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Numsa set to strike over Employment Tax Incentive Act

by , 26 February 2014
The National Union of Metalworkers of South Africa (Numsa) is set to strike today over the Employment Tax Incentive Act. And you should be watching what happens closely...

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The Employment Tax Incentive Act can help you:
Legally claim a tax incentive when you hire temporary employees 
Claim a tax incentive on learnerships 
Manage the risks and penalties involved with the Employment Tax Incentive Act
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Numsa is taking its opposition over the Employment Tax Incentive Act to the streets.

BDlive reports that the union plans to occupy the streets outside Parliament today when Finance Minister Pravin Gordhan presents his budget.

The union is embarking on a series of strikes to raise its displeasure with the Act and to highlight the issue of youth unemployment. The next strike action will be held on 19 March 2014 in all major towns and cities across the country.

The Employment Tax Incentive Act, which was signed by President Jacob Zuma in December last year is aimed at encouraging private employers, through tax incentives, to create job opportunities for young people aged from 18 to 29.

So why is Numsa opposed to the Employment Tax Incentive Act?

According to a statement issued by Castro Ngobese, Numsa national spokesperson, the unions sees the tax incentive scheme as a false solution to youth unemployment.

In the statement, Ngobese says government will simply hand over billions of rand to employers, in the form of tax rebates, while making no dent on high levels of youth unemployment.

The union adds that the tax incentive scheme will lead to the following negative consequences;
  • Subsidisation of employers for taking on workers whom they would have employed anyway;
  • Displacement of older and unsubsidised workers;
  • Creation of a multi-tiered labour market where workers in the same establishment and who are doing the same job will have different wages, benefits and overall employment conditions; and
  • Widening of inequality.

Here's why you need to watch Numsa's opposition to the Employment Tax Incentive Act

According to BDlive, 'a number of observers say these disputes are likely to weaken the labour movement. It thus remains to be seen whether the union will be able to lobby successfully against the Employment Tax Incentive Act.'

While you watch these developments, make sure you're aware of the implications of the Act. And we recommend you click here to get the Employment Tax Incentive Act DVD.

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