Glimmer of hope for retrenched
Economic recovery uncertain
August 21, 2009
By Gaye Davis
Workers facing retrenchment will be able to sign up for training and earn a basic wage from as early as next month, Economic Development Minister Ebrahim Patel said yesterday.
The training lay-off scheme will be available to people earning up to R180 000 a year and they will earn an allowance of half their basic wages, up to R6 329 a month, while employers must ensure that death, disability and funeral benefits continue to be paid-up.
Workers would spend up to three months on the scheme. Sector Education and Training Authorities have been asked to identify and finance training courses to be decided on by employers. The CCMA will help unions and companies draw up training lay-off agreements and has trained about 250 staff to do this.
Financed by a R2.4 billion National Jobs Fund, the scheme - South Africa's first - is one of six steps agreed to so far by the government, business and labour to try to offset the impact of the recession.
Briefing the National Assembly on progress made so far, Patel said Sars was cracking down on illegal imports and customs fraud that had led to many job losses, while Competitions Commission probes into price-fixing and food cartels had been stepped up to ease cost pressures on hard-pressed consumers.
Other measures include:
Support for distressed companies in the motor industry - on condition they put retrenchments on hold for as long as they received it;
A rescue package for the clothing and textiles sector;
Incentives
Increased incentives for manufacturers of materials and equipment needed for the government's R787bn infrastructure programme;
A commitment by the government to pay money it owes business contractors within 30 days;
Credit and working capital of R6bn over the next two years from the Industrial Development Corporation (IDC);
The formation of the National Debt Mediation Association to set rules and standards for restructuring consumers' debt ; and,
Discussions with the big four banks about improving the flow of credit.
Patel painted a bleak picture of the current state of the economy and its prospects.
"The international economic crisis and local recession threatens to wipe out our economic gains. If the trends continue, we could find ourselves back to where we were five years ago," Patel said.
Prospects for a global recovery remained uncertain, while international experience showed that even when economies improved, growth in jobs lagged, sometimes by a considerable period, Patel said.
The framework response to the "deepest and most serious economic crisis in at least the past 80 years" aimed at protecting the poor and the economy's ability to grow and create jobs in the future.
Finding ways of helping women and workers in rural and informal sectors, would be dealt with, as well as ensuring the government's R787bn infrastructure programme remained on track because it was needed to cushion the economy while private sector demand was falling.
Patel said a big challenge was not the amount of money that would be spent, but ensuring the quality of the spending "to ensure that we minimise leakages" and ensure jobs were created.
|
|
