Pretoria - More political parties have commended Finance Minister Pravin Gordhan's 2011 budget for his commitment to job creation, but were cautious about whether there will be actual results.
Under pressure to realise President Jacob Zuma's and the ANC's grand jobs vision, Gordhan has forked out R150 billion from the R979 billion budget to the jobs creation package.
Some opposition parties say the R150 billion in job creation projects will not bring a significant improvement in the number of job opportunities for South Africans.
Although some have welcomed government's R5 billion allocation (over three years from April 2012) to encourage employers to take a chance on inexperienced workers, some parties are saying it would create a two-tier labour market.
Cosatu is opposing the youth wage subsidy, saying it will also encourage employers to get rid of workers as soon as their subsidy falls away.
"The youth wage subsidy not only introduces a two-tier labour market system that we oppose, but will be abused by the unscrupulous employers who will keep an army of young workers permanently and replace secure and better paying full time jobs currently held by older workers.
"This in return will undermine the government's stated objective of creating decent work, addressing inequalities and poverty," spokesperson Patrick Craven said.
Other unions like the SA Democratic Teachers Union (Sadtu) were also of the same view.
"They can create a situation where full time employment is sacrificed in favour of subsidised employment. Would this not lead to a situation where the youth may never receive permanent employment?" asked spokesperson Mugwena Maluleke.
Sadtu called on government to consult all the stakeholders on this particular matter and called on government to develop mechanisms so that the system was not abused.
However, some like the Democratic Alliance welcomed the wage subsidy, saying it takes into consideration the millions of young South Africans despondent as a result of the socio-economic disparities still characterising the South African economy.
"A wage subsidy will stimulate growth, create jobs and place our country on the right path. In the face of union obstinacy, the minister has made a courageous decision," the DA's Dion George said.
Gordhan said the youth wage subsidy was one idea among hundreds and all government wanted was to ensure is that young people have the opportunity and experience to work and be paid.
The minister said 42 percent of young people between the ages of 18 and 29 did not have any work. "We must offer young work seekers real hope, where at present there is despair. We need to do things differently," explained Gordhan on Wednesday.
Trade union Solidarity was also critical, saying government's plans to invest R150 billion in job creation projects will not bring a significant improvement in the number of job opportunities for South Africans.
"The expenditure of R14 billion on FET colleges, R20 billion on SETAs and R5 billion on the National Skills Fund will not increase job creation," deputy secretary general Dirk Hermann said.
Over the past few years, these institutions had been heavily criticised because of their inefficiency and even corruption.
"Although not all FETs and SETAs are inefficient, further money injections in this area do not provide direct encouragement for job creation."
According to Hermann, government should rather have implemented drastic measures aimed at encouraging entrepreneurship and should have exempted small businesses from unnecessary regulations that ultimately hinder job creation.
Some parties said the budget was balanced and showed that the Treasury was in firm control of the country's economic policy.
"The budget signals an important commitment and movement by government towards funding our five priorities," the SA Communist Party said in a statement.
"It further signals a strong intention to align government expenditure to the new growth path that government is pursuing," it said.
The ANC ally welcomed Gordhan's announcement on funding for the National Health Insurance (NHI), but cautioned against financing the insurance through a value added tax, as this would have a negative impact on the poor.
The education budget was welcomed by many, who said it was an indication that the government continued to see education as a priority and a key tool to addressing the problem of skills shortages in the country.
But Sadtu was concerned that the budget was also not clear about measures to increase administrative personnel in order to unlock the time needed for teaching by teachers.
Failure to address this would go against the President's Triple T campaign, which called for more teachers, textbooks and time, it said.
"We need better remuneration for teachers so that the profession can attract and retain new talent and quality teachers," Maluleke said.
