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South African Economy still faces tough time

Pretoria - Although South Africa's economy is showing growth, it continues to face uncertain times, says Deputy Finance Minister Nhlanhla Nene.

"There is no room for complacency and we continue to face a great deal of uncertainty during this current period of adjustment within the global economy," he said.

The deputy minister was speaking at an event hosted by the Sugar Industry Trust Fund for Education in Durban on Wednesday.

In the first quarter of 2011, South Africa's economy grew by 4.8 percent.

"While this recovery is stronger than a year ago in South Africa and in most other emerging market countries, its foundations are not yet sustainable; and it is still highly dependent on support from expansionary fiscal and monetary policies," said Nene.

Skills challenges and education still are issues to be confronted by the Republic and a vibrant economy is needed to address poverty and unemployment.

"Unemployment represents our greatest challenge: only 13 million South Africans, or 41 percent of the working-age population, have regular work," explained the deputy minister.

He expressed concern at the high level of unemployment among the youth at 42 percent. "Although the economy has recovered, employment is still below its pre-crisis level. Something must be done."

The New Growth Path, which aims to create five million jobs in the next decade, is estimated to create over a million jobs in infrastructure development and housing, while a further 500 000 jobs would be created in the agricultural sector and 350 000 in manufacturing. Tourism is targeting 225 000 jobs and mining 140 000.

The deputy minister said higher employment in the manufacturing sector, meanwhile, will rely on successful implementation of the second Industrial Policy Action Plan (IPAP2), which was also unveiled last year to provide new direction and impetus to South African manufacturing.

The reform of development finance institutions is also underway.

Nene said the Path will fail to meet its targets if an environment that is conducive to private-sector growth and business investment is not promoted. "This requires Government to provide economic stability and reduce the cost of capital through sound macroeconomic policies."

The deputy minister acknowledged the role played by the private sugar industry in its efforts to create opportunities, such as giving bursaries for studies in agriculture, sciences and engineering. "These areas are among the critical skills required to fuel our sustainable and inclusive economic growth."

The South African sugar industry generates an annual estimated average direct income of R8 billion, with direct employment within the sugar industry at approximately 77 000 jobs. - BuaNews

 
Cabinet Approves Judges Employment Amendment Bill

Pretoria - Cabinet has approved the the draft Judges' Remuneration and Conditions of Employment Amendment Bill, 2011.

The Bill seeks to amend the Judges' Remuneration and Conditions of Employment Act, 2001 (Act No. 47 of 2001), which provides for the appointment of judges, including the Chief Justice.

"President [Jacob] Zuma duly extended the Chief Justice's term of office for a period of five years with effect from 15 August 2011 in accordance with section 8(a) of the Judges' Remuneration and Conditions of Employment Act," said Cabinet in a statement on Thursday.

Cabinet further said it was confident in the President's legislative and constitutional authority in extending the term of office of the Chief Justice, and that the Judges' Remuneration and Conditions of Employment Act was constitutional.

"The Cabinet notes that section 165 (4) of the Constitution obliges organs of State, through legislative and other measures, to assist and protect the courts to ensure the independence, impartiality, dignity, accessibility and their effectiveness," it said.

The Bill applies to the Chief Justice and President of the Supreme Court of Appeal and provides that if either has not completed a period of seven years of active service, must continue to perform active service until either completes seven years or attains the age of 75 years - whichever occurs first.

The Bill also provides for the Chief Justice and President of the Supreme Court of Appeal to be discharged from active service at their request, subject to the approval of the President or through infirmity. - BuaNews

 
Labour dept ploughs billions into job creation

Pretoria - The Department of Labour says it has helped contribute towards job creation through intense investment in the Public Investment Corporation (PIC) amounting to billions of rands.

Speaking at a meeting of managers of the department from around the country, Labour Minister Mildred Oliphant said the department -- through the Unemployment Insurance Fund (UIF) and Compensation Fund (CF) -- has invested billions in the PIC, helping the country meet its job creation targets.

"The UIF has invested 68 percent that is R35 billion out of its R52 billion in commercial social responsible investment portfolio, which includes central government, municipalities and parastatal bonds and money market instrument that infrastructure projects that create and sustain jobs.

