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DA: Statement by Lindiwe Mazibuko, Democratic Alliance Parliamentary leader, on the youth wage subsidy (03/11/2011)

3rd November 2011

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In a reply to my question in Parliament yesterday, Deputy President Kgalema Motlanthe said he was “quite positive that a positive outcome will emerge” in discussions with the National Economic Development and Labour Council (Nedlac) on the Youth Wage Subsidy. This is not good enough. The Deputy President must intervene to ensure that government's stated policy is implemented in line with the President's and the Finance Minister's commitments.

The policy was formally announced by the President in the 2010 State of the Nation address, but loud opposition from Cosatu on spurious grounds led to it being placed on the back-burner. The Treasury discussion document on the policy – promised by the Finance Minister in his Budget Speech – was also delayed by ten months. Now it seems that Cosatu is set to use its veto power at Nedlac to block the policy, despite broad support from across the ideological spectrum, including South Africa's second biggest trade union federation, Fedusa.

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As the leader of government business, Deputy President Mothlanthe must instruct the officials from the Department of Labour and the National Treasury, who represent the government on the Youth Wage Subsidy task team at Nedlac , to ensure that the implementation of the policy is not further delayed by ideological opposition from Cosatu.

Cosatu has opposed the Youth Wage Subsidy based on their belief that it will “enrich capitalists and further segment the working class”. This is absurd. The figures speak for themselves: had the Youth Wage Subsidy been implemented on 1 April this year, it would already have created 225 000 jobs. The government cannot allow South Africa’s jobless youth to suffer one more day because of Cosatu’s ideological opposition. The needs of Cosatu's members cannot be placed above those of our 3,2 million unemployed young people.

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I will be requesting a meeting with Deputy President Motlanthe to urge him to intervene to ensure the implementation of the Youth Wage Subsidy. The government cannot let its alliance partners halt job creation in South Africa.

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