Cosatu blocking youth subsidy, says Zuma

2012-05-16 16:10

Cape Town - President Jacob Zuma confirmed that the Congress of SA Trade Unions (Cosatu) remained the stumbling block to the implementation of the youth wage subsidy, DA parliamentary leader Lindiwe Mazibuko said on Wednesday.

"The president also said government is still seeking trade union buy-in for the youth wage subsidy that would create more than 420 000 new jobs," according to Mazibuko.

Zuma, in a reply to a DA parliamentary question, said discussions on the youth wage subsidy had taken place within the economic sectors and employment cluster, and consultation with social partners began at the National Economic Development and Labour Council (Nedlac) on May 10 last year.

"Social partners continue to discuss the youth employment incentive at Nedlac. As such, final proposals have yet to be made to Cabinet," he said.

Cabinet did not intend to abandon the policy. However, discussions with social partners, alongside the public comments received on the discussion paper, would inform a revised document and the design of the proposed youth employment incentive.

Zuma said Cabinet would respond to the final proposals made.

The government had undertaken to resolve the concerns raised by social partners, in particular organised labour, in Nedlac.

This included outlining the role of the youth employment incentive as an important pillar of the economic development department's multi-pronged strategy to confront youth unemployment, and adjusting features of the proposed incentive to address the specific concerns of social partners.

Zuma said there had been a number of valid concerns raised with the youth employment incentive, including the potential displacement of older workers by younger workers, the age of those potentially qualifying for the incentive, and the duration of probation. The government's discussions with social partners were aimed at mitigating these concerns.

The rules, design, and monitoring of a youth employment incentive would be critical to actively reduce the risk of negative unintended consequences, including potential displacement, and help maximise net job creation.

The government would focus on accelerating social dialogue and finding satisfactory solutions to the valid concerns that social partners had raised, Zuma said.

  • Sharon - 2012-05-16 16:14

    Oh, sorry, JZ, did we WAKE YOU UP?

      Christopher - 2012-05-16 16:17

      HAhaha...Gone back to sleep already...

      NrGx - 2012-05-16 16:18

      But he hasnt even said anything new! - he read off the same piece of paper that was handed to him months ago!

      Henri - 2012-05-16 16:32

      wouldve have thought he could grow a backbone and stand up against these trolls. unfortunatly the only thing still growing isnt his balls

      Phiwe - 2012-05-16 16:40

      @Sharon - did you even know that this policy was introduced about a year or two before JZ became president! Like then the policy was rejected and since they've been working to try and resolve the issue...i guess this is the ugly side of democracy is that, for it's sake we have to make sure that every policy is agreed upon by everyone and that drags on and stunts progress. So if anything the DA, despite your misinformation, did not wake anyone up they are just jumping on yet another ANC economic policy which I'm sure they will re-style at their own

      Alan - 2012-05-16 16:40

      (Alan2) Oh, is this the Tripartite ALLIANCE? Interesting way for allies to behave.

      Phiwe - 2012-05-16 16:45

      Pardon me, a year or two after he became president! This is not a DA policy, sorry! They are clueless

      Martin - 2012-05-16 16:51

      zuma does not run this country, he is the not so pretty face of the anc

      graham.plessis - 2012-05-16 17:05

      @VOR - we all know that this is an ANC treasury policy! That does not mean that an opposition party can't share the same policy! I am not DA but you are suggesting it is wrong for a party to agree with another party's policy?!! The ANC and DA are in agreement here, with COSATU the stumbling block

      Sharon - 2012-05-16 18:04

      @VOR - The ANC is great at coming up with master schemes - tell me then - why is it not implemented yet? Why is it up to the DA to take up the reins and run with it? I'll tell you why - JZ is really good once a year when he delivers his state of the nation promises, and then you don't hear anything about these wonderful plans until the next year. Then they just change the date of last year's speech and he delivers it again! If it is up to the opposition to wake up government then they are doing a fine job indeed!

