Youth Wage Subsidy: Cosatu must not be allowed to continue its opposition

The DA is dismayed at Cosatu's submission today to Parliament's Standing Committee on Finance during public hearings on the draft Employment Tax Incentive Bill to introduce a Youth Wage Subsidy. 

That submission concludes with: "Cosatu is committed to resisting the passing and implementation of the bill and will make an urgent political intervention through the alliance to stop it going ahead"

This will not stand. 

Cosatu is the ultimate labour market insider. For three years it has treated the Youth Wage Subsidy as a political football in the tripartite alliance, blocking its implementation. 

The ultimate price has been paid by the labour market outsiders - particularly our 5.6 million unemployed young people.

Cosatu tried to justify its opposition on the grounds that subsidised young worker will replace unsubsidised older workers. This simply will not happen for three reasons:

1. South Africa's labour laws prohibit it; 

2. The bill introduces specific measures to prevent it; and 

3. It is not good business for firms to replace good experienced workers.  

Yesterday the DA announced our plan to overcome the major obstacles to the implementation of a Youth Wage Subsidy in South Africa. Today Cosatu confirmed our fears by coming out so strongly against the Employment Tax Incentive Bill.

The DA will do everything it can to fix the bill currently before Parliament and help to introduce a real, strong Youth Wage Subsidy. 

We will stand against any opposition from Cosatu both inside and outside Parliament.

Statement issued by Tim Harris, DA Shadow Minister of Finance, October 15 2013

Click here to sign up to receive our free daily headline email newsletter