"Asia went through the same problem of massive unemployment, but through a lower wages policy the entire population was absorbed into the labour market," she said.
According to Bernstein, working in a factory for low wages and long hours was often the best way for these countries to get ahead. After 17 years of democracy, she said, the government was still pretending that there was another way this country could move from mass unemployment and underdevelopment to prosperity and near full employment. No such alternative existed. "When people talk of South Africa needing to become an economy that is high-skilled and high-tech, they should also explain the employment consequences of millions of people who do not have skills," said Bernstein.
Sacci president Chose Choeu said that business had been confronted with a range of policy and legislative challenges - noting specifically the proposed amendments to the labour relations framework. "Such amendments would broadly have had the impact of reducing the flexibility in the labour market, restricting mechanisms for job creation and so discouraging employment," he said.
Read the full article on www.thenewage.co.za.
