Firms welcome Zuma layoff plan

Johannesburg - The South African Chamber of Commerce and Industry (SACCI) on Wednesday broadly welcomed the State of the Nation address delivered by President Jacob Zuma, particularly where business concerns were addressed.

In responding to Zuma's address, SACCI CEO Neren Rau said: "The priorities are sound, and areas where business can expect proactive government action bode well for future trade and investment.

"The introduction of a 'training layoff' will address the dilemma facing business regarding retrenchments. It remains to be seen, however, whether the Setas will be able to provide the required support," Rau said.

Zuma said there was an agreement in principle between government and the social partners on the introduction of the training layoff.

"Workers who would ordinarily be facing retrenchment due to economic difficulty would be kept in employment, for a period of time and re-skilled," Zuma said.

SACCI said that undertakings to address serious issues related to crime and security were long overdue. "SACCI looks forward to measurable improvements in the reduction of crime at all levels and to improved efficiencies in the judicial system. SACCI will engage government on its detailed strategies and align our anti-crime programmes to theirs," Rau said.

The chamber also welcomed government's promise to address health and education. "Indeed, it is a key requirement of business that the workforce is healthy and skilled; albeit that it is recognised that measurable improvements will not be seen in the short term," it said.

SACCI was further encouraged by the proposals relating to the extension of telecommunications services to rural areas and by the prospect of reduced telecommunications costs. "SACCI has, through its membership, committed to addressing the challenge of rural connectivity and we look forward to government's support in this regard," Rau said.

"The State of the Nation address was comprehensive in its identification and prioritisation of the challenges facing South Africa currently. The tone of the president's address supported by the promise of improved economic activity and growth is encouraging to business and should promote business confidence," Rau concluded.

- I-Net Bridge