/ 26 January 2006

‘Solution to unemployment lies in training’

South African trade union Solidarity on Wednesday launched an initiative aimed at addressing the lack of skills in South Africa’s labour market.

The union’s general secretary, Flip Buys, addressed the launch of Sol-Tech, the union’s initiative that also aims to assist enterprises with the implementation of their skills-development programmes.

The correct implementation of the programme entitles firms to claim back up to 70% of the monthly levy from the South African Revenue Service (Sars) while enabling employees to improve their qualifications and skills.

Buys said training should be a national priority. Funds and government structures — or sector education and training authorities — are already present, Buys stated, adding that the outstanding issue is to grasp opportunities.

“The solution to unemployment lies in training. The country’s problem at present is the fact that not enough people are being trained,” he pointed out.

Solidarity has entered into agreements with training institutions including Training Gate, Centurion Academy and Growth Link. Sol-Tech training includes technical training in mechanics and electrics, in addition to short courses in management, life skills, labour relations and finance.

According to the bi-annual labour force survey released by Statistics South Africa on Tuesday, the country’s unemployment rate grew to 26,7% for the year ended September 2005 from 26,2% a year earlier.

Using an expanded definition that includes people who have not looked for work over a four-week period prior to the survey, South Africa’s unemployment rate was 38,8% in September 2005 versus 40,5% in March 2005, the survey said.

“If the economy grows by 6%, job opportunities increase by only 4,2%. The growth ceiling of job opportunities is caused by a shortage of trained workers,” Buys said.

The training facility was established after the trade union recognised a large gap in the labour market, Sol-Tech head Theuns Steenkamp explained.

“All companies are legally obliged to pay a monthly skills levy to the Sars and to have a skills-development programme,” Steenkamp argued.

“Companies pay the monthly levy, which is regarded as a tax liability, but fail to implement the skills-development programmes, due to a lack of expertise inside the company,” he continued, adding that with the new initiative, the union hopes to address the problem. — I-Net Bridge