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New layoff scheme coming soon

Jun 25 2009 08:49

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Cape Town - A draft proposal for a training layoff scheme could be unveiled next week, President Jacob Zuma indicated on Wednesday.

Speaking in the National Assembly during debate on his budget vote, Zuma said the global recession required political parties and other sectors to work together.

"We are now being hit by the full force of the recession," he said.

Many jobs had been lost. The Quarterly Employment Survey of formal sector businesses reported that the first quarter of 2009 saw the loss of 179,000 jobs.

The most affected sectors were retail and wholesale, financial, manufacturing, mining, and construction.

"While we know that our efforts cannot fully compensate for the impact of the crisis, we have intervened in various ways, as agreed in our framework agreement on the response to the crisis," Zuma said.

The Industrial Development Corporation (IDC), the trade and industry, labour and public works departments, and others, were working hard in response to the challenge of job losses.

"Government will be making a further intervention, a final draft proposal for a training layoff scheme to our social partners early next week," he said.

The point of the scheme was to keep at least some workers in their jobs and train them during this slow period.

They would receive relevant training, benefits, and an allowance in place of their wage, for a period of time, Zuma said.

- Sapa

 
 
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