NYDA: Strikes may lead to job losses
Johannesburg - Strikes in the engineering, metal and fuel sectors could lead to job losses, the National Youth Development Agency said on Wednesday.
"NYDA is concerned about the impact that the ... strikes may have on businesses because of the key role that they play in alleviating South Africa's high unemployment levels," said spokesperson Refilwe Mphane.
Even though the engineering strike is over, it has caused backlogs which are still impacting on some companies. Unemployment predominantly affects the youth.
Loss of revenue and customer support, because of strike-induced shortages, has caused some businesses to close, Mphane said.
The NYDA's economic development executive manager, Tamari Mavasa, said the organisation is willing to renegotiate loan repayment terms with those who could prove that the strikes have impacted on their businesses.
The NYDA has provided business loans to 31 000 young entrepreneurs since its inception, she said.
The key role of business in job creation. Now there's an understatement. The alternative is state job creation. Unsustainable, inefficient and unproductive.
The key role in business - Is to provide the entrepenuer with profit, not creation of jobs, that flows out of the first.
Now if only we could take this lot seriously. The NYDA was responsible for the R100m "kissing" youth festival where the speakers didnt pitch up and they paid for everyone to stay in fancy hotels - at taxpayers expense. And now they are concerned about strikes? Hard to believe any of their young entrepeneurs were affected by strikes. Most of them would be small businesses with minimal staff. But I guess they have to find an excuse as to why they would default on the repayment of their loans, so why not blame the strikes? Gives them an excuse not to pay back on time. If you want young entrepeneurs to learn to stand on their own 2 feet, they should be subjected to the same market forces as everyone else. You cannot keep making excuses for their failure.