News24

Zille hands over memo for youth wage subsidy

2012-09-10 14:37

Pretoria - DA leader Helen Zille handed over a memorandum to the presidency at the Union Buildings in Pretoria on Monday, requesting the introduction of a youth wage subsidy.

Deputy Minister in the Presidency Obed Bapela accepted the memorandum on the presidency's behalf.

"The government's role is to open doors," Zille told Democratic Alliance members gathered on the Union Building lawns.

She said R5bn was budgeted for the wage subsidy.

"Many of them may have already been working if the original deadline for the implementation of the youth wage subsidy, April 1 2011 had been honoured," Zille said.

"Where it has been tried in the world, it has been successful."

Success rate

Zille said the DA in the Western Cape took money from other budgets more than two years ago to implement the subsidy. More than 70% of these youths then went on to get permanent jobs and others went on to study.

"It has been enormously successful."

DA supporters gathered on the lawns on Monday to demonstrate in support of the subsidy.

Demonstrators wearing T-shirts bearing the word "unemployment" were led in song and dance by a youth leader standing on the back of a truck.

Elsie Thubana, 20, said she joined the demonstration because she too was unemployed.
"I hope this will make a difference."

Help from Helen

Wellington Sigena, 42, also attended despite being wheelchair-bound. He said he would love to work at a hospital to help fix problematic administration and help other people in wheelchairs.

"I want to have a job. Government must train us."

Mary Mashabane, 69, of Cullinan, was on the lawns, ready to demonstrate from 06:00.

"I think Helen Zille will help us today. We will wait here until we get an answer."

She said the people in her community had no jobs and the children struggled to go to school.
After the memorandum was handed over, supporters began piling into taxis or relaxing in the shade.

Comments
  • linds.ronhouse - 2012-09-10 14:51

    The youth wage subsidy is a "race to the bottom." It should be rejected for five key reasons: 1. It cannot provide sustainably jobs because it is temporary in nature. 2. Companies will get rid of older and more expensive (unsubsidised) employees in favour of younger low paid and subsidized employees. 3. Just when the younger employees gain experience and start to demand living wages, employers will simple recycle them when the subsidy ends after 2 years. 4. It will result in reduction of already low wages, while increasing profit margins (the rich will become richer while the poor become poorer). 5. In the long term it will result in job loss. The same way deregulation, privatization and free enterprise system introduced after 1994 resulted in capital flight when it's proponents said it would attract foreign direct investment (FDI).

      lionel.defrontignac - 2012-09-10 14:57

      This will give youngsters job experience; companies that seek to maintain levels of production will continue to employ such people and not recycle them...This is a form of socialism, so I'm not sure why you bring in the beef about free enterprise.

      michael.rampatla - 2012-09-10 15:01

      If u are against the programme, what would u suggest must be introduced to cut the unemployment and the non expirienced undergraduate youth

      linds.ronhouse - 2012-09-10 15:14

      We already have an internship programme to give youngsters job experience.

      devon.meredith.31 - 2012-09-10 15:55

      And how is that going so far?

      nosiphom.mazibuko - 2012-09-10 16:14

      Lind.ronhouse you are wrong on your analysis. Let us look at your point number 2- The LRA is against bumping, so no company would dare do it. Some might be tempted, yes, but the effort to do it would be too much. The company would be dragged to the CCMA,a and lose. Your point 3 - No company would like to be a "training institute". Remember during the training pahse the trainees are not that productive, actually it "costs" the company. Work needs to be redone, etc. After two years they would be competent enough to deliver. Which stupid manager would get rid of them - when they are beginning to be productive and opt to train new people, wasting somebody eleses time? Companies are in a business of making money, not perpertually training new people - it does not make business sence! 4 - Whose wages will be redued? and by whom? 5: Privatisation meant that the companies focus on what they are supposed to do and be efficient rather than just employing people for the sake of it. If a company is not making money, surely there is no reason it should exist. Profiteble companies grow rather than shrink. Strikes (illegal ones) and uncertainty chases investors away to places where they can do business with certainty. There is no policy clarity in SA, hence the low investment. The capital flight of 1994 was a natural reaction as companies did not know what would happen and therefore they had to do what every sane investor - including you pension fund, etc, does - minimise risk!

      linds.ronhouse - 2012-09-10 19:03

      @Nosipho, I'd really like to engage you further on this subject and refer you to some very useful literature. Mail me lindsronhouse at gmail dot com What you normally get on News24 are emotional insults with no substance at all.

