The cost of government

[tec0]

In any event, we are losing grip on the things that are important. Fact is we need clean water, we need a working purification plant so that all the condoms, tampons and wedding rings can be extracted from the faeces and other rotting things like the many dead cats you will find in our storm drains. Now I am making a point of it to make it sound horrible because that is what it is. Horrible!

So if it was you that needed to keep the water supply going wouldn’t you want a bit more money to make it worth your while? Perhaps a good medical plan to go with it? Fact is; when is asking to little asking too much?

[Dave A]

The Federation of Unions of South Africa (Fedusa) said on Tuesday it had concluded an agreement to work with government, organised business and labour to tackle recession.

The agreement comes after Fedusa met Economic Development Minister Ebrahim Patel earlier on Tuesday to discuss the impact of the global recession and the framework for South Africa's response to the international economic crisis.

Fedusa general secretary Dennis George said in a statement the first aspect of the agreement would be to obtain serious commitment from CEOs of companies.

They would also seek commitment from all the relevant Sector Education Training Authorities to urgently implement the agreed upon Training Lay-off Plan.

George said this would be done by ensuring that the R2,4-billion training allowance reached the pockets of working people.

The second aspect would be to urgently meet the CEOs of the four local major banks to ensure that credit flowed back into the economy to rekindle demand and supply.

Fedusa also planned to meet organised business and labour to nominate representatives to formulate a common pledge to guide them in addressing further retrenchments.

"This national pledge will commit and bind companies not to retrench workers during the current recession," George said.

He said Patel has also pledged on behalf of government with Fedusa to fill all vacant public service positions as a matter of urgency.
full story from M&G here

Any chance the national pledge will also bind workers not to demand crippling pay increases?

[Yvonne]

They would also seek commitment from all the relevant Sector Education Training Authorities to urgently implement the agreed upon Training Lay-off Plan.

George said this would be done by ensuring that the R2,4-billion training allowance reached the pockets of working people.

Can anyone elaborate on this?

Yvonne

[Marq]

Good question - reminds me of the guy, who while standing in the UIF handout queue, complained bitterly about the delay as he he a job to go to. (True story - I was there).

Is this going to be a hand out grant thing again or a proper training scenario so the guys being laid off can better themselves and get into a more skilled job position?

[Dave A]

It's part of Jacob Zuma's response plan to the recession.

Can anyone tell me this - apart from showboating, name one constructive thing organised labour is doing to turn the tide of this recession?
One concession?
One sacrifice?

[Dave A]

For example:

South Africa's National Union of Mineworkers (NUM) said on Wednesday its members had rejected the latest wage offer from Impala Platinum, and demanded a higher wage rise plus housing and transport pay.

Impala Platinum (Implats), the world's No. 2 producer of the metal, is facing a strike by more than 20 000 workers at the company's main mine.

The group had on Sunday offered a one-year wage agreement with a 10% pay increase for all workers.

"They have rejected the offer," NUM spokesperson Lesiba Seshoka told Reuters.

"They want the wage deal to include transport and housing allowances, and they also want a pay rise of 13%."
full story from M&G here

Is there no concept of where inflation comes from, and from there what drives interest rates?

And to extend that line of thought, where does capital formation come from? And how important is capital formation in the creation of jobs?

In lifesaving you are taught the greatest danger to you in the ocean is the drowning person you are trying to rescue. I kinda feel the same way about organised labour at the moment.

[Yvonne]

Our company complied with all the requirements of our SETA.
We use a professional consultant, who submits everything on our behalf.

I don't have the ability to skills to deal with the returns, so have no way of verifying that everything is correctly submitted, as we have no correspondence from the SETA advising a claim is denied, assuming all is in compliance.

We have yet to receive a single cent for rebates in training provided to our employees from the Skills Development Fund.

Yet the TETA claimed they still had the funds available to carry out their committments, now those funds can be diverted?

I have no desire to incur additional wasted time and effort to attempt to follow this up, assuming our rebate is hardly worth the trouble.

But if many small businesses have the same attitude as ours, how much is actually being received in rebates from SETA's?

Yes, Dave your quote comes to mind! -

Understanding the will of the people:
Ten people who speak make more noise than ten thousand who are silent. Napoleon Bonaparte.

better follow this up.

Yvonne

[Dave A]

50% of your contributions are recoverable as a mandatory grant, Yvonne. It's pretty much a case of doing the paperwork and the SETA has to pay up. Given a thrshold of R500k before you have to pay, that's a minimum of R2500.00 per annum that should be coming back.

Not a bad return for filling out some forms.

[Yvonne]

Can anyone tell me this - apart from showboating, name one constructive thing organised labour is doing to turn the tide of this recession?
One concession?
One sacrifice?

This is why I feel discouraged, we need "hope" that there is understanding of the problems in their entirety.
Our country needs the "feel good" stories of concessions and sacrifices made by the "powers in control".

Is it possible to separate organized labour from the ANC, etc. ?
Expanded govt. and public servants ("Filled from labor ranks potentially!), security, vehicle dealerships etc.

I have concerns: the decision process of the industry sectors targetted?
Tenders to SETA's: family, friends and cronies as providers of the training?
Definitely providers favored by B.E.E.

Pockets of the workers?

George said this would be done by ensuring that the R2,4-billion training allowance reached the pockets of working people.

The funds should not "reach" anyone's pockets - the target should be their minds! (Skills)

Darn! that is the basis for all the problems in the first place!
Common Sense has dissapeared!

(Note: sarcasm intended!
I do understand the concept of funds "move from the SETA's into the pockets of the working people" the economy should benefit by increase in spending etc. ), it is just that for me, this confirms the "entitlement" perspective of workers, and the material aspect rather than the emphasis being on the funds being for the ultimate good of increasing the workers skill value for potential employment.

Yvonne

[Yvonne]

Perhaps I dont understand it at all.

The rebate is calculated on your submission of training to be provided (prior year), (Can't remember the name of the return!) then with a formula of the percentage of much of the training proposed was actually carried out, plus proof provided that the courses were undertaken and paid for etc. Providing evidence regarding Accreditation of the provider of the training, that they are in line with the framework applicable for your specific industry etc?

If it is as easy as filling out a form and getting a rebate I am going to be furious with myself.

We pay approx R13,500 to Skills Development, and spend R18,000 per annum for the consultant to keep our own accreditation applications as a training provider in order.

This is my point, how many small business owners have the capacity to handle all these issues.

If the cost of professional assistance is more than the Skills Levy rebate, small business just accept it as a tax.

Do you know of any consultancy that offers a full service to small business at a reasonable cost?

We need a small business in South Africa Business Management for genuine dummies! publication. (Wiki?)

Yvonne