Posts Tagged ‘jobs act DA’

SA needs a plan to build an inclusive and growing economy

May 15, 2019

The release of the StatsSA’s Quarterly Labour Force Survey has revealed that the South African official unemployment rate has increased to 27.6%, and the expanded unemployment rate increased to 38%, translating to 9.9 million unemployed people in South Africa.

While the increase is marginal, it is indicative of an economy which is stagnant and shedding jobs at an alarming rate. This is compounded by a National Government that is devoid of a credible, long-term plan for jobs and the economy.

This current trajectory is unsustainable. South Africa simply cannot afford to lose any more jobs.

This 0.5% increase represents millions South Africans who cannot put food on the table or provide their families with basic necessities.

In the brutal face of 15% VAT, an increase in electricity costs, looming winter blackouts and unchecked corruption, it is clear that the current National Government is working against all attempts to build an working economy.

Despite this, the DA-governed Western Cape has again bucked the unemployment trend and is the only province to decrease it’s expanded unemployment rate by 0.4 percentage points.

The DA maintains that a job in every home is possible. More than 90% of households on the DA-governed Western Cape have a job in every home.

Instead of the ANC’s one-size-fits-all approach to fixing the joblessness crisis in South Africa, the DA proposes a complete reform of the economy.

South Africa’s current economic conditions are not conducive for job creation. South Africa needs an inclusive and growing economy.

It is for this reason, the DA introduced its ‘Jobs Act’ last month. The Act advocates for the protection and support of SMMEs by ensuring greater flexibility in the labour market through minimum wage exemption for businesses that fall into certain classifications.

This will guarantee that doors of thousands of small businesses remain open and protect thousands of jobs.

The Act will also do away with all unnecessary red tape that small businesses still have to comply with, this will make it easier for entrepreneurs to set up shop.

In addition to this, the DA’s Jobs Act will ensure the creation of a special forum for dispute resolution specifically for SMMEs.

One of the biggest obstacles to economic growth in this country is the rampant corruption and poor governance record on the part of the ANC.

Only if we take a hard stance against corruption, as in the DA governed Western Cape, will the country be able to attract investment to spur growth which creates jobs.

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Creating a job in every home

April 16, 2019

To jump-start the economic growth needed to create more employment we need to do something radically different. A DA national government would introduce a Jobs Act to serve as an economic stimulus shock.

The act will make special incentive offers open to foreign and domestic investors who meet a minimum employment threshold. In other words, a DA government will make doing business as easy as possible for companies that want to invest and create jobs in South Africa.

Our Jobs Act will provide the following for companies and individuals looking to either start new businesses or expand existing ones, and which create new jobs, including:

• The right to repatriate profits in the case of international investments. This is one of the biggest
barriers to attracting foreign investment that can create jobs and is a vital incentive our government
will offer.
• Relaxed foreign exchange controls for individuals/businesses willing to invest in the country to
provide assurances that they can access their funds as needed.
• Access to a specialised team of arbitrators, located in the Department of Trade and Industry
(DTI), who will assist medium-sized businesses in terms of the International Arbitration Act,
when necessary. This will assist medium-sized businesses who may find the cost associated with
arbitration prohibitive and will unlock the growth potential of the bill for these companies.
• A labour market flexibility exemption clause aimed at making the process to hire and fire employees
simpler and allowing potential employees to opt-out of the relevant sectoral minimum wage (which
would have a new minimum of no less that the old age grant) while still ensuring occupational
safety and the human rights of all employees are upheld.

Labour costs are one of the biggest inputs that businesses consider when investing, and this clause has the potential to unlock hundreds of thousands of jobs.