The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

In the wake of significant turbulence and uncertainty in the global economy, the Minister of Finance, Pravin Gordhan, has initiated an uncomfortable but necessary conversation that needs to take place within the tri-partite alliance. That conversation must confront the reality that our labour laws hamper economic growth and job creation.

When Mr Gordhan first tabled proposals for a youth wage subsidy, it was a limited initiative to circumvent the impact of the current labour market regime that keeps aspirant workers unemployed and threatens the jobs of those who are currently employed. Now, in the face of rising unemployment, Minister Gordhan has conceded that the flexibility of our labour laws must receive attention as well.

In my interactions with Minister Gordhan on the implementation of a wage subsidy to date, he has been understandably vague and non-committal. I have requested to meet with him as soon as possible to obtain further clarity on whether he intends to broaden his proposal for a wage subsidy into a wider proposal for reform. I will argue that this is imperative if we are to make a meaningful dent in unemployment.

The National Union of Metalworkers of SA (Numsa) call for the Minister’s dismissal comes as no surprise. We hope that the Minister stands firm in the face of growing pressure from the unions. He must be do so in the interests of his country and the millions of unemployed South Africans that continue to eke out an existence with little hope for the future.