ANC, Cosatu youth grant clash on cards

Feb 04 2013 11:00

The grant aims to subsidise the wages of young workers entering the job market. Students at the University of North West. (Photo: Hannelie Coetzee, MCSA)

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ANC wants speedy youth wage subsidy

Cape Town - The ANC will throw renewed energy into the contentious youth job seekers' grant with a significant announcement likely to set it on a warpath with Cosatu, reports Business Day.

A senior government source told the news agency that it was a matter of articulation, but a form of the subsidy would be announced on Monday.

The source, who attended the ANC’s three-day lekgotla last week, said it was felt that the unions could not be allowed to hold the party to ransom over the issue.

On Friday, ANC head of policy Jeff Radebe said: "We are hoping that before the state of the nation address, or soon thereafter, there must be a bilateral between the ANC and Cosatu in particular to deal with this issue."

Radebe said the government wants to move with speed on the youth job seekers' grant, but will not rush into it without consultation.

Cosatu believes the subsidy will encourage companies to hire cheap young labour just for the subsidy, and will retrench older workers.

It suggests that improving basic education, skills development, the green economy and local procurement will help more.

The DA marched to Congress of SA Trade Unions headquarters, in May last year, to call on the trade union federation to support a youth subsidy as a way of alleviating youth unemployment but it was marred with violence.

The Treasury has set aside R5bn for the subsidy to create 423 000 new jobs, but Cosatu's opposition has stalled its implementation for nearly two years.

The grant aims to subsidise the wages of young workers entering the job market.

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cosatu  |  anc  |  youth wage subsidy  |  jobs



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