State urged to save building jobs

Johannesburg - Retrenchments in the construction industry will “probably" continue into 2011, unless the government implements its construction plans, trade union Solidarity warned on Tuesday.

The body called on the government to deliver on its promises to tackle infrastructure construction projects, especially at municipal level.

Solidarity noted that an increase in confidence reported by the quarterly Building Confidence Index "is minimal and by no means an indication that the crisis in the sector has ended".

In addition to the latest gross domestic product (GDP) figures that indicate low growth in this sector, employment in the formal construction sector has dropped by 73 000 jobs since the fourth quarter of last year, Solidarity said.

From January to September 2010 the amount of completed construction work, measured in square metres, decreased by about 29% compared to the same period last year, it added.

"However, the current crisis in the construction sector also poses serious consequences for related industries," said Solidarity spokesperson Ilze Nieuwoudt.

"Cement sales for August to October this year were 7.4% lower than in the same period last year and 20.8% lower than two years ago," she said.

"If the government makes a concerted effort and gets the envisioned infrastructure construction projects going, there are many possibilities for job creation in this sector," Nieuwoudt said.

"The true test for the government in 2011 is to smooth out the problems that have been impeding progress in this sector, such as maladministration, irregular tender processes and late payments, so that the active focus can be on infrastructure development and job creation," she said.

Solidarity said Transport Minister Sbu Ndebele had announced earlier this year that nearly R700bn would be spent over the next three years on the development of roads, bridges and dams.

The development of a high-speed train system between Johannesburg and Durban is also being considered.