      colin.dovey - 2012-05-16 18:17

      Nobody disputes that South Africa has a crisis of youth unemployment. The rate of joblessness in our country is amongst the highest in the world, and 71% of the unemployed are under the age of 34. We should all know that the Youth Wage Subsidy policy is not a silver bullet for youth unemployment. But it does represent the best way to start lowering the cost of employing young people without affecting conditions of employment or wage levels. And no issue better illustrates the ideological deadlock in the ANC government than the delays around the implementation of this policy. It is clear now that, without Cosatu’s buy-in, anyone in this government who comes up with a progressive and relatively uncontroversial policy to tackle unemployment will struggle to find the political backing to implement it. Instead, they have to navigate a storm of shifting factions, interest groups and ideologies in the Tripartiate Alliance that can obstruct policy implementation – perhaps permanently. It is up to President Jacob Zuma to take the tough decisions in the interests of the unemployed and marginalised, but so far he has failed to cut through the widening ideological divide between those ministers aligned to Cosatu and the left, and those open to more pragmatic solutions to our severe and worsening economic problems.

      Tyson - 2012-05-16 21:30

      Here why Youth subsidy will not work: in simple terms Say Company X can only afford to hire 10 new employee without any salary subsity. now with this new policy can hire 20 new employees all on 2 yrs contracts and all youth. these new employees will be made up of 3 whites, 2 indians, 5 coloureds, 1 chinese and 9 blacks. at the end of the contract period, Company X decides to renew only 7 contracts ( 3 whites, 1 indian, 1 chinese, 1 colourered and 1 black) and declare the rest as not completent. The Government Monitors of the program need not worry because the contracts that were not renewed now have got 2yrs experience and can seek jobs somewhere else. come again, Company X hires 20 new youth employees. This time Company X hires 15 blacks, 1 white, 3 colourered, 1 indian and 1 chinese. This times around it renews only 5 contracts (1 black, 1 white, 1 coulered, 1 indian and 1 chinese). then the following year Company X does the same thing except that this time it dsoes not renew any contract and continues to do that until jesus comes back, because Company X's need to make more profit. Just like Shoprite and it's CEO is well rewarded for this!

      graham.plessis - 2012-05-17 02:59

      @Tyson - the subsidy will be more nuanced! It will probably be temporary and not include potentially high turnover non skilled industry

  • Smili - 2012-05-16 16:17

    Zuma is just another coward who doesn't want to lose Cosatu support! They never condemned the violence! They don't want the youth to succeed! ANC AND COSATU ARE BOTH ISSUEs ALL SOUTH AFRICANS NEED TO STAND TOGETHER AGAINST!

      Kolobe - 2012-05-16 16:57

      whats the point of subsidizing R1500 a month because thats what our people earn...might just as well subsidize maids. cannot be collecting tax and giving it back in hard cash

      Smili - 2012-05-16 17:00

      Kolobe... Ill never agree to subsidizing you... just saying ;)

      elize.vankerckhoven - 2012-05-16 17:14

      @Kolobe if you only earn a R1500.00 a month my friend I suggest you seriously start looking for another job!! And please intruduce me to a fulltime maid that still earns a R1500.00 a month, mine earns R750.00 a week!! Our top factory worker earns R3500.00 a week and one of the bottom ones with no knowledge at all a R1500.00 a week and those are rates payable according to NUMSA.

      richard.hipkin - 2012-05-17 14:32

      kolobe, please go research Youth Wage Subsidy, you clueless..

  • Stille - 2012-05-16 16:19

    Well Zuma, its about time you got off your wife (s) and start making decisions and give clear indications on where you stand with regards to issues of importance.

      Phiwe - 2012-05-16 16:44

      Little did you know!

  • yvette.meyer2 - 2012-05-16 16:20

    Yip let's rather have a high unemployment rate - youths sitting around all day with nothing do...... perhaps if they were employed our crime rate would drop. Damn too hard for Cosatu and our decision making president to understand!!!!

  • Chris - 2012-05-16 16:20

    I still haven't heard any official word from the ANC about the DA's march on Cosatu.

