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Employment Stifled By Red Tape| News by Staff Reporter
New and existing legislation in SA is hampering performance in the labour market
Legislation in South Africa, particularly the new CPA, is having a negative affect on the country’s employment statistics as a climate of uncertainty prevails.
This is evident in the latest figures from Stats SA, showing that the number of jobless in the country has grown to 4,36-million or 25 percent of the population.
According to the Cape Chamber of Commerce (CCC) the fault lies with government whose policies and plans to create employment in South Africa are not producing results, and in some cases may even be contributing to the problem.
The Setas (Sector Education and Training Authority) are one such example, according to CCC President Mr Michael Bagraim.
Referring to the concerning employment statistics this week released by Stats SA, Mr Bagraim said, “I think we are also seeing the failure of the Setas in these figures.
“There have been some successes but they have not produced the artisans and technicians that are the backbone of a modern economy.”
Services Seta was recently placed under administration by Acting General-Director Gwebinkundla Qonde, suspending the Accounting Authority of the Seta and appointing Dr. S Moon as an Administrator.
The failure of the Setas is further highlighted, according to Mr Bagraim, by the fact that they had produced a training system that consisted of 75 to 80 percent short courses.
He said, paraphrasing Dr Blade Nzimande, Minister of Higher Education, that SA needed to go back to the tried-and-trusted apprentice system.
“It produced the artisans in the past and it can do so again,” Mr Bagraim said.
“I would like to assure the Minister that he will get the whole-hearted support of commerce and industry if he makes the apprentice system a top priority and disentangles it from some of the more onerous requirements of our labour legislation.”
He said the agricultural sector, which shed 24,000 jobs in the first quarter of this year, was evidently being negatively affected by government intervention in the labour market.
Mismanagement of land reform and the proposed changes to land tenure have no doubt contributed to the problem, he said.
“It has compelled farmers to mechanise and hundreds of good and productive farmers have packed up and moved to other countries…” he said.
“The solution to most of these problems is to go back to basics like the apprentice system and let commerce and industry get on with the job of growing the economy, creating jobs and the paying the taxes to fund the Government,” Mr Bagraim said.
“The interventions and the law changes are just not working,” he concluded.