Wage subsidy talks to be speeded up

2012-06-11 13:59
Ebrahim Patel (File, Werner Beukes, Sapa)

Ebrahim Patel (File, Werner Beukes, Sapa)

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Johannesburg - The process of adopting a youth wage subsidy is being speeded up, Economic Development Minister Ebrahim Patel said on Monday.

Replying to a written parliamentary question from Democratic Alliance MP Kenneth Mubu, Patel said moves were underway to accelerate discussions at the National Economic Development and Labour Council (Nedlac).

"We have elevated the discussions to senior level with the constituents concerned to ensure that the discussions are concluded expeditiously," Patel said.

Talks have consistently deadlocked at Nedlac, with Cosatu opposing the move.

Cosatu has rejected the youth incentive scheme, arguing that employers will hire younger workers at a lower wage at the expense of older, more experienced employees.

Cosatu and Democratic Alliance members clashed in Johannesburg last month after the opposition party led a pro-youth wage subsidy march.

Parliament's finance committee has been told the design of the subsidy will be completed by the end of June.

In his reply, Patel said the Nedlac process would be accelerated, particularly during June, which had been called youth month.

"Based on progress, a report will be submitted to Cabinet to finalise the matter," he said.

Read more on:    ebrahim patel  |  youth wage subsidy

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