      John - 2012-05-17 03:50

      Are you not satisfied when COSATU marches under "VIVA ANC, VIVA"?

  • Andres - 2012-05-16 16:21

    HAHA! And Irvin Jim (NUMSA) and Zwelinzima Vavi (COSATU) said the DA must not march on the revolutionary house, they were asking for violence. They should march to Pretoria. So, why would you march to a place that agrees with you? COSATU is clearly the culprit in keeping 400,000 youth from employment. So Vavi, are people are only allowed to march if they agree with you? How about this, next time you march, you're only allowed to march in places where the people agree with your demands? What works for the goose works for the gander in a democracy... or does it... Not in the unions' book. Counter-arguments to theirs do not deserve constitutional protection of Freedom of Association and Freedom of Speech. Hypocrites: Champagne Socialists and Caviar Communists screaming "Capitalist pig" at the premier that drives a freekin' Prius marching with the unemployed youth and varsity students worried about their future.

      Raymond - 2012-05-16 16:27

      Well said.

      Alan - 2012-05-16 16:47

      Yep, Champagne Socialists is what all these leaders are. Has always happened with Communist/Socialist types. With about 2 million workers paying around R60 on average in monthly workers' dues, Cosatu rakes in about R120 000 000 a month (that's R120 MILLION, folks). Nice capitalist stuff hey? But with declining union membership, this pot of gold is being threatened. So of course, Cosatu resorts to violence. I love someone's suggestion that workers should pay union officials the dues in cash at the factory gate every month. Maybe the workers would then realise just how they are getting ripped off.

      elize.vankerckhoven - 2012-05-16 17:23

      @Alan we considered doing that withour workers, cancelling taking it off their monthly salary and forcing them to go to the bank and sign a debit order every month to COSATU, I bet you they would be loosing union members like flies!!

  • Singatha - 2012-05-16 16:25

    The silence was deafening and still is from the ANC on this issue.

      Lacrimose - 2012-05-16 19:49

      If they do it will be the standard "we distance ourselves from this behaviour and trust in our judiciary to sort it out"

  • Andrew - 2012-05-16 16:27

    It just shows what a gutless and useless leader Zuma is when Cosatu dictates to him what he can and cannot do. We are doomed with this imbecile of a president. ABZ is the only solution for Magaung.

      Smili - 2012-05-16 16:52

      Euthanasia is the only solution...

  • Gerrit - 2012-05-16 16:28

    Cowards can not rule.If this self imposed President can not stand up against Cosatu then get rid of him.

  • Bevan - 2012-05-16 16:33

    its sad that this country is governed by a union, evidence in the toll gate debacle, it is such that whoever Cosatu decides to back with all their voters will become the governing party in SA, so much for democracy...

  • mandla.shikwambana - 2012-05-16 16:36

    Im disappointed jst ah d administration j.z is nthng bt disgrace nthng much 2 say i dnt supot da bt nw i cn see dat they hve a point 2 make.

  • ChrisKhanye - 2012-05-16 16:37

    Zuma is very assertive e.g. E-tolling, Menzi Simelane, Shabi Shaik, Richard Mdluli, Khulubuse Zuma, Scorpions, Julius Malema, etc. It's comical - DA marching to the wrong House to help Zuma assert himself. Not President Vavi guys! But President Zuma must simply assert himself on the Youth Subsidy debacle, Period!

  • ntuthuko.mthembu1 - 2012-05-16 16:38

    Kanti sidakelwa icosatu lana

  • Herman - 2012-05-16 16:39


      Lacrimose - 2012-05-16 19:50

      EAch one thinks the other one is in charge - hence the madness :)

  • Musa Mahlangu - 2012-05-16 16:44

    Shouldnt the headline be "COSATU ( it is an acronym) blocking youth subsidy, says Mazibuko"? The article creates a false perception that Zuma needs COSATU's agreement to implement policy. It's shoddy reporting or gutter reporting at best. I don't blame @Herman, when you read the article it's clear it is quoting Mazibuko.