  • michael.vanrheenen.9 - 2012-09-10 14:52

    How peaceful was that...? All the way to the Union Building and then handing over the memorandum... What a lovely peaceful country this would be if Zille was in power...

      desertratbkf - 2012-09-10 15:28

      Absolutely. No pangas and knives and barbarism. Just civilised people demonstrating. Humans!

  • linds.ronhouse - 2012-09-10 15:00

    It must also be said that the youth wage subsidy is not a DA idea as many people seem to assume. It was first proposed by the ANC and National Treasury started researching it, resultd in a white paper. The paper went to Nedlac where the DA also sits. Cosatu was the only member of Nedlac to reject the proposal.

      luke.dekoker - 2012-09-10 16:05

      Yep, it may not be a DA idea but at least we all know if they take on something like this they will see it through..not "researching" it. Naturely cosatu will reject this idea as these youths will be "non-union"; "non-paying" employees.

      Stefan Van Der Spuy - 2013-11-13 11:08

      It might not be the DA's idea but they have been implementing it in the Western Cape for over two years!

  • Duncan Colter - 2012-09-10 15:00

    When a process had been tried and failed (over and over) there are those who insist the process will work here. These same people insist a tried and successful process cannot succeed. (read the comments so far and the rest to follow) No logic in the thinking. No rationality in the argument. Just a will to fight for fightings sake

  • dnxumalo2 - 2012-09-10 15:02

    Reason why people will not agree with Zille is because there is no tender opportunity in this subsidy and there is no likelihood for money to be carried in bags to the bush for sharing.

  • werner.pretorius.12 - 2012-09-10 15:14

    DA moet eerder memorandum oor Regstellende Aksie oorhandig. Probleem is net die DA ondersteun regstellende Aksie!!

  • Fela - 2012-09-10 15:15

    The DA has stolen the ANC youth subsidy idea and now claim it as their own...opportunists.

      desertratbkf - 2012-09-10 15:30

      So why wont they implement it? You have to follow up on everything cANCer is supposed to do. I'll bet they wont implement it, because the R5b budgeted, is no longer there. Its stolen!

  • pierre.walt - 2012-09-10 15:17

    What about us white middle age jobless people? We also cannot manage to find jobs. I will gladly doing the miners work but are not allowed to do so. Many companies use SAA and Woolies tactic but we do not know about it.

  • osmaseko - 2012-09-10 15:31

    I fail to understand as to why is Zille hi-jacking this idea as it was first raised by the ANC and there are deliberations about it at nedlac....can someone please tell me why cause she is part and parcel of the process at Nedlac?

      joseph.b.nkosi - 2012-09-10 16:58

      Zille & DA are not hi-jacking anything. THey are simply insisting that the ANC - who proposed the YWS in the first place - follow through on their promise and implement it already. Zuma, ANC, Cosatu and Nedlac are stalling and stalling on something that they promised to deliver from 2010 already. The DA is doing its job as opposition - trying to ensure that the government lives up to the promises it makes to the people. Go Mrs Zille! Viva DA, viva! http://www.news24.com/SouthAfrica/Politics/Motlanthe-No-word-on-youth-subsidy-20120815 http://www.news24.com/SouthAfrica/Politics/Cosatu-controlling-alliance-claims-DA-20120726

      Gerda Malherbe - 2012-09-10 17:37

      no, you fool, because, as with all their bright spark ideas, the anc has produced nothing. All talk talk talk

  • ashliegh.adams - 2012-09-10 15:50

    go zille make this country a better place

  • rich.mashimbye - 2012-09-10 16:45

    Wage subsidy is the most reasonable option in connection to reducing unemployment; Zille is right, where it has been implemented it worked. Even the Zuma admin (which ironically introduced the piece) made this calculation only to be deterred by Zuma's political interest: COSATU opposes the piece

  • linds.ronhouse - 2012-09-10 21:13

    A lot of people are not in touch with reality. Majority of young unemployed people are so poor that they cannot even afford a simple newspaper to look for a job. I know a person who has been out of a job for 2 years. He cannot even afford to send his CV by fax or e-mail, because he first needs to take a taxi to town and then pay R5 per page of fax or R20 per 30 minutes of e-mail. He lives in Mpumalanga and most job interviews he secures are in Gauteng. He misses almost all of them because he cannot afford to travel to Gauteng. A job seeking grant is a better option to a wage subsidy. It is a major problem for an unemployed and poor person to even get their CV typed. Things that we take for granted. To benefit from a job subsidy, you need to find a job first. What do you do if you don't have the means to look for a job to begin with?

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