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Young communists reject youth subsidy

May 23 2012 08:51 Sapa

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Johannesburg - The Young Communist League of SA (YCLSA) rejects the youth wage subsidy as it is a bailout for businesses, it said on Tuesday.

"This is yet another strategy to cut labour costs, plummet real wages and cause the decline of the living wage and the living conditions of our people," spokesperson Mangaliso Khonza said in a statement after a meeting of its national committee.

"There is no evidence... that it will create more jobs for young people."

He said the implementation of the subsidy would lead to retrenchments, conflict, abuse and corruption by businesses.

The committee discussed the recent march by the Democratic Alliance to the headquarters of the Congress of SA Trade Union over the matter.

It described the march, which turned violent, as "cheap political point scoring".

"The DA should take responsibility for the violence that ensued as a result of their provocation."

The YCLSA said a pilot project on the youth wage subsidy by the University of the Witwatersrand (Wits) on behalf of the National Treasury had proved to be a failure.

"Through the Wits study (it was demonstrated that) employers are not interested in the administrative process involved, as also shown by their lack of interest in the existing skills levy," said Khonza.

In a statement, the National Treasury said this was not true.

It said it had commissioned the university in 2009 to investigate the dynamics of the youth labour market in South Africa.

The Treasury said 4 000 people in Gauteng, KwaZulu-Natal and Limpopo and some firms which hired young people were "sampled".

As part of the study, the research team tested the impact of a hiring voucher.

"Preliminary results collected a year after allocating hiring vouchers to young people showed that those with vouchers were significantly more likely to be employed than those without one," said the Treasury.

"The researchers are currently working on understanding the mechanisms through which vouchers impact on employability."

The study was also investigating a range of factors influencing the youth labour market and youth unemployment, including the impact of employment services, the behaviour of job searchers and labour recruiting firms, and the school-to-work transition.

"The researchers are still collecting the last wave of data... and therefore the final results of the study are not yet available," it said.

"It is the intention of the National Treasury and Wits University to publish the results of the study later this year." 

yclsa  |  youth wage subsidy  |  job creation
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