Youth Wage Subsidy: Cosatu seems to have more authority than the President

The Secretary-General of the ANC Gwede Mantashe has now come out against the Youth Wage Subsidy. This is the latest indication that Cosatu is calling the shots in the tripartite alliance and seriously undermining President Jacob Zuma's authority (see Business Day report).

In February 2010 the President stood before Parliament and announced that the state would "subsidise the cost of hiring younger workers, to encourage firms to take on inexperienced staff." Minutes after his speech Cosatu General Secretary Zwelinzima Vavi told reporters that he objected to the Youth Wage Subsidy.

It is a sad state of affairs that today the President's proposal has been shelved while Mr Vavi's opposition to the policy has prevailed. The direct cost of this is borne by the more than 400 000 young people who will not benefit from the subsidy.

There were indications that the Youth Wage Subsidy was rejected by the ANC at their policy conference last month but the final nail in the coffin came yesterday when Gwede Mantashe said that the R5bn budgeted for the subsidy should be used to fund other initiatives.

It is now clear that Cosatu's authority in the tripartite alliance trumps the needs of our most desperate citizens: the unemployed young people who simply want an opportunity to get a foot onto the employment ladder.

On Saturday, the launch of the DA's Jobs Campaign will show the country that there is a real alternative in South Africa. The DA has the plan, the political will, and the determination to implement a Youth Wage Subsidy at national level and grow this economy to help millions of jobseekers find work.

Statement issued by Tim Harris MP, DA Shadow Minister of Finance, July 26 2012

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