"Similarly, the CF invested in excess of R27 billion as at the end of March 2011 in compensation fund reserves with the PIC," said Oliphant.

These funds are in turn invested by the PIC through an investment agreement in commercial and social responsible projects carried out by Standard Bank, Eskom, Transnet and other parastatals involved in infrastructure projects that contribute to employment creation.

"The challenge is that the number of jobs created in these interventions is often reported by the loan recipient organisation instead of the main funder, the Department of Labour," said Oliphant. - BuaNews

 
Labour inspectors target security industry

Pretoria - The Department of Labour inspectors are to zoom into the private security industry next week to ensure compliance with all labour laws relevant to that sector.

The raid, which will take place from July 11 - 15, will see teams of inspectors clad in their new corporate uniform, meticulously going through company records, interviewing workers and management to ensure that nothing goes through the net in terms of sectoral determination for private security as well as health and safety compliance.

In terms of the law, employers in this industry must pay minimum wages listed according to job descriptions on the sectoral determination, which are increased annually in September.

They must also provide security officers, free of charge, with uniform, protective clothing and any ammunition tool or weapon required to use for self- defence or apprehension in line of duty.

The labour inspectors’ new uniform, together with their name tags, will ensure that they are identifiable when visiting workplaces for inspection and enforcement.

The corporate uniform will also reduce the blight of bogus inspectors, who pose as Department of Labour officials in workplaces with the aim of swindling employers. - BuaNews

 
Govt concerned about unemployment – Zuma

Johannesburg – President Jacob Zuma has told a Cosatu meeting underway that government was concerned about the growing unemployment in South Africa vowing his administration will work “faster” to build the type of economy that will enable South Africa to eradicate poverty, unemployment and inequality.

He addressed the first day of trade union federation Cosatu’s central committee meeting attended by more than 500 delegates in Midrand on Monday. The meeting is the largest gathering of the federation between conferences.

While acknowledging the challenge of unemployment especially among the youth, Zuma said government had made in-roads to address the problem since the world came out of economic recession that had seen nearly one million South Africans losing their jobs.

“As the National Planning Commission diagnostic report among others indicates, the poor are still marginalised and inadequate infrastructure delays social inclusion and economic growth,” Zuma said in reference to the document published by National Planning Minister Trevor Manual earlier this month.

“In essence the lot of working class is yet to improve further and in a more meaningful way as we also acknowledged at the April job summit with labour and government, we therefore have to work steadily at rebuilding our economic base and explore new opportunities,” he said.

Government also wanted an economy that would allow all South Africans to realise their right to an environment that was not harmful to their wealth and wellbeing.

Also speaking at conference earlier, Cosatu President Sdumo Dlamini said the federation was concerned about the growing unemployment figures in the country calling on the state to further strengthen its intervention to address the challenge.

“We are worried that more than one million people lost their jobs between 2009 and 2010 in our country and as a result of this perpetual job loses our people continue to be faced by poverty,” he said, adding that it was the youth who continued to form the majority of the unemployed.

But Zuma told the delegates that the jobs fund released recently by Finance Minister Pravin Gordhan  will aim to operate as a catalyst for innovation saying its activities will directly contribute to job opportunities for the country’s unemployed.

“It will provide the much needed entrepreneurship and skills for our economy. We are also re-industrialising the economy, particularly the manufacturing sector, emphasising research, innovation and skills development.”

Small businesses were being merged and tax breaks provided to companies wishing to invest while protecting local industry at the same time. Government also plans to use the more than R800 billion massive infrastructure programme in the next three years to broaden job opportunities for the unemployed youth.

In addition, Zuma said, government was confident in meeting the target of creating 300 000 jobs in the green economy over the next decade through green initiatives that aimed at reducing South Africa’s carbon footprint and the impact of climate change.

These issues were expected to take centre stage as South Africa prepared to host the 17th Congress of Parties on climate (COP17) in Durban later this year.

On Monday, Zuma went on to say that government will also use the new growth path framework for the country to address poverty and create decent work. Cosatu had welcomed the policy whose implementation Damini said the federation had been fighting for, for many years.

“However, there will always be a however Mr President…we fill the growth path as presented should focus on changing the structure of the economy and we also argue that the government growth path should focus on the economy that is transformative and distributive,” he said.  – BuaNews

 
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