Manuel endorses Gordhan view on labour

2011-08-17 18:02

Cape Town - Minister in the Presidency Trevor Manuel on Wednesday appeared to endorse Finance Minister Pravin Gordhan’s suggestion that labour laws might need to be relaxed to create more jobs.

At a conference in Johannesburg earlier this week, Gordhan said it might be necessary “to change the way we see the labour dispensation in South Africa“.

Laws might need to be relaxed to allow young people to enter the workplace and gain skills and experience at lower wages, but not at the expense of people who already had jobs.

Unless such changes were made, “we will not be able to make the breakthrough we need to create jobs“, Gordhan said.

In the National Assembly on Wednesday, Opposition leader Athol Trollip asked Manuel whether he agreed with Gordhan’s “assertion that we would have to look at restrictive labour legislation if we are to create more jobs in the economy“.

Manuel replied that he had studied the text of Gordhan’s speech, and this was but one snippet.

However, he then said: “I think all what he said is a position that I would endorse wholeheartedly. We must let nothing stand in the way of job creation in this country.”

  • Nasdaq7 - 2011-08-17 18:15

    There you have it. If you do no work, you have absolutely no chance of getting experience, gaining skills or money to start your own business or to study at an institution to improve your education. The only way unemployed people can hope to get working experience is to work for minimum wages or LESS. You have to start somewhere in life. No one can build a career without some working experience.

      visarend - 2011-08-17 20:28

      I am in full agreement here on this one . The path is split , one direction is to continue on current path , with it's labour laws and steadily increasing the unemployment pool , OR let's relax on some of these labour laws to encourage local , and foreign investors to create employment opportunities . Little money , will always be better than no money at all . Even with little money , serious minded people , will get on in life . The alternative is that the unemployed will eventually turn to unrest , as they have nothing to loose in any case .

      Netherlands - 2011-08-18 04:52

      Problem with South Africa is.... the person WITHOUT ANY SKILLS.... wants the SAME MONTHLY INCOME AS THE OWNER of the Business!!!!!!!!!!! That is problem No 1... TILL THEN.,....never the TWAIN SHALL THEY MEET!!!!!

      Lourens - 2011-08-18 08:25

      My Gran used to say that there is only one job where you can start at the top. Become a grave digger.

  • scud - 2011-08-17 20:16

    Is it expecting too much for intelligent ministers like Manuel and Gordhan to actually make a stand and clearly state the obvious,instead of their fearful,vague,timid innuendos?

  • andrew - 2011-08-17 20:30

    oh no why has manuel opened his mouth?

  • Crime Buster - 2011-08-18 07:33

    Job creation and the eradication of pilfering of state funds is the two factors killing our economy (there are perceived many others too ....) I have tried several channels to arrange a meeting Mr. Manuel but I am blocked by his gate-keepers as well as Mr Chabanes, Min Dlamini, Min Sexwale, Mr Pravin, 8 MEC's, and many others! We have realised from audit functions we have been doing the past 18 months a mechanism to create jobs - possibly as many as 5000 in the entire country for young unemployed graduates and "matriculated school leavers". The costs to employ these resources will not cost an additional cent and we will then also have the opportunity to generate further savings that can be used for development of infrastructure loke houses, roads, clinics and schools - even support on the NHI. Our solution could cause many losses in voter numbers once implemented but on hindsight provide us with funds to create a better SA and rid some serious fraud that is currently not visible to Joe on the street! I need to meet with Mr Manuel - or do I take this solution (with me) across the pond! Any assistance to meet either Mr Manuel/ Chabane/ Pravin will be appreciated.

      Chronoman - 2011-08-18 08:56

      @Crime Buster, it was a sad day when people, real people, were all of a sudden classified as "resources". That view has unfortunately permeated the workplace and has succeeded in forcing employer and employee apart. A worker is not a resource and not even a "human" resource, not an "it", but a person.

      Benny - 2011-08-18 11:16

      Put it on a blog or website at least Crime Buster. If the plan is as brilliant as you say it would pay to disseminate it, no?

      Martin - 2011-09-05 13:32

      Yes, post it on a blog. We would all like to read it. I am wondering how you will employ 5000 people without any cost. Wish I knew how to do that.

  • Monjaro - 2011-08-18 07:45

    I suppose that Trevor is now alos a coconut or sell out or white puppet for these views? FYI... I couldn't agree more with labour laws being relaxed, it's certainly one major step in incentivising entrepreneurs to take risks again, but a lot more needs to be done if we want to compete with the BRIC countries.

  • - 2011-08-18 08:36

    Which "white economists"are you referring to?I see plenty of non-white economists on TV.Are they not corrupt because of the colour of their skin?Drivel.

  • Benny - 2011-08-18 09:18

    Neo liberal finance minister agrees with neo liberal ex- finance minister that workers must have less job security and worse conditions for less pay so that workers can prosper. Didn't these creeps read any Orwell? Must also note that I have yet to see a single commenter in favour of less labour regulation actaully say he will go create some jobs when his wish comes true. If it does come to pass there will probably be a brief blip in job creation inversely proportional to the backslapping in the wine bars and the chaos created by COSATU's general strike. The unrest will probably carry the can for the continuing dismal performance of the job market while contributing factors including: our rich world trading partners are broke, cheaper labour here will simply force our competitors to work their serfs harder, automation, lack of domestic markets (due to low wages) etc. etc. continue to intensify. You're digging your graves yuppies. You don't know what you're messing with.

      Dave - 2011-08-18 13:00

      Speaking as a small business owner, I will be more adventurous in starting new initiatives if the labour legislation is more relaxed. We have a successful business that employs people. Their jobs are safe. But starting a new initiative that might or might not work is hard if it is expensive to shut it down if it does not work. A new initiative is expensive enough to setup without a time consuming and expensive retrenchment processes. That is not the worst. Dealing with poor performing workers is even more expensive. So as a business owner. If things are going fine why take the chance? The country should want me to take a chance. But they are not encouraging us to do that. Why not tax breaks on new ventures? Why not slightly relaxed labour legislation? Why not a reduction on no value adding red tape?

      Martin - 2011-09-05 13:28

      Benny, two things, jobs aren't created. No person has ever created a job apart from nepotists. Don't ask a business person how he can create a job, because we don't know. What we do know is how to grow our businesses through new initiatives and projects. These in turn lead to added staff requirements. We don't go out trying to create jobs, it comes naturally with growth. Ask us what you can do to help us grow our businesses and the relaxation of labour regulation will be right up there. So, in light of that, my second point: If labour regulation is relaxed sufficiently our business will definitely expand more rapidly which will lead to additional employment opportunities. I can promise you that much.

  • Ian - 2011-08-18 10:10

    too late she cried, waving her wooden leg

  • national - 2011-09-06 10:38

    At last Pravin & Trev woke up. Salaries are the profits of any business,'you reap what you sow'Very difficult to find realible workers these days.half loaf is better than none.

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