The framework agreement that emerged from the recent Jobs Summit convened by the President contained some admirable sentiment and many firm commitments from all stakeholders who were party to it.
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Alas, I despair that many of the lofty goals contained in it will fall by the wayside, if the history of dismal execution and implementation from the government is repeated. Further, the nature of work is changing so rapidly, that many of the solutions put forward will be moot, as the Fourth industrial Revolution takes root.
My view is that many of the fundamental changes to the structure of the labour market that are needed were side-stepped, given that these changes would be an anathema to the ruling party and its alliance partners. One of these fundamental changes involves creating the type of jobs that can serve as a first point of entry for unskilled workers into the job market. As Ann Bernstein writes in her recent Business Times article, the chosen approach of government that workers must receive ‘relatively high minimum wages and considerable legal protection from dismissal’ equates to a policy that argues that ‘no wage is better than a low wage’.
She further points out that history in other countries that adopt this approach leads to better jobs and greater opportunities for workers over time.
The other issue that needed to be confronted is our dismal productivity rates. The CEO of Productivity SA is quoted in the Business Times that ‘ lack of productivity is one of the greatest challenges and a major cause of joblessness’. Contrast this with the view of the newly elected SG of Cosatu in a recent interview who said their members are ‘tired’ because they are doing the work of two or more people, and clearly there is a gulf of understanding between the parties.
The third is greater flexibility in the labour market. The ability to replace poorly performing workers or surplus staff if operating conditions require actually enhance the sustainability of companies, particularly newer ones. The USA has one of the most flexible labour markets in the world, with minimum regulations. History has shown there, that while unemployment has the tendency to increase in lower growth periods, the labour absorption of the economy is phenomenal when growth accelerates-unemployment is at its lowest currently.
Contrast this with our economy, which even during times of relatively high growth failed to create the jobs to match, implying that companies had a high resistance to employing new staff and chose to mechanise for example.
The reality is, that the nature of a ‘job’ has been drastically changed in the past few years. The notion of a 9-5 job for life are long gone. New jobs are characterised by multi-skilling, flexible hours and portability.
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The traditional benefits and protections are increasingly falling away as companies are presented with new options to warm bodies, such Artificial Intelligence (AI) and the internet of things. Unions have to confront this new paradigm. However, the recent action by SASSA staff who protested that Biometric verification was ‘not part of their job description’ and Home Affairs staff refusal to work on Saturdays leads me to believe that they are a long way away from confronting this reality.
After matriculating, Vijay Naidoo studied Economics in the UK. Upon his return, hejoined the family construction business as MD for 10 years.
He subsequently joined his sister in their furniture manufacturing business as director for quality assurance and operations. He was responsible for all quality aspects of their products, and led the project to the business achieving an ISO 9000 quality accreditation. As an export focused business, this was important for our international competitiveness.
Mr Naidoo has an abiding interest in quality management and productivity improvement, particularly in manufacturing.
More recently, he has focused a lot of his time on giving back to the community by way of mentorship of small businesses and sitting on the executive of the South Coast Chamber of Commerce. He also sits on the Board of the Ugu South Coast Development Agency.
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