Pravin Gordhan on Labour Legislation:  DA welcomes Minister Gordhan's support on labour reform

The Democratic Alliance (DA) warmly welcomes Finance Minister Pravin Gordhan's admission that "we may have to change the way we see the labour dispensation in South Africa."  The Minister added that if we do not make the necessary changes, "we will not be able to make the breakthrough we need to create jobs in South Africa."

The time is certainly ripe for a serious debate on our current labour dispensation. The latest Stats SA quarterly labour force survey indicates that official unemployment has surged to 25.7%, with 174 000 more people added to the ranks of the unemployed in the last three months. Since 2009, when President Zuma first took office, South Africa has shed a net total of 902 000 jobs.

The DA has been advocating for a comprehensive jobs and growth-oriented policy revision. This would include the relaxation of labour regulations, a tax holiday for newly established small scale enterprises, a general wage subsidy for employers, youth opportunity vouchers to help young people study or start businesses, support for developing industries through industrial development zones and export processing zones, and a drive to reposition South Africa as a preferred investment destination.

Minister Gordhan's words are a step in the right direction. The DA will continue engaging with the Finance Minister and other members of cabinet to bring about a pro-jobs agenda.

Statement issued by Ian Ollis MP, DA Shadow Minister of Labour, August 15 2011

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