributions to the fund.
“This is complemented by proposed mentoring that will be delivered by seasoned business leaders,” the Presidency said.
“The social investment of these business leaders will be of immense value to medium and small business owners accessing the funding. A structure has already been established to manage the fund.”
It said supporting the work of the interministerial committee on investment, options for co-investment were being explored.
“The aim is to leverage the strengths of the private sector both in terms of its experience and balance sheets, while strengthening state-owned companies.”
The office of the president said a work team on youth employment had been established, whose main task was to identify measures that needed to be taken to facilitate youth employment.
“The work stream has identified five areas it will focus on, including an audit of training and work opportunities in the private sector.”
BUSINESS REPORT