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Neasa said the current situation in the metal industry is crippling efforts to bring about economic growth.
"South Africa has an unacceptably high unemployment rate and regardless of the reasons for this, we have to find a solution for unemployment and create jobs," said Neasa CEO Gerhard Papenfus.
South Africa is currently making no dent in the unemployment crisis. In February there was a net loss of jobs of over 100 000.
"Private sector employment growth, which is the only real form of employment growth, is overall negative. Where there is an increase in employment in the formal sector is in the ‘community service’ sector, which is predominantly public sector employment," said Papenfus.
"That does not solve the problem, but rather increases it."
Papenfus believes an important reason for the failure to create jobs in SA is a constant decline in business confidence.
Not feeling welcome
Businesses no longer feel welcome in South Africa and as long as that sentiment exists, there will be no real improvement in private sector job creation, he said.
"There is this constant notion that making a profit by definition illustrates some form of wrongdoing towards employees. Business owners almost feel embarrassed and ashamed of being successful," said Papenfus.
"South Africa has become a nation that is boasting about how many people are recipients of social grants instead of boasting about how successful efforts are to create real jobs and the prosperity of citizens and business."
He said businesses always respond negatively to government interference by simply not employing.
"This is quite evident when one looks at recent figures pointing to the fact that the metal industry has lost 250 000 jobs in the last five years and currently has an annual trade deficit of R50bn," he said.
"It would not be feasible to marry the demands of workers in respect of a 'living wage' and the urgent need to find solutions to sustain jobs and for business to create employment opportunities.
He criticised the current bargaining dispensation that negotiates actual wages and conditions of employment instead of industry minimums only.
"There are employees who, through these negotiations, want to improve their standard of living. That we as employers understand and respect," said Papenfus.
"But then there are many employers who already simply cannot afford the existing unaffordable arrangement, let alone the further improving of benefits."
