Chairperson, times are tough. Unemployment in South Africa, including those who are no longer looking for a job, sits at 36% and accounts for about 7 million people. Most are young, black and unskilled, and have given up hope.
With the global economic downturn, this situation is worsening daily. In the mining sector alone, more than 20 000 jobs have already been lost. However, trade unions in the mining sector have demonstrated a sense of responsibility. The chairman of the National Union of Mine Workers in the North West said their members were willing to give up holidays in order to keep production going and avert further job losses.
Now, if it's okay for workers to negotiate to preserve jobs, why is it not okay for job seekers to negotiate to get a job and why should companies specialising in placing people in jobs fear being closed down?
Let's look at this situation: Company A offers short-term contract work to unemployed and unskilled people. It pays R46 per day for manual work, which is well below the minimum wage, without medical aid or pension fund benefits.
On the other hand, company B offers short and medium-term contracts to unskilled and semiskilled workers. It complies with all the requirements of the Labour Relations Act, the Basic Conditions of Employment Act and the Bargaining Council Agreements. It also complies with legislation regarding employee deductions for tax, unemployment insurance and occupational injury insurance and contributes to medical aid and pension funds.
It is clear that company A falls far behind company B in providing rewards and benefits to its workers. Well, let me tell you, company A is the government's Expanded Public Works Programme, while company B is a private company called Intuthuko Group Holdings. They are labour brokers. Yet, the private company fears closure for allegedly not providing decent work.
This example illustrates that governments don't provide sustainable jobs; they only provide relief in the form of public works programmes during times of economic hardship. The private sector creates jobs, especially small and medium firms. For a vivid example, look at North and South Korea. North Korea, with its centrally controlled economy, cannot feed its own population; while South Korea, with its free market, prospers.
While smaller firms often need to employ more workers, they don't because of the myriad of rules and regulations, too high minimum wages forced on them by collective bargaining, the cyclical nature of their businesses and because it's too difficult, too costly and too time-consuming to fire people who are not performing.
On the one hand, there is a huge pool of unemployed people who are desperate for a job, and on the other, there are local businesses who need to employ people, but don't. We need a bridge to cross this divide. Legitimate labour brokers can play this role by managing the administrative and legal responsibilities of small companies and directing job seekers to employers. In his state of the nation address President Motlanthe said:
A country that does not ensure the involvement of all its population at all levels of economic activity is certainly going to perform well below its actual potential.
The DA agrees with him. Therefore, a DA government will allow law-abiding labour brokers to help connect the two sides of the labour divide, amend job-crushing labour laws to encourage the private sector to employ more people, give tax breaks and wage subsidies to companies for employing first time job seekers, and let job seekers decide for themselves under which conditions they are prepared to work. This way, we can give back hope and restore the dignity of our people. [Applause.]