Wage gap must be narrowed ‘urgently’ – by Linda Ensor THERE was an urgent need to tackle the wage gap between top executives and workers as this posed the biggest risk to the institutional framework of the labour market, Labour Minister Mildred Oliphant said on Tuesday. This glaring inequality, seen together with South Africa’s history of repressive labour laws, contributed to the regular standoffs in industrial relations. While she acknowledged the need to fast-track transformation of the workplace Ms Oliphant did not provide any clues as to what this would entail, other than referring to a statement by President Jacob Zuma in his state of the nation address that social partners should meet to deliberate on the violent nature and duration of strikes. She said one of her key priorities would be to initiate a high-level dialogue on the challenges facing the labour market. She emphasised the need to maintain a delicate balance between protecting vulnerable workers and not stifling economic development. Other priorities for Ms Oliphant’s department were to strengthen the enforcement of labour laws by enhancing the capabilities of its inspectorate. With regard to job creation, a R2.7bn fund for socially responsible investments will be set up by the Unemployment Insurance Fund and the Public Investment Corporation. It would be the second such fund, after a R3bn fund established last year for investment in initiatives with job-creating potential. An investment of R500m from this fund was made in an agriculture fund for investments in farmland and farm infrastructure. The Unemployment Insurance Fund, with an investment portfolio of R9.7bn, will invest R1.9bn over the next three years in training schemes for those laid off, training of unemployed beneficiaries, and the funding of turnaround solutions for struggling businesses. On the legislative front, Ms Oliphant said amendments would be made to the Unemployment Insurance Act to improve benefits, to the Compensation for Occupational Injuries and Diseases Act to provide for a return-to-work policy for injured or diseased workers, and to the Occupational Health and Safety Act to improve the regulation of health and safety in the workplace. Article published with the kind courtesy of bdlive.co.za
Posted on: Wed, 16 Jul 2014 08:04:05 +0000
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