Reply by Deputy President, Kgalema Motlanthe, on questions posed in the National Council of Provinces (NCOP) for oral reply

Question No. 3

Mr R J Tau (African National Congress, Northern Cape) to ask the deputy president:

(a) What measures is the government putting in place to ensure that the proposed subsidy to employers does not expand a renewed focus on casualisation of workers and perpetuate the disparity between temporary workers and those working full time, (b) to what extent will the government ensure that young people employed through this programme are not exploited for tax benefits and discarded without prospects for long-term employment and (c) how will this subsidy be implemented to ensure
that it also benefits young people in the rural areas?

Reply:

Honourable member,

The design of the employment subsidy for unemployed young people has not yet been completed. Before the design is finalised it will be discussed with all relevant stakeholders to ensure that there are no undesirable and unintended consequences of the subsidy.

We will certainly seek to avoid casualisation, a dual labour market, or the cynical exploitation of youth in the implementation of the subsidy. We are all too aware of the concentration of unemployment in some of our very poor rural areas, and we will ensure that the subsidy addresses this issue as far as it is able to do so.

I wish to encourage all stakeholders, social partners, public representatives and young people in particular to constructively engage with this proposal so that we emerge with the most meaningful youth employment programme this country has ever experienced. We owe it to our young people to offer them opportunities to gain occupational competencies through skills development and work experience. This is what this wage subsidy proposal seeks to do.

Issued by: The Presidency
11 March 2010

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