Hon Chairperson and members, Cope is extremely concerned about the economy's massive unemployment rate. Even though our economy is formally categorised as an upper middle-class economy, it has one of the highest unemployment rates in the world. Unemployment figures from government say that 24,3% were unemployed by the end of last year. However, if we include discouraged potential workers, then the figure is closer to 40%.
Last year, there was a net loss of 423 000 jobs in the formal sector alone, comprising trade and manufacturing. However, considering the overall economic situation, more than 870 000 jobs were lost, bringing the total number of the unemployed in the country to more than 4,165 million. That shows that the government made false promises to the electorate in their election manifesto and state of the nation address.
The country has a problem related to the inefficiency of the Commission for Conciliation, Mediation and Arbitration and of the labour courts. Annually, between 80 000 and 90 000 dismissal cases are referred to the CCMA. Approximately 18 000 of those who bring their applications to the CCMA receive arbitration awards. Matters that are taken to the labour courts are generally only settled a year after the hearings. Sometimes it takes even longer. This is a problem that has to be tackled urgently, as it is imperative that labour disputes are settled quickly and expeditiously.
Our labour laws should be continually updated on the basis of the jurisprudence arising from the CCMA and the labour courts, both to reduce their burdens and to refine the laws. If pre-dismissal procedures are properly clarified, it will help both the employer and the employee to achieve better results.
Government must hasten to reduce unnecessary costs for all parties involved in unfair dismissal disputes by introducing legislative reforms covering pre-dismissal, conciliation, arbitration and probation. Such reforms will lead to greater efficiency and effectiveness in labour-market institutions, such as the CCMA, the labour courts and the bargaining councils.
On labour-market programmes, Cope as a proponent, of course, of the activist state ... [Interjections.] ... obviously supports an active labour- market programme, as this can support opportunities for unemployed workers. The programme includes a wide range of activities that can stimulate employment through, inter alia, retraining and reskilling; creating a physical labour market in each municipality; facilitating their job search by improving the matching of workers to jobs and vacancies to individuals; and helping workers improve their work habits or increasing motivation and confidence.
On the issue of the public employment services, Cope would like the Minister to outline when a public employment service policy and the establishment of the employment services board are likely to emerge. The department should be proactive by immediately setting up the envisioned database to provide integrated employment information.
Cope is anxiously awaiting the amendments to the Skills Development Act of 1998 so that the country can have proper progress in labour.
On the inspection and enforcement services, Cope is concerned about the lack of progress in the proposed introduction of the inspection and enforcement services. Cope would like to know how far the department is in this regard. We are encouraged by some of the developments, but we are very concerned that the government has just not been able to stimulate the economy sufficiently to create better labour-market conditions. Government knows the significance of job creation, but seems not to have the answers. Meanwhile, the unemployed are languishing in casual jobs or in despair. This government has made extraordinarily huge promises, but its delivery on those promises has been miniscule. This suffering of the people must be brought to an end through effective stimulation of the labour market.
Finally, we welcome the ANC government's U-turn in their stance regarding the total removal of labour broking without any proper national debate, because there hasn't been any. We are delighted by this move. We are prepared to work together with you, as we want to see the industry regulated, jobs protected and the creation of new jobs. To simply rise and say that you are removed without any scientific way forward will altogether not help the country. We therefore say that we should sit down and talk about these things, so that you don't simply go out and open your mouths when you know that the antithesis is the case. Thank you very much. [Applause.]