The National Employers Association of South Africa (NEASA) feels strongly about the fact that President Jacob Zuma should use his State of the Nation Address (SONA) on Thursday to address the challenges of unemployment and job creation.
‘It’s important for the President to elaborate on government’s efforts to encourage job creation. All industries are losing jobs and unemployment is on the increase,’ says NEASA CEO, Gerhard Papenfus.
Despite a marginal improvement with regard to the unemployment rate towards the fourth courter of last year, the labour force decreased by 235 000 persons between the third quarter of 2012 and the fourth quarter of 2012.
‘The country’s system of collective bargaining and minimum wages has in fact become a deterrent to job creation and job retention. We can no longer afford measures that will reduce jobs in any industry,’ Papenfus said.
South Africa cannot afford to lose jobs and then to introduce social schemes to sustain those that could otherwise have made an economic contribution. NEASA is confident that extremely innovative measures are needed to address inequality, poverty and unemployment.
‘Our current structures of collective bargaining, minimum wages and rigid labour laws are counterproductive and not conducive to address any of our national challenges,’ says Papenfus.
NEASA looks forward to the President setting a vision of a labour market that will make South Africa an attractive destination for entrepreneurs and investors.
"That is the only sustainable way to eradicate inequality and poverty" Papenfus added.
For more information please contact:
Sya van der Walt
082 332 9512
NEASA – Established in 1996, the National Employers Association of South Africa is the country’s largest employers’ association registered in terms of the Labour Relations Act. NEASA focusses on collective bargaining, extensive IR services and specialized legal representation at all dispute resolution forums to even the most remote areas in South Africa.