      Manu - 2012-05-16 17:07

      I agree. That was a total misrepresentation of the facts.

  • sydney.matubandlela - 2012-05-16 16:50

    The title of the article is misleading, there was no where in the article where Zuma was quoted as saying \COSATU is blocking youth subsidy\ except what Lindiwe said!

      WhiteTsotsi - 2012-05-16 17:06

      It was Lindiwe's own iterpretation. Zuma never said that! I agree with you fully. Zuma indicated that a lot of negotiations need to take place before I final proposal can be put forward to government.

      Peter - 2012-05-16 17:31

      So you side step the issue completely, well done. He may not have said it but thats what happened whether you want to accept it or not Cosatu is blocking it. You would rather attack the DA then accept that the ANC is powerless

  • Smithfield - 2012-05-16 17:03

    I hope one day "IF" the DA wins elections they would chew Lindiwe Mazibuko & spit her out before she could even say "Madam"

      Hudayfah - 2012-05-16 17:15

      Like anc did to 'i will kill for zuma' malema? Not a chance buddy, even if you glued your fingers crossed

      Smili - 2012-05-16 17:42

      Lindiwe Mazibuko has more balls and brains than the entire ANC leadership put together? Why? Because she is willing to fight ignorance like yours. :)

  • paul.mostert.5 - 2012-05-16 17:03

    Keep the masses unemployed - that is the ANC/COSATU strategy - this way there are lots of people who can protest daily without losing their jobs. This way, they will keep on voting for a political party that base their support on race and the poor.

      Lacrimose - 2012-05-16 19:53

      Ignorance is Strength

  • ludlowdj - 2012-05-16 17:06

    I wonder where you think this subsidy money is coming from? you can't even pay your bills now fool, 1.1 billion owed for water, how much still owed to suppliers for services rendered, Hell Jacob you must think the white man is made of money!

  • kmphasha - 2012-05-16 17:07

    Youth wage subsidy will not create jobs but potential risk of income reduction in the impoverished household, labour exploitation , and more enrichment of the rich. Wake Up Africa!!!, DA wants it badly because it knows that its members whose majority are business owner will benefit more as the is potential increase in income and potential decrease in overheads.

      elize.vankerckhoven - 2012-05-16 17:31

      @KMPhasha I fully agree with you, better for those 420 000 to sit at home with NO income than to enrich the rich, makes perfect sense!!

      mapepaki - 2012-07-04 06:33

      how can you be so blind, I give you 2 years to come up with a better solution. Ready Steady GO............

  • Faizie - 2012-05-16 17:08

    JZ we can put bodies on the street if that will help you be a leader

  • michael.falatsi - 2012-05-16 17:10

    ek is gat fol ke anc ...............................i think da might be the way

  • Motho - 2012-05-16 17:27

    Cde ZV, vote JZ out of office in the next election...

  • Cornelius - 2012-05-16 17:34

    The only way to increase employment is through implementing policies that have a bearing on the supply side of employment like improving capacity of current companies or opening new companies. Subsidies do not create employment but they can make companies to replace older workers with younger workers. Its like implementing BEE policy where some people are replaced by others!

      Smili - 2012-05-16 17:54

      Yeah... but Cosatu and the ANC implemented BEE without second thought... the only reason they wont implement the youth subsidy is because the youth doesn't support them.

      Lacrimose - 2012-05-16 19:55

      We are drowning in policies, procedures, guidelines and Acts. People can't eat any of these things and after 18 years we have to concede that over-regulated society is the part of the problem

  • Nukki - 2012-06-23 10:19

    who is the government here, COSATU or ANC?? or is the zoomer again playing the 'blame game'

  • mapepaki - 2012-07-04 06:29

    ha ha ha Mr Vavi has got mr Zuma by the short and curlies. Catch a wake up while you are trying to appease Vavi, your youth (your future) are desperate. You owe it to the youth of this country to get a foot in the door. The longer you um and aah the sooner the money put aside is going to fly o u t t h e w i n d o w into someones bank ac

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