COSATU slams government’s decision to retrench 67,000 elderly CPW workers

The Congress of South African Trade Unions (COSATU) has strongly criticized the government’s decision to terminate the contracts of 67,000 elderly workers in the Community Works Programme (CWP). The Department of Cooperative Governance and Traditional Affairs (COGTA) announced that workers aged 50 years and older would not have their contracts renewed, citing budget constraints as the primary reason.

COSATU’s Outrage and Planned Response

COSATU has expressed deep concern over the retrenchments, labeling the decision as unjust and short-sighted. The union has vowed to intervene by seeking an urgent meeting with COGTA Minister Thembi Nkadimeng and Finance Minister Enoch Godongwana to advocate for the reversal of the decision.

Mathew Parks, COSATU’s parliamentary coordinator, voiced the union’s dissatisfaction, arguing that the government should explore alternative cost-cutting measures instead of targeting vulnerable workers.

“We think it’s unacceptable. We have an unemployment rate of nearly 42%,” Parks said. “It’s beyond immoral for the government to decide that 67,000 people must exit the programme. With all the limitations of this programme, it pays the minimum wage, and those who are on it don’t have any alternative. They’re not going to find jobs in this economy, and they don’t qualify for the old-age grant—they’re five years too young.”

Impact on Workers and Communities

The CWP, introduced to alleviate poverty and unemployment, provides a lifeline to marginalized individuals by offering them opportunities to earn a minimum wage. For many of the 67,000 workers affected, this program has been their only source of income.

The retrenchment decision disproportionately affects older workers who are too young to qualify for social grants but face significant barriers to securing employment in an economy plagued by high unemployment and limited job opportunities.

Critics argue that the retrenchments could deepen poverty and exacerbate inequality, particularly in rural and underserved communities where the CWP plays a crucial role in sustaining livelihoods.

Government’s Justification and Budget Constraints

COGTA has defended its decision, citing severe budgetary pressures as the main driver. The department explained that tough choices were necessary to manage its limited financial resources effectively.

However, COSATU and other critics contend that targeting low-income workers is not the solution. Instead, they suggest reallocating resources from wealthier segments of society or cutting wasteful expenditure within government operations.

Broader Economic Context

South Africa continues to grapple with an unemployment crisis, with the official unemployment rate hovering around 42%. For older workers, particularly those with limited education or skills, the job market offers few, if any, opportunities.

This decision comes at a time when the country is also dealing with high levels of inequality, stagnant economic growth, and a mounting cost-of-living crisis. Retrenching workers from critical programs like the CWP, COSATU argues, will only worsen the situation.

Call for Alternative Solutions

COSATU has called on the government to explore other options to address budget constraints without harming vulnerable workers. Suggestions include:

1. Targeting Wealthier Segments: Introducing or increasing taxes on high-income earners and luxury goods to raise additional revenue.
2. Reducing Wasteful Expenditure: Curbing inefficiencies and corruption in public procurement processes to free up funds.
3. Reprioritizing Spending: Allocating resources away from non-essential projects or expenses to support employment initiatives like the CWP.

Parks emphasized that the government should focus on supporting its citizens rather than cutting vital programs: “The wealthy should be targeted for cuts, not the poorest and most vulnerable.”

Union’s Commitment to Fight for Workers

COSATU has pledged to continue advocating for the affected workers, warning that the retrenchment decision could have far-reaching social and economic consequences. The union plans to pressure the government through negotiations and public campaigns to reverse the decision and protect the livelihoods of those impacted.

Conclusion

The government’s decision to retrench 67,000 elderly CWP workers has sparked widespread condemnation from COSATU and other stakeholders. As the debate continues, the focus remains on finding equitable solutions to budget challenges without further marginalizing vulnerable groups. For the affected workers, the hope lies in the government reconsidering its approach to ensure their survival and dignity in an increasingly uncertain economy.

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