( 3 minutes read)
· Tito Mboweni, the architect of a number of South Africa’s labor laws, when he was the labor minister, called for review of the laws to ensure they are progressive and trigger economic growth
· The country made a number of mistakes by hastily passing various laws, which might be counterproductive in today’s context
Tito Mboweni, the architect of a number of South Africa’s labor laws, when he was the labor minister, called for review of the laws to ensure they are progressive and trigger economic growth. South Africa’s current finance minister told an investment conference recently that when he served as the first post-apartheid labor minister from 1994 to 1998 the country made a number of mistakes by hastily passing various laws, which might be counterproductive in today’s context.
South Africa’s labor laws have been praised and criticized due to their rigidity. There are various opinions aired from several quarters that many corporations are incurring losses since they do not have the freedom to adjust the labor force in tandem with their business needs. The labor unions, the minister said, would oppose any changes to the laws. Therefore, she suggested a commission should be set up to examine the laws and amend them wherever necessary. Earlier, Tito Mboweni also served as the governor of the central bank..
Last year, the government reneged on a prior deal to raise wages for 1.3 million government workers. In February Mboweni announced a new three-year pay freeze in the public sector as part of plans to contain fiscal profligacy. The finance minister preferred employment incentives to a basic income grant.
