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Labour Q&A with Terry Bell
Fin24 user Vishnu Reddy says for South Africa to address the unemployment issue the government needs to exclude small business from the unions and the bargaining process entirely:
He lists his suggestions and concerns:
1) Small business should be defined as an entity of 200 peolpes or less.
2) Unfair employment labour practises should be adminstered by the CCMA.
3) Retrenchment of employees of 6 mnths employment should be given a 6 weeks retrenchment package with no strings attached, etc.
4) Employees earning the basic salary or less should be levied - PAYE - (nominal amount) which should be paid by the employer which would go to the fiscus.
5) One should note that small businesses are the greatest imparter of skills to the employees.
6) Hiring and firing should be the norm for the success of small business, job creation would be on the upward trend, and those retrenched would be able to start their small enterprises which is a win-win scenario.
7) The government has not been thinking outside the box and are only tinkering with the existing labour legislation thus appeasing its allies while the unemployed are losing their dignity on hand outs and poverty. Is the aim of the government to keeps its citizens bound by the chains of poverty so that they can govern till the "second coming of Jesus Christ"?
8) The unions' sole concern is the employed because of the material benefits that they accrue and not the millions of unemployed that they claim to have compassion for.
9) Would on say that the government is a representative of all its citizens or is a representative of a minority grouping represented by the unions and its allies?
10) Impartiality from the government in addressing this pressing issue would breathe new life into this economy and the majority of its citizens.
Terry Bell responds:
Quite apart from defining - number of employees, turnover, effective ownership etc - what comprises a small business, current legislation allows any business to seek a waiver from bargaining council agreements if it is shown that the entity cannot afford centrally agreed wages and conditions. This seems to me to be the only fair way forward (if properly administered) since large companies could take the small company route by operating smaller subsidiaries or even by outsourcing.
The business of unfair labour practices is already the province of the CCMA. However, I think you raise interesting issues in your points 3) and 4), but I am afraid I don't understand by implying that hiring and firing is not the norm of any, let alone small, business. If you mean giving people training and then turning them loose to go it alone, that in itself has problems in a market glutted with surpluses, unless you are referring to scarce skills that are not generally picked up on the shop floor.
I agree that government should "think out of the box" if by that you mean not sticking to often failed formulas and the idea of keeping people in thrall via handouts is appalling. But employed workers, often organised in unions, are the unofficial social welfare net for many unemployed.
The government is also, on all the evidence available, not in any sense captive of the unions. Quite the reverse, which is why we are seeing the growing rebellion in the ranks of Cosatu unions.
Impartiality by government? Any government? Perhaps I am cynical, but I can't see that happening.
Regards
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Fin24 user Vishnu Reddy says for South Africa to address the unemployment issue the government needs to exclude small business from the unions and the bargaining process entirely:
He lists his suggestions and concerns:
1) Small business should be defined as an entity of 200 peolpes or less.
2) Unfair employment labour practises should be adminstered by the CCMA.
3) Retrenchment of employees of 6 mnths employment should be given a 6 weeks retrenchment package with no strings attached, etc.
4) Employees earning the basic salary or less should be levied - PAYE - (nominal amount) which should be paid by the employer which would go to the fiscus.
5) One should note that small businesses are the greatest imparter of skills to the employees.
6) Hiring and firing should be the norm for the success of small business, job creation would be on the upward trend, and those retrenched would be able to start their small enterprises which is a win-win scenario.
7) The government has not been thinking outside the box and are only tinkering with the existing labour legislation thus appeasing its allies while the unemployed are losing their dignity on hand outs and poverty. Is the aim of the government to keeps its citizens bound by the chains of poverty so that they can govern till the "second coming of Jesus Christ"?
8) The unions' sole concern is the employed because of the material benefits that they accrue and not the millions of unemployed that they claim to have compassion for.
9) Would on say that the government is a representative of all its citizens or is a representative of a minority grouping represented by the unions and its allies?
10) Impartiality from the government in addressing this pressing issue would breathe new life into this economy and the majority of its citizens.
Terry Bell responds:
Quite apart from defining - number of employees, turnover, effective ownership etc - what comprises a small business, current legislation allows any business to seek a waiver from bargaining council agreements if it is shown that the entity cannot afford centrally agreed wages and conditions. This seems to me to be the only fair way forward (if properly administered) since large companies could take the small company route by operating smaller subsidiaries or even by outsourcing.
The business of unfair labour practices is already the province of the CCMA. However, I think you raise interesting issues in your points 3) and 4), but I am afraid I don't understand by implying that hiring and firing is not the norm of any, let alone small, business. If you mean giving people training and then turning them loose to go it alone, that in itself has problems in a market glutted with surpluses, unless you are referring to scarce skills that are not generally picked up on the shop floor.
I agree that government should "think out of the box" if by that you mean not sticking to often failed formulas and the idea of keeping people in thrall via handouts is appalling. But employed workers, often organised in unions, are the unofficial social welfare net for many unemployed.
The government is also, on all the evidence available, not in any sense captive of the unions. Quite the reverse, which is why we are seeing the growing rebellion in the ranks of Cosatu unions.
Impartiality by government? Any government? Perhaps I am cynical, but I can't see that happening.
Regards
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
