ANC+shelves+labour+reforms



=ANC shelves labour reforms=

Finance 24, Jul 03 2005 04:32:30:397PM
Pretoria - Proposed labour reforms to boost job creation have been shelved by the African National Congress' national general council (NGC) meeting in Pretoria for further research and debate.

ANC secretary general Kgalema Motlanthe said the council agreed that existing labour policies guaranteed stability and an easier resolution of conflicts.

Motlanthe said: "The council directed that further research be conducted to look into the impact of the labour market framework on job creation.

"Detailed research will be commenced without delay so we can arrive at a more informed position."

In the meantime, there would be no change, Motlanthe said.

A discussion document presented to the council meeting suggests that a number of small adjustments to labour market regulation could boost job creation.

Among other things, it proposes as one alternative a "dual labour market" with slacker labour laws for smaller companies.

The document, focusing on economic growth, refers to contradictions in present policy between the aim of small business development and a high regulatory burden on small business.

It also recommends the pursuit of an economic policy allowing for a more competitive exchange rate for the local currency.

ANC spokesperson Smuts Ngonyama said no specific strategy was discussed on the exchange rate.

But there was agreement on the need to achieve "some sort of an equilibrium" satisfying both importers and exporters.

Ngonyama said: "The feeling is that if we work in such a way that we strengthen the import and export sectors, increasing satisfaction on both sides, we would be able to reach some kind of a competitive exchange rate."

Inflation targeting was also not discussed in detail, Ngonyama said. But there was general appreciation of the country's current low interest rates, and concern that this was not reflected in commodity prices.

On the ANC's general economic thrust, he said the NGC committed itself to "fundamental transformation" of the economy in order to integrate the country's so-called first and second economies - one rich and one poor.

On land ownership, the council considered a proposal for a moratorium on the sale of land to foreigners, but decided there was a need for further discussion on the matter.

It also identified the need for a comprehensive strategy on availing state-owned land for housing and reform purposes.


 * From: http://www.finance24.com/articles/economy/display_article.asp?Nav=ns&lvl2=econ&ArticleID=1518-25_1731304