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Contextual factors on unemployment (B) Understanding the make-up of…
Contextual factors
on unemployment
A) The
BIG
and
SMALL
debates
:smiley:
A1 Labour-laws
Places to learn from!
Germany's job miracle due to overhaul of labour regulations in 2005 :warning: with some caveats
Could this be major factor/area for striking a deal in SA?
ACTION
- DGMT could benefit from bringing on board a labour law specialist to scope opportunities for concessions, also the risks/tensions etc
Need to be a neutral person :warning:
Highly political and ideological issue! and contested!
How to make trade unions care about the unemployed
as much as they do about their working members?
Important player=Trade Unions!
Will require careful analysis and understanding
where the tensions are, e.g. benefits for youth may
raise costs/risks for adult workers
(youth wage subsidy a case in point).
Under what conditions would changes to labour regulations
be possible/get sufficient consensus as in the case of Germany?[conditions for social pacts -a very topical issue in SA]
Think also about Brazil, India cases, etc
A2
Govt monetary policies
low vs. high inflation
for growth and job creation
Quite a technical issue and somewhat peripheral to
the unemployment debate but good to know.
A3
Trade relations and their impact on jobs in key sectors
i.e. manufacturing
A concern mainly for trade unions (Cosatu). The loss of jobs in manufacturing because of SA-China trade relations, + historical issues i.e. walmart, EU- farmers.
Another peripheral issue!
B) Understanding the make-up of business
Market fundamentalism
Govt and labour are the problem
scapegoating
Corporate citizen agenda is gaining some momentum :<3:
**exploitative tendancies prevail :no_entry:
We need to be careful not to fall into this trap!
"I am convinced that those in the second tier would be happy to accept less job security, lower wages and safe but not wonderful working conditions rather than being permanently unemployed " - Herman Mashaba, 2012
A fragmented business sector
old guard vs. new guard
A4 Governance
Mix bag of issues relating to corruption, weak political leadership, poorly functioning public institutions -
General concern is about impact of poor governance on investment to promote job creation/growth - :!!:
A5
Poor stakeholder relations :!!:
Issue at play - SA operates in a low-trust environment which is a huge obstacle for economic transformation/consensus building.
This relates to issues of governance at least from the side of business.
Political dynamics in the country create high uncertainly which is negative for fostering cooperative relationships and for investment
#Random issues specific to youth unemployment
Most lack work experience, do not have the skills, poorly educated, have unrealistic expectations, are unreliable
A6
HUMAN CAPITAL DEFICITS
In relation to growth/productivity and employment