Trust can improve S.Africa labour market - CNBC Africa

Trust can improve S.Africa labour market

Southern Africa

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“One of the real challenges we’ve got at the moment is that we don’t seem to be operating with the right levels of trust to introduce labour market reform which is difficult at the best of times,” Todd from Bowman Gilfillan, a prominent South African law firm, told CNBC Africa on Tuesday.

“They are not insurmountable challenges and I think that what they need to prepare the groundwork is to re-establish a kind of common vision, a new social contract, re-establish levels of trust. We’re ultimately all in pursuit of the same outcomes in economic development.”

South Africa has a workforce of more than 18 million people the country’s labour force increased by 144 000 between the fourth quarter of 2012 and the first quarter of 2013.

In order to continue this progress, government needs to play a leadership role in changing and improving national policy.

“I think there’s a lack of political courage. Our leadership in all of them, in the ANC, COSATU, they’re split into factions also so there’s a huge amount of distrust there. The moment there’s no unity in leadership, the factions are reluctant to move,” added Gerhard Papenfus, the CEO of the National Employers Association of South Africa.