The ongoing job losses demand bold and decisive leadership from government and all social partners
2 August 2017
COSATU is perturbed and alarmed by the Household Financial Wellness Index released by both the University of South Africa and Momentum that shows that the country is likely to lose up to one million jobs by the end of the year if the stagnant economic growth is not addressed.
This is worrying because government so far has remained indecisive in the face of the massive retrenchments that are affecting all sectors of the economy. COSATU reiterates its call for a Jobs Summit that will engage on how to stop job losses, create new jobs, support the unemployed; and ultimately formalise the informal sector.
The Jobs Summit can assist in allowing all social partners to work together and come out with common positions on how to deal with issues like trade deficit, employment creation and the overall local economic activity. We can also explore ways of finding common ground in industrial policy and incentive measures to create and increase local manufacturing capacity.
We all need to discuss how to give incentives like tax relief targeted at low-income workers, the poor and companies in distress. This will include COSATU’s proposals on the idea of an employer of Last Resort (ELR). We will also place on the table proposals regarding the role of the SOEs in the creation of decent jobs.