2014: Edition 2

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Varsity

SINCE

1942

THE OFFICIAL STUDENT NEWSPAPER OF THE UNIVERSITY OF CAPE TOWN

11 March 2014

VOLUME 73: EDITION 2

varsitynewspaper.co.za

@varsitynews

varsitynewspaper

NUMSA protests youth wage subsidy disqualified. They also have the opportunity to re-qualify in the future. The members of NUMSA are planning to strike partly because the people of South Africa were not properly involved in making this Bill, but primarily because they think that the people of South Africa have not been properly consulted for the past 20 years.

the public was only given 14 working days to provide submissions on the draft Bill

Image: Russell Grinker PROTESTS: irvin Jim speaks on NUMSA’s plans to strike against the Employment Tax Incentive Act

Thomas Mbewu ext Wednesday, March 19th, the largest trade union in South Africa, the National Union of Metalworkers of South Africa (NUMSA), will go on strike to protest the Employment Tax Incentive (ETI) Act that came into effect on January 1st.

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NUMSA is not alone in this worry; indeed the writers of the draft ETI Bill specifically addressed this.

The final version of the Bill watered down the protections afforded to workers The draft Bill states that if a business made a dismissal for the purpose of employing someone else in order to get the subsidy, then it would be required to pay back 150% of the total amount it received via the ETI in the previous year, and would be disqualified from receiving ETI funds in the future.

Despite major debate surrounding the bill, the public was only given 14 working days to provide submissions on the draft Bill. Additional subsidies were also proposed that had not been discussed publicly or at the National Economic Development and Labour Council (NEDLAC). The bypassing of NEDLAC was enough to make NUMSA and other unions consider taking the government to court. The final version of the Bill watered down the protections afforded to workers in the draft Bill. The 150% fine was changed to a fixed amount of R30 000 per person wrongly dismissed and businesses that abuse the subsidy system are not automatically

IN THIS ISSUE

When the ETI Bill was initially introduced it was controversial. The Bill proposed a “youth wage subsidy” in which private businesses would be given R1 000 a month for each employee aged 19 to 29 who was paid between R2 001 and R4 000 per month, while those paid between R4 001 and R6 000 would receive a subsidy

that tapers downwards to zero for those earning R6 000. The ANC was aware that this Bill would be met with some opposition. Enoch Godongwana, the ANC Economic Transformation Committee Head said in October last year, before the bill was passed: "We are quite mindful that there are issues that certain stakeholders … are uncomfortable with. We would entertain a discussion over the possible unintended consequences.” NUMSA has many issues with the ETI Bill. They argue that it incentivised businesses to get rid of employees and replace them with young workers in order to get the subsidy.

Since the beginning of South Africa’s democracy NUMSA, as a member of the Congress of South African Trade Unions (COSATU), has been in alliance with the ANC. Its members have tried, with many others, to encourage the government to make our society as kind and fair as possible; to get our leaders to live up to the promises of their Freedom Charter. In the face of this effort, the ETI Act will incentivise decreased job security for the old and lower wages for the young. Given this and other failures, NUMSA is now going to continue to try and foster this society from outside the ANC. At their Special National Congress last Decemebr, they called on COSATU to break from the Alliance. NUMSA plan on organising several more protests. “This is the first of a series of rolling socioeconomic strikes that the union decided on at its special national congress in December 2013,” said NUMSA spokesman, Castro Ngobese, in a press statement on February 24th. The strikes and protests on March 19th are also about NUMSA's breakaway from the ANC and the formation of a United Front that NUMSA hopes will bring together citizens who want the just and equal society promised in the Freedom Charter.

Wifi on Jammies

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“Un-African” lifestyle

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Know UCT better

CENTRE

Flappy Bird frenzy

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Varsity Cup update

VARSITY, the official student newspaper since 1942, is committed to the principles of equality and democracy.

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