Simple solution to unemployment problem

While the government dilly-dallies and refuses to admit that part of the extra- ordinarily high unemployment rate is a direct result of strict labour legislation, there is a simple way to tackle this problem. I believe that there are three things which need to be done, all of which can be done relatively quickly and cheaply, to at least start making a dent in the unemployment rate:

1.       CHANGE ONE RULE AT THE CCMA

Speak to any employer(and there are many of them), who has lost case at the CCMA and he will tell you: “I was screwed at the CCMA and will NEVER employee any more staff again.” When asked what the CCMA stands for, they reply: “Come Collect Money Anytime.”

Why do they say this? For the simple reason that at the CCMA, the employer is deemed to be guilty until he/she proves otherwise. Apart from being, in my personal opinion,contrary to the Constitution (does it not say that every citizen has the right to be presumed innocent until proven guilty?). If so, why should it be different for business. 

A change of this rule at the CCMA, will go a long way to appeasing the business community, as what this would most likely do up front, is to reduce by about 20-30% of case that are registered at the CCMA, as the employee works on a “tata-ma-chance” basis,that the employer has to prove everything hand the is no onus of proof on him. An employee also incurs NO penalty if he/she loses the case, or if he/she lodges a frivolous case – the CCMA has to accept every case lodged.

Employers will feel far more comfortable employing more people and if one looks at the overtime worked by most companies, there are “jobs” available but not being filled, for the very reason that employers are saying “the more people I have the more problems I have.” They would rather pay their current staff at 1.5 times the normal rate of pay, than to employee a few more people and not work overtime at all the cost in may be more for overtime than for normal pay with more employees, but under the current circumstances the employer is happy to do that. I theory,this does not seem to make business sense, but talk to the employer and he will tell you that id t does make sense.  

What this is doing is giving those with jobs more of the cake and those without jobs no hope of ever being able to eat from the cake. The unions are happy with this, as their members earn more money and therefore their subscriptions which they pay to union each month is increased, as most work on a  percentage of income. Thus, the “haves” will have more and the “have- nots” will not have at all.

Until all parties (government, labour and business) see this and are prepared to work together,the unemployment crisis will remain and in fact get worse.

2.       USE A CARROT AND NOT A STICK TO BOOST UNEMPLOYMENT 

Everyone likes to get something as a “reward” – why not bring in a “reward” system for employers who increase their permanent staff compliment, by say for example giving them a 1% tax rebate, worked on a sliding-scale (ie the higher the percentage by which you increase your staff compliment, the higher is your tax rebate).

Surely the 1%UIF that these additional employees now contribute to the coffers, will offset most if not all of the rebate given to the employer? Apart from that, you will have less pressure on the UIF fund, due to less people being unemployed.

3.       BIRTH CONTROL

It is all very well having short-term solutions to unemployment, but what about long-term solutions? We already have an unemployment crisis- what is going to happen if the population increases at its current rate? We will very soon have a food crisis on our hands unless we do something about the increasing population – we need to plan NOW so that in 20-30 years, when unemployment is no longer a problem, we have this replaced by food shortages. What is the point then of being employed, when you cannot get food?

We need to look at the China policy on the one-child family –I am not saying that we should implement it in the same way, but I am sure that there could be a “reward system” introduced, which could control the increase in the population to want we want it to be. China has estimated that the system has saved 400 million births between 1979 and 2011!!  

As part of its National Health Plan, the government needs to implement a sterilisation plan,to ensure that the population does not get out of control. Remember that people are living longer lives due to medical interventions, so it is important to act now rather than to wait until we get hit by another crisis.

A benefit of the reduction in the unemployment rate will be a reduction in crime, as the two are unfortunately, by their very nature intertwined. A man that is hungry and has done have any money ior food to feed his family is a desperate man and a desperate man will eventually conduct desperate measures to rectify the situation. There are normally two choices:

1.       Stand on the street corner and beg (which is very degrading and humiliating) or

2.       Steal (even if it is on a small scale in the beginning) to survive.

Unfortunately most crime starts on a small scale and gets bigger and bigger, as the criminal gets away with it, until the person is involved in serious crimes.