Youth wage subsidy: DA Youth welcomes Gwede Mantashe’s support for incentive to employ young people

The DA Youth welcomes ANC Secretary-General Gwede Mantashe’s comments concerning the introduction of a Youth Wage Subsidy. Mr. Mantashe is quoted in this morning’s Sunday Times defending the proposal, which the DA, the DA Youth, the Harvard Panel and Minister of Finance Pravin Gordhan have all consistently advocated over the past year, but which has fallen foul of the ANC’s alliance partner Cosatu.

Mr. Mantashe is quoted saying:

“All that we are saying is that the wage subsidy is an incentive for employers to employ young people. We are not going to create new salary and wage levels because you have a subsidy. We are going to be subsidizing the employment of young people in conditions that are already existing in a particular company. All you do is that if the employer says they pay R2 000, we say we will put R500 as an incentive.”
This is exactly right, and it is exactly why we have been campaigning for the introduction of a youth wage subsidy, and why wage subsidies are a central feature of the DA’s economic policy.

We believe that Mr. Mantashe and his colleague Minister Gordhan deserve a great deal of praise for their handling of this matter. They have clearly been instrumental in spearheading this proposal within the ANC, they have played a central role in convincing President Zuma to adopt it, and they have approached the entire debate in a way that places the interests of the South African people ahead of those of particular interest groups. Youth unemployment is one of the major problems we face in South Africa, and so it is heartening that two officials at the centre of the Zuma administration appear to understand the value of a policy that will genuinely expand opportunities, and improve skills development.

We can see no good reason why unions should continue to oppose a youth wage subsidy.