The Federation of Unions of South Africa’s (FEDUSA) President, Koos Bezuidenhout, told Finance Minister Pravin Gordhan at UASA – The Union’s 6th National Congress on 19 October 2016, that the federation has trust and confidence in him to deliver the Medium – Term Budget Policy Statement (MTBPS) on 26 October 2016, that will address slow economic growth, report on progress to boost electricity and labour market reforms, as well as maintaining healthy public finances, said Dennis George FEDUSA General Secretary.

Government, business and labour have implemented an economic transformation and reform agenda in NEDLAC to achieve short-term inclusive economic growth and employment, where an internship programme will seek to employ one million unskilled young people in private sector companies. The one million employment scheme could be supported with the Employment Tax Incentive, and the potential contribution from the surplus in the Unemployment Insurance Fund (UIF) for the next three years to boost short-term inclusive economic growth. The one million employment scheme for young people is crucial because the on the job training and the monthly stipend, of for example R4000 could have a great impact on poor households as R48 billion would be pumped into the economy over three years, said George.

The social partners undertook one international roadshow in March 2016 and the South Africa Tomorrow Investor Conference in October 2016, to meet with international investors and rating agencies to brief them on the progress to improve the performance of state owned companies relating to SAA’s new board, the South African Post Office turn around and the appointment of the new CEO and CFO at Eskom. The social partners also briefed the investors and ratings agencies on the progress that was made in NEDLAC under the leadership of Deputy President Cyril Ramaphosa, where the Committee of Principals is currently dealing with the labour market reforms to introduce a Code of Good Practice on Collective Bargaining, Industrial Action and Picketing, as well as to initiate amendments to the Labour Relations Act for secret balloting, Industrial Action Advisory Arbitration and the extension of funding agreements relating to social benefits in bargaining councils.  

The social partners have also originated a R 1.4 billion fund where companies committed to finance and mentor township small businesses, whilst the Department of Small Business Development will prioritise R475 million over the medium term, to support and mentor 40 SMMEs with high growth potential. The red tape reduction guidelines are being implemented, where financial and other support services, will be brought into one location for opening a bank account, register a company and set up a business plan.

FEDUSA believes that the MTBPS will strengthen investor confidence and build policy certainty, despite the distraction of the court case against the Minister of Finance by the National Prosecutions Authority, emphasised George. The tourism, agriculture and oceans economy will also boost short – term growth as 15 licenses for oil and gas exploration were already issued to support inclusive economic growth. Government has approved 32 aquaculture projects and 10 is already in production and one oyster farm was approved and connected to exporters in China and Taiwan, concluded George.

Issued by FEDUSA