/ 5 November 1997

Joblessness increases

TUESDAY, 10.30AM:

SOUTH Africa’s unemployment problem shows no signs of abating soon, as figures released by the Central Statistical Service (CSS) showed the national employment rate dropped 1.5% since June last year. Less than 5,2 million people are employed in the formal economy — a far cry from the 252 000 jobs for the year projected by the government’s growth, employment and redistribution strategy.

Other figures released by the CSS reveal the number of jobs in the first quarter of the nonfarm sector dropped by 25 072 or 0.5% in the second. In the manufacturing industry, the second quarter showed a drop of almost 2%, despite the economic growth in the sector.

However, the CSS figures do not address the increased employment in the informal sector.

BUSINESS BRIEFS

US BILL ON AFRICA STALLS The promised US bill to revamp trade policy towards the neglected continent of Africa seems unlikely to get a hearing this year. The bill aims to encourage US government and business to treat Africa as an area of opportunity rather than an area of crisis. Despite support from both parties, the bill has been kept back in the queue by other legislation the congressment consider more important, and by a disagreement between congress and the White House on who will drive Africa policy.

BRISK OCTOBER FOR FUTURES OCTOBER was the best-ever month for the SA Futures Exchange, beating February’s record. Some 1,42 million contracts worth R53 billion were traded, a third up on September. The exchange remains confident in the face of last week’s stock market crash: “These markets are designed for volatility,” said a spokesman.

VW MEN STILL AT WORK IT would appear to be business as usual for the three top directors of Volkswagen SA who were reportedly fired by the group’s parent company. Financial director Wilhelm Kirchberger and technical director Burkhard Welkener reported for work yesterday, and MD Heinrich Holtmann was said to be in Germany on “routine business”.

A spokesman for Volkswagen SA, which is suffering poor sales and labour problems, said he did not know whether the directors’ services had been terminated. A statement clarifying their fate would be issued in due course.

EMPLOYMENT BILL PROGRESSES THE Basic Conditions of Employment Bill was approved by parliament’s labour portfolio committee on Monday, despite continued objections from Business SA and the Congress of SA Trade Unions. The committee did however find several issues in the Bill that it said would need further investigation. It accepted the labour department and Cosatu’s proposal that the 45-hour week be entrenched as a non-negotiable right, and rejected proposals that small businesses be exempted from the bulk of the Bill’s provisions.

MPUMALANGA TWINSMPUMALANGA linked up with Austrian province Carintia on Monday, by signing a 12-point twinning agreement to co-operate on environmental planning and technology, Carinthia will also host a Maputo Corridor investment seminar in Klagenfurt early next year..