Abstract
M.Comm.
Unemployment in South Africa is a growing concern. With unemployment reaching proportions, poverty and related crime levels are on the increase. Government, pressured by organised labour groups, is looking at all possible means of creating employment.
COSATU, as a representative of organised labour, are calling for increased state participation in the economy in order to improve the "workers" plight. COSATU has identified retirement funds as a potential source of employment creation. Worth some R600 billion, retirement funds represent 35% or more of total savings in South Africa, and provide about 60% of local finance to companies. COSATU view these assets as belonging to their members, i.e. a large part of the funds consist of workers' deferred wages in the form of savings for retirement. COSATU believes that these funds should be invested in areas that promote their members' plight. At the end of October 2000, the Economic Empowerment Commission will have handed their formal empowerment proposals to the President. In an article, which appeared in the Financial Times on 14 September 2000, "Blueprint set out for black advancement", details were given of the Economic Empowerment Commission's expected proposals in this regard:
"The black economic empowerment commission has proposed wide-ranging recommendations to reinvigorate black economic empowerment, stimulate fixed investment and accelerate economic growth. Commission Chairman Cyril Ramaphosa revealed an outline of the full package of the commission's proposals for the first time yesterday during a joint briefing of several parliamentary committees. The commission has called on business, labour and government to reach an "investment growth" accord and adopt a national black economic empowerment strategy.