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The Federation of Unions of South Africa (FEDUSA) welcomes the State of the Nation Address’ (SONA) commitment to decent work and high level social dialogue in the National Economic Development and Labour Council (NEDLAC) - between labour, business and government to achieve 5% inclusive economic growth, jump-start faster employment creation through energy infrastructure investment and local government service delivery. The dedication to decent work creation confirms the laying of the foundation for inclusive economic growth and new opportunities for the social partners to explore in NEDLAC to eradicate unemployment, poverty and inequality said Dennis George FEDUSA General Secretary.    
 
The investigation into the possibility of introducing a national minimum wage as one of the key mechanisms to reduce the income inequality is an important step.  FEDUSA also welcomes the opportunity to address the prolonged, and at times, violent strikes that have weakened sound labour relations and the economic environment through social dialogue, said George. FEDUSA has argued for a long time that wage inequality between top executives and workers are also a contributing factor in heightening labour tension and that the social partners will also need to deliberate on these wide wage inequalities.
 
The fact that President Zuma and a senior task team of Ministers will lead the implementation of the landmark Framework Agreement for a Sustainable Mining Industry - entered into by labour, business and government demonstrates that the socio-economic conditions of workers are imperative and that the mining sector has a critical contribution to make towards increasing inclusive economic growth. The socio-economic issues include the building of decent housing and other services to revitalize mining towns to improving the living conditions of workers - which could create a new platform for collaboration and co-operation in the mining sector.

President Zuma was not specific as to the key constraints and obstacles   to investments to stimulate rapid economic growth, but has committed to work with the private sector to increase investment, which could jump-start private sector employment creation, said George. The prioritisation of youth employment through the Youth Employment Accord is critical and the expansion of the number of internship positions in every government department and public entity -  for experiential training - could support many unemployed graduates. FEDUSA note that the private sector in wholesale and retail trade, manufacturing and finance sectors have used the employment tax incentive in the past five months to benefit 133 000 new employees. This explains that incentive schemes could support employment creation but it is important for NEDLAC to verify these interventions, said George.

FEDUSA notes the combating work against corruption of the Special Investigating Unit, the Anti-Corruption Task Team, the Asset Forfeiture Unit and the Hawks, and calls for the strengthening in procurement, management and operations systems that undermine the efficiency and effectiveness of government. It is imperative to centralise procurement under the Office of the Chief Procurement Officer in the National Treasury, said George. It is also imperative to introduce legislation that will prevent public servants and public representatives from doing business with the state, while strengthening whistle-blowers protection, and the provision of technical assistance to departments for the effective management of discipline.
 
An aspect of SONA which did not clearly address current challenges is the need to focus on the quality of basic education. Performance in schooling is at the heart of developing the skills base for economic growth. South Africa’s The current interest in South Africa's performance stems in part from a recent World Economic Forum's report that saw South Africa rank 146th out of 148 countries that included Lesotho, Zimbabwe and others.

The South African education authorities do not agree with this but the reality is on ground floor level which has an impact on the unemployed youth whom fail to succeed in basic levels of education and remain unemployable despite passing a basic matriculation. Clear changes in Government direction and commitment in terms of the Basic Education and partnerships with school Accord is required by Government.
 
It is not what President Zuma says in the State of the Nation Address that will make a difference - it is what Government departments and state entities implement on the ground that will contribute towards inclusive economic growth and employment creation, said George.