Labour department ramps up TERS budget to preserve jobs.

By Lehlohonolo Lehana.

Employment and Labour Minister Nomakhosazana Meth remains committed to the plan of action to ensure that the employment mandate is sharpened and delivers tangible results.

Meth was speaking at the Cape Town Labour Centre, where she was unpacking the first 100 days in office following the establishment of the Government of National Unity (GNU). 

“We are seized with the mammoth task of changing the trajectory of our economy into one that resonates with the resolve of the GNU to nudge actions that will advance the three priorities, she said.”

These, she said, include driving inclusive economic growth and job creation, reducing poverty and tackling the high cost of living, and building a capable, ethical and developmental State. 

Her remarks come amid widespread concerns over a record unemployment rate in the world, South Africa’s unemployment rate fell to its lowest level in almost two years in the fourth quarter.

The last three months have also been characterised by the Strategic Plan 2025/2030 of the department, which sets out the GNU strategic priorities and principles espoused by the statement of intent of the GNU.

Meth took the time to delve into the role of inspection and enforcement, saying these were critical to safeguarding workers’ rights, ensuring compliance with labour laws and upholding fair practices. 

In the first 100 days, 17,662 national inspections were conducted during which 5,494 workplaces were found to be noncompliant, requiring enforcement notices to be issued that totalled R24,266,758.

The inspections led to the arrests of 81 employers and undocumented foreigners. They were conducted jointly with the home affairs and transport departments, the police, the Hawks and the bargaining council of the hospitality sector. 

The raids targeted the hospitality, road and freight, textile, car manufacturing and farming sectors as they are high on noncompliance with labour laws. The inspections addressed non-standard employment practices which left workers vulnerable, she said.

“This priority speaks directly to the need for enhanced capacity in our labour inspectorate, ensuring that the protections afforded by our laws are implemented on the ground.”

Meth said during this period, there was an increase in the budget for the Temporary Employer-Employee Relief Scheme (TERS), from R400 million to R2.4 billion for the current financial year. 

“This significant boost aims to shelter companies in distress and prevent employee layoffs amid unstable economic conditions.”

Meth was of the view that the increase in the TERS budget was a proactive response to volatile economic trends that threaten the livelihoods of impoverished workers and the sustainability of businesses. 

“Our goal is to preserve jobs and support companies facing financial difficulties. Furthermore, increasing the scheme’s capacity aims to reduce the risk of further retrenchments and support economic stability.

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