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Employment and Labour Minister T.W Nxesi urges all parties to resolve their industrial issues urgently through social dialogue especially in this sensitive period of massive unemployment and retrenchments. 

The Minister was speaking as one of the major employer organisation the Steel and Engineering Industries Federation of South Africa (Seifsa) and the largest worker organisation, the National Metalworkers of South Africa (Numsa) are held in a deadlock over pay following the end of their wage agreement in June. 

Added to that, one of the country’s biggest federations having called for workers to come out in their millions this week for protest action.

Nxesi appealed to all social partners entering the wage negotiations to work through their issues on the table. He said hostility would not solve differences, instead risks escalating the severe economic and social damages that have been brought about by the Covid-19. 

 “Our Constitution guarantees the right of association and the protection of worker rights and industrial action. We respect the fact that many people died for us to be able to enjoy these rights. But with the rights come the responsibilities and we would like to urge unions and other worker representatives to exercise this responsibility.

“It is common cause that the country is now going through one of the most difficult periods occasioned by the pandemic on one hand and the inclement economic conditions that prevailed even before Covid-19 on the other. It is against this background that we appeal to all the players – workers and employers, unions federations and employer bodies to handle the sensitive talks with the necessary caution. 

“Cool heads should prevail and the good of the country and our economy should always at the top of mind. After protracted industrial action, we still have to come and sit around the table to resolve our differences but it is not wise or advisable to play a zero-sum game. We are all invested in this country, said Minister Nxesi.

This comes in the wake of the latest unemployment figures from Statistics South Africa which shows that the country has lost even more jobs in the second quarter with some  54  000 people losing their jobs in the  second quarter  of  2021  to  14,9  million.  The number of unemployed persons increased by 584 000 to 7,8 million compared to the first quarter of 2021. 

The report also showed that discouraged work-seekers increased by 186 000 (5,9%) and these and other changes resulted in the official unemployment rate increasing by 1,8   percentage points from 32,6% in the first quarter of 2021 to 34,4% in the second quarter of 2021 -  the highest since the start of the QLFS in 2008, according to StatsSA.

Minister Nxesi said it would be tragic if more people become unemployed when social dialogue would be more fruitful.

Issued by: Department of Employment and Labour