MANYANE MANYANE
The South African Federation of Trade Unions (Saftu) and Congress of South African Trade Unions (Cosatu) have criticised the decision to terminate the Community Work Programme contracts of workers aged 55 and above.
Saftu described the decision as a ‘cruel act’ that was in line with the government’s ‘broader neoliberal agenda, which prioritises austerity and the so-called fiscal consolidation targets’ over the well-being of workers and the majority black working class.
Cosatu said the development was particularly worrying because these participants would be plunged into instant poverty and would struggle to secure other employment in an economy with an unemployment rate of 41.9%.
The federation unions were also joined by the uMkhonto weSizwe Party (MKP), which said the decision exposed the insensitivity of the Government of the National Unity’s (GNU) administration to the plight of South Africa’s unemployed and vulnerable workers.
This was after Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa announced that the contracts of people aged 55 and above would be terminated.
The termination is expected to take effect at the end of this month.
Hlabisa said this was due to budget cuts and other related issues.
Saftu’s general secretary Zwelinzima Vavi said the government’s decision reflects its ‘slavish commitment to austerity policies’ dictated by international financial institutions such as the International Monetary Fund (IMF) rather than a genuine concern for uplifting the lives of South Africans.
Vavi said despite widespread calls by the federation and other progressive formations for a R1 500 grant, the absence of a universal basic income grant exacerbates the crisis.
“Terminating these jobs forces older workers to fend for themselves in an economy where high unemployment is structurally entrenched,” he said.
South Africa’s unemployment crisis is dire, with 12,2 million or 42% of the population unemployed. Over 80% of the unemployed have been jobless for more than a year, making it nearly impossible for older workers to find alternative employment.
This decision effectively condemns them to years of poverty, as they are too young to access government pensions but too old to compete in a saturated job market, Vavi said.
“Saftu will not sit idly by while workers are discarded like convenience tools. Should the government fail to reverse this unjust decision, we will escalate our resistance through mass protests, strikes, and legal challenges. The working class cannot continue to bear the brunt of government indifference and neoliberal policies,” said Vavi.
Cosatu’s spokesperson Zanele Sabela said the federation is hoping to engage Hlabisa and the Minister of Employment and Labour to have a discussion about the Public Employment Programme which provides a decent path to permanent jobs and a living wage to millions who participate in these programmes.
“All too often, these employment programmes pay below minimum wage, provide little skills or training opportunities, and offer almost no pathways to employment. This leads to a scenario where participants become dependent on these programmes and when they come to an end, it places them and their families in crisis,” Sabela said, adding the union would also engage Hlabisa and Treasury to find an alternative to simply cutting off the lifeline to CWP participants.
“Ultimately, there needs to be a discussion about formulating a new local government model because many municipalities are currently on the verge of bankruptcy. Many of them use these work programmes to outsource permanent work to what has essentially become cheap labour. We need to ensure that participants become part of the municipalities' organogram and not just fed off to below minimum wage pay programmes,” she said.
MKP spokesperson Nhlamulo Ndhlela said the decision to terminate the contracts ‘disregards the Ministry’s earlier acknowledgement in Circular 07 of 2024, which stressed the importance of proper consultation before implementing such drastic measures’.
“The Ministry had assured the Cogta portfolio committee that no participants over 60 years of age would be exited without adequate engagement. Yet, this sudden reversal confirms what South Africans have long suspected, the GNU’s word is worth nothing. The follow-up circular by the Ministry to postpone this evil intention does not offer any comfort whatsoever,” said Ndhlela.
Meanwhile, the civic movement Save South Africa has called on Cogta to reconsider its decision. The movement said one of the biggest challenges is that a person of 55 years is highly unemployable at that age.
"Save South Africa condemns this announcement and calls on the Minister to be sensitive and to also put himself in the shoes of those he intends to retrench,” said spokesperson Tebogo Mashilompane.