COSATU all set to oppose the youth wage subsidy

COSATU said that it is all set to protest against the Employment Tax Incentive Bill though being signed by President Jacob Zuma - said on Thursday.

After being signed by the president, thewill come in effect from January 1. This clearly states that the employers who have hired the youths on or after October 1 are eligible for the incentive bill.

Patrick Craven, a COSATU spokesman said on this that the labour federation is rather not happy with this signing and further they will continue to claim that the act should be referred to the National Economy Development and Labour Council as an unusual step. They are also planning for a general strike early this new years.

Since last two years COSATU was persisting to oppose the youth wage subsidy and its replacement right from the initial stages, as they believe that this subsidy would create an employment difference in the market, means that it will replace the older workers. Also they in strong opposition of the use of the states money for the subsidy employers who have created the jobs in one or the other way.

On the other side the Treasury believes that the employment tax bill would promote the employment opportunities, especially for youths aged between 18-29. The jobs would be created in special economic zones. As per the act the employers will receive tax incentives for providing  employment to the youths for maximum  two years with some rules and regulations.  

As per the words said by Treasury on Thursday, they believe that till now none of the programs or policies could improve SA’s unemployment condition. But this tax incentive bill is believed to have that potential to bring that change in the market and will surely create new and additional jobs.

As per an international survey on the employment trends, most of the employers in South Africa will not be hiring more youths in the first quarter in 2014. The survey released by the ManpowerGroup this month states that 15% of the company heads expects to increase members in their staff while 9% of them wants to decrease. 75% of them were completely idle. Thus the overall net employment outlook was 4% or 6%.