Labour Wellness & Stability: Steps Towards a Healthier Outcome for All Dr Azar Jammine

1. Labour Wellness & Stability: Steps Towards a Healthier Outcome for All Dr Azar Jammine Director & Chief Economist of Econometrix

15. Causes of Unemployment, Poverty & Inequality • Inadequacy of education & skills development • Adversarial labour market environment • Relatively weak entrepreneurship & SMME environment

17. Reasons for Militancy of Strikes • Poor credit position of miners • Union rivalry • Rising inequality • Attempt to overthrow existing capitalistic structure

20. Thank you

21. NDP Proposals to Increase Employment & Growth • Improve skills base • Raise exports • Increase size & effectiveness of innovation system • Improve functioning of labourmarket • Support small businesses • Reduce regulatory burden • Increase investment in social & economic infrastructure • Improve capacity of the state • Greater cooperation between public & private sectors • Corruption

22. Will MTSF be implemented? • A medium term version of the NDP to cover period 2014-19 • In line with ANC electoral mandate prioritising:- • Radical economic transformation, rapid economic growth & job creation • Rural development, land & agrarian reform & food security • Ensuring access to adequate human settlements & quality basic services • Improving quality of & expanding access to education & training • Ensuring quality healthcare & social security for all • Fighting corruption & crime • Social cohesion & nation building • Purportedly two overarching strategic themes: radical economic transformation & improving service delivery • To include focus on New Growth Path, National Infrastructure Plan, Industrial Policy Action Plan, Social Security & Retirement Reform, National Health Insurance • Three priorities: decent work, education & capacity of the state • Target of building up to 5% growth by 2019 & capital formation 25% of GDP by 2019 (from 19% currently) • Retains objective of 5m new jobs from 2010-2020, but promises 6m job opportunities over next 5 years • “Target will require vigorous action to reduce concentration & diversify the economy, whilst ensuring adequate infrastructure, skills & appropriate regulatory framework” • Detailed target improvement in each sphere of government

23. Contradictions in implementation of MTSF • Emphasis on critical role of private sector, but private sector not being embraced properly by govt in practice • Emphasis on elimination of unnecessary regulatory burdens but these are being compounded in practice • Emphasis on small business development but stricter enforcement of BBBEE affects small business more than big business • Calls for reduction in business concentration, but regulations driving greater concentration • Government to intervene in assisting in resolving workplace conflict resolution, but experience with NUMSA strike leaves out small business • Introduction of minimum wage more damaging to small than big business • Enhanced youth employment through employment tax incentive being opposed by alliance partners • Emphasis on reducing corruption which is seen as impeding service delivery, but reluctance of government to act against it • Emphasis on improved accountability & conviction rates & respect for independence of anti-corruption agencies and the constitution, but Public Protector is being vilified from within government • Emphasis on need for stability in leadership, yet Cabinet reshuffle fairly dramatic • Encouragement of in-migration of skills to help education but access to work permits ever more difficult • Encouragement of tourism as jobs driver, but stricter visa regulations jeopardising tourism