Deputy President Mashatile Calls for Urgent Action to Revitalize Economy and Labour Market

With economic growth stagnating at 1.5%, Mashatile said the current rate is inadequate to address pressing challenges such as unemployment, poverty, and inequality.

Deputy President Paul Mashatile has acknowledged the country’s slow economic growth and its failure to fully capitalize on investments and infrastructure development to stimulate economic expansion. Addressing labour leaders at the annual Nedlac Organised Labour School in Pretoria, Mashatile emphasized the need for collective efforts to accelerate implementation of agreed sector plans and ensure tangible outcomes for workers and the economy.

Economic Challenges Highlighted

Mashatile cited recent developments in key sectors, including the steel industry, where ArcelorMittal South Africa has proposed closures and production cuts, potentially affecting thousands of jobs. Similarly, the mining sector has seen significant employment reductions, compounding the nation’s economic struggles.

With economic growth stagnating at 1.5%, Mashatile said the current rate is inadequate to address pressing challenges such as unemployment, poverty, and inequality.

“We want to see much bigger growth going forward to tackle these issues. Austerity measures are largely a consequence of an economy that isn’t growing as envisioned,” he said.

Labour Market Interventions and Achievements

The Deputy President reflected on policy successes over the past three decades, including the introduction of:

• A national minimum wage to protect workers’ earnings.
• The two-pot retirement system, which offers financial flexibility to retirees.
• Improved social benefits for workers and their dependents.

Despite these achievements, challenges such as high unemployment, gender-based violence, and social inequality persist. The COVID-19 pandemic, Mashatile noted, exposed vulnerabilities in the economic framework but also demonstrated the power of collaboration between government, unions, and the private sector in protecting livelihoods.

Signs of Hope in the Labour Market

There are positive indications, Mashatile said, pointing to the recent drop in the official unemployment rate from 33.5% in the second quarter to 32.1% in the third quarter of 2024. This decline, the first in a year, reflects early signs of recovery in the labour market.

“The labour movement, as the backbone of our nation, must continue to push for economic transformation and ensure that growth benefits all,” Mashatile added.

South Africa’s Role on the Global Stage

Mashatile highlighted South Africa’s hosting of the G20 Leaders’ Summit this year, the first time an African country has chaired the summit. He emphasized its importance for advancing the Global South’s development agenda and influencing global financial institutions to prioritize social justice.

Through the Civil Society 20 (C20), South African labour unions are expected to contribute to reshaping global policies on poverty, unemployment, and inequality.

Collaboration for Economic Transformation

The Deputy President called for renewed solidarity among stakeholders to address income inequality, improve living standards, and foster a globally competitive labour market.

“We are not just fostering economic growth but building a South Africa where every worker feels valued and empowered,” he said.

President Ramaphosa at the World Economic Forum

Mashatile noted that the Nedlac Labour School coincided with the World Economic Forum (WEF) in Davos, where President Cyril Ramaphosa and his delegation are advocating for South Africa’s economic and development priorities on the global stage.

“This representation underscores South Africa’s role as a key player in the global economy and within the African continent,” Mashatile stated.

Conclusion

Mashatile urged labour leaders and stakeholders to recommit to the principles of solidarity, equity, and justice, emphasizing that the collective strength of government, unions, and the private sector can overcome modern challenges.

“Together, through collaboration and collective action, we can create a future of dignity, equality, and prosperity for all workers,” he concluded.