News / Africa
SA president in top gear to create more jobs
01 Oct 2011 at 05:50hrs | Views
South African President, Jacob Zuma has moved to shore up support among a key Cosatu ally by directing two heavyweight cabinet ministers to convince automotive bosses to increase production and create jobs, The Sowetan reported on Friday.
During his visit to Eastern Cape on Wednesday, Zuma held talks with industry leaders to ask them to buy into government's plan to produce 1.2million vehicles a year locally by 2020.
The plan, which is part of government's automotive production and development programme due to be launched in 2013, has the backing of the influential National Union of Metalworkers of South Africa.
The plan also aims to see new factories being set up to manufacture vehicle components.
The transport equipment sector creates the largest amount of jobs in manufacturing in Eastern Cape.
Numsa sees the expansion of vehicle manufacturing from 500000 vehicles a year currently as a lifeline for its members who have been hard-hit by retrenchments and "short-time" arrangements during the recession.
Presidency spokesman Mac Maharaj said yesterday that industry leaders had told Zuma that they were faced with the "challenge" of a flood of cheap vehicle components from India and China, and also an increasing number of cheaper foreign-made cars.
Rural Development and Land Reform Minister Gugile Nkwinti and Economic Development Minister Ebrahim Patel would set up new discussions with the industry "to find solutions", Maharaj said.
"They will report to the president on an ongoing basis."
If the talks between the ministers and motor industry bosses lead to any extra jobs, this will cement support for Zuma in the 260000-member metalworkers union.
Numsa has previously said it is sceptical of government's new Automotive Production Development Programme, because it feels that the government is injecting funds into the industry without making this conditional on jobs being created.
During his visit to Eastern Cape