/ 1 August 1997

Job losses continue in first quarter

FRIDAY, 12.00NOON

GOVERNMENT’S hopes of creating 252 000 new jobs this year appear set to be dashed as latest employment statistics released by the Central Statistical Service show that SA’s formal, non-agricultural economy shed another 42 000 jobs in the first quarter of this year.

Government’s growth, employment and redistribution strategy (Gear) had projected the creation of 126 000 jobs last year and 252 000 this year, but the job market has shrunk during this time. The latest employment figures come at a time when SA’s economy is about to enter a recession.

The latest CSS figures show jobs were lost in most sectors of the economy, including government which had, until now, been creating employment despite government’s stated intent of cutting public sector employment. Biggest loser was manufacturing, where 14 000 jobs were lost in the first quarter.

The jobs figures are likely to cause government to rethink the application of its Gear strategy.

BUSINESS BRIEFS

MUGABE IN SA ZIMBABWEAN President Robert Mugabe paid a rare visit to South Africa on Friday to attend the gala launch of a Zimbabwean investment fund. Mugabe and President Nelson Mandela will jointly launch the multi-million dollar Africa Resources Investment Fund, aimed at Zimbabweans working abroad. About four million Zimbabweans live and work in South Africa lawfully or illegally. The fund has attracted Zimbabwean investors in the United States, Britain and Botswana.

ONE HOUR STRIKE ON MONDAY COSATU’S “rolling mass action” campaign against the Basic Conditions of Employment Bill begins on Monday with a one-hour work stoppage from 10 to 11am. Workers will down tools and submit their demands to the management of individual companies, but no big rallies have been planned, the union announced on Friday.

The SA Chamber of Business advised members to reach agreement with their workers on moving their lunch hour forward to minimised disruption. The principle of no-work-no-pay should also be applied, Sacob said.

ESKOM UNIT TRUSTS

The financial services group, Coronation has teamed up with electricity parastatal Eskom, to launch a unit trust aimed at small investors, to begin on Friday. The new trust, Coronation Specialist Bond Fund, will be 80 percent invested in Eskom bonds, and the remaining 20 percent in government securities. The trust offers an alternate source of funding for Eskom and is ideal for high-volume, small transaction business. Participants must invest a minimum lump sum of R10 000 or monthly investments of R1 000.