Numsa likely to challenge the Employment Tax Incentive Bill

The Numsa is looking for a legal opinion on challenging the Employment Tax Incentive Bill, according to which tax incentives will be provided to the companies which provides employment to the youths looking for work experience.

Numsa and the Congress of South African Trade Unions (Cosatu) are in strong opposition to the legislation, but its hand to hand partner, the African National Congress (ANC), has moved forward supporting the bill.  

Cosatu was unable to held a successful campaign against the bill as earlier during the inclusion of the youth wage subsidy, as it was affected by the divisions and was involved in a complicated court disputes

regarding the suspension of general secretary Zwelinzima Vavi.

After being budgeted by the Finance Minister Pravin Gordhan in 2011, the youth wage subsidy had interrupted in National Economic Development and Labour Council (Nedlac) for three years.

ANC took a firm and a strong stand on the Employment Tax Incentive Bill in the Parliament, ensuring that it was pushed through after Cosatu, Numsa and other affiliates had submitted their strong rejection of the bill during the parliamentary declarations.

Irving Jim, the Numsa general secretary said on Monday that “the union was taking a legal opinion upon the failure of the state to take the bill to Nedlac.”

The treasury has also taken a legal advice and believes that like a “money bill” the measure did not have to pass through Nedlac.

On Monday Mr. Jim said on the sidelines of a Numsa research and policy institute colloquium held in Benoni that “Numsa has taken a firm decision regarding educating youths across the country because they deserve better than the cheap administration by the national Treasury that wants to deliver them to  

the capitalist class which can exploit them.”

The Employment Tax Incentive Bill will support job creation for the youths with the help of government, settling half the salary bill for the freshers between the ages 19 and 29.

Inspite of strong opposition, the bill passed in the Parliament last week with the support of the state would be implemented as early as possible may be in January - said by the Minister in the Presidency and chairman of the National Planning Commission Trevor Manuel.

On Monday, saying a few words at the release of a goldman Sachs report on two decades of democracy, Mr.Gordhan said that the bill would provide surety that we would take off as many youths as we can. If youngsters are not having any kind of job experience, they will really have a poor future.”

In a presentation at the Colloquium, Mr. Jim said that the youth wage subsidy needs to be discarded and instead further expand education and training colleges capable of accepting 1-million learners/year beginning from the next year, compared to the present 400,000.

He further said that in 1994, the political power was not supported by the economic power. ANC looked like it was happy with the administrative power it was having.

He also said that “there are no questions to be asked like the power for whom and for what, if it has not fundamentally addressing the ownership and control.”

“Our constitution confirms one thing that those who owns economy will continue further with the same.”