Walmart deal will cause job loss

Government opposed the merger between Walmart and Massmart because it would lead to job losses and a flood of cheap imports which would destroy small businesses and undermine industrial development, director general of the economic development department Richard Levin told MPs this afternoon.

Three government departments lodged an appeal against the merger with the Competition Appeal Court on Wednesday and Mr Levin outlined the reasons for the surprise move during a briefing to Parliaments economic development portfolio committee. The committee is holding public hearings into the merger.

Mr Levin told the committee that the departments of economic development, trade and industry and agriculture believed the merger would undermine governments objectives to increase employment, considering that SA – with an official unemployment rate of 25% – was ranked among the ten countries in the world with the lowest level of employment. Job creation was a key government priority and a key objective of its industrial policy action plan.

via BusinessDay – Walmart deal will cause job loss – government

BEE and job creation cannot coexist

I’ve just read a piece about the new EDF (Enterprise Development Fund) that will be rolled out under the NEF’s control.

The thing is, yet again, the BEE drum is the one that’s beating the loudest. Essentially, black-owned and managed businesses will be the only ones eligible for this funding.

The way I see it, you can have one or the other. Either you’re committed to job creation, OR you are committed to BEE.

In case you’re wondering why, let me explain.

If job creation is a priority, then any business with a viable plan, that has the potential to create jobs, for anyone in the country, should be a priority. It doesn’t matter, as far as I know, what race the person who is doing the hiring is – it’s the job, and the salary, that matters.

On the other hand, if it’s BEE that is a priority, then government is essentially saying that they don’t care if anyone else can create jobs, because it’s not the jobs themselves that are important, but getting the right colour bums in the managing seats.

Given our huge unemployment problem, it seems like folly to be restricting any enterprise, with the potential of creating jobs, from accessing the assistance they need to do so. I might be wrong, but if a white person can create 10 or 20 jobs, for example, with their business idea, are the jobs not more important than the colour of the entrepreneur?

Our government needs to give us all a straight answer on the BEE / job creation dilemma. Are they more interesting in maintaining the tenderpreneur mentality, or are they interested in real economic reform.

If it’s the former, then it’s business as usual I suppose. However, if it’s the latter, then the policies surrounding small business development definitely need an urgent rethink.

We are an emerging economy. We are a nation crippled by unemployment.

Maybe it’s time that those became the driving factors in policy with regards to business development, rather than the current one, which seems to be: if you’re not black, we don’t want your jobs.

via BEE & job creation cannot coexist: News24: MyNews24: Your Story

Employment in South Africa

According to the report only 41% of South Africans aged 16 to 64 have any kind of a job, while in China the figure is 70% and in high-growth developing nations like Indonesia and Brazil is around 65%.

The research behind the report found that South Africa’s stringent labour market regulations made it expensive to employ people and that mostly skilled and experienced people were employed. Thus the country is sinking deeper into unemployment. The report calls for allowing young, unskilled and inexperienced people to be employed at lower wages, something current labour legislation prohibits, while labour costs were driving up unemployment.

And, Richard Pike, CEO of one of South Africa’s biggest employment services groups, Adcorp, says militant trade union activism is one of the major contributing factors to South Africa’s high unemployment rates. He also defended the contract employment of 3.9 million workers, saying rising contract employment was not unique to South Africa.

via Labour watch

SA heading for more job losses

Unemployment could grow to 12m in the next five years.

JOHANNESBURG – Recruitment giant Adcorp says restrictive labour laws are the major obstacle in the creation of jobs in South Africa with unions making unrealistic demands and pushing up entry-level wages for first time job seekers. While this might not be new, Adcorp CEO Richard Pike says should the current trend continue, the number of unemployed could grow to a staggering 12m in the next five years.

Pike says the overwhelming majority of unemployed are black and under the age of 24. He says research has shown that while wages have increased, productivity has decreased significantly, prompting many companies to opt for automation instead of employing a workforce which is largely unreliable, often due to industrial action.

Pike says while the official unemployment rate has been set at 25%, the unofficial level is more realistically fixed at 37% amounting to between 6 and 8m South Africans being without work. He says some companies have ceded to exorbitant wage demands, only to ultimately be forced to retrench workers to make up for the financial shortfall. He says labour intensity fell by 8.1% in 2009, meaning it took 36% fewer workers to produce a given level of production.

via SA heading for more job losses – Moneyweb

People losing their jobs must consider self-employment – make something, do something, sell something. We can help you to get registered and going.

Anglo to create 25000 jobs

Anglo American (AGL), one of the world’s five largest resources groups, on Thursday said it was committed to creating and sustaining 25,000 jobs by 2015. This it would do through up to 1,500 new businesses.

Speaking at Anglo American’s local procurement and enterprise development trade fair, Chief Executive Cynthia Carroll said Anglo’s enterprise development arm, Zimele, has already invested some 467 million rand in 845 local businesses, which together employ about 16,000 people, and generate a turnover of more than 1.8 billion rand.

She also said Anglo’s commitment to developing new businesses supported the country’s vision of creating economic opportunities for black South Africans.

Anglo’s procurement spend with black empowered business in the past 10 years has increased from 911 million rand to 21 billion rand.

This makes up more than 40% of the group’s total available procurement spend to historically disadvantaged South Africans.

Department of Mineral Resources deputy minister Godfrey Oliphant said a recent study showed that South Africa’s youth would rather be entrepreneurs than be employed.

“It could be argued that lack of employment has encouraged the youth to look for alternative means to support themselves,” Oliphant said.

He said over 70% of the youth, particularly the black youth, consider running their own businesses, but they recognised that they needed experience.

He encouraged big business to get youth more involved in entrepreneurship. – I-Net Bridge

via Anglo to create 25,000 jobs – IOL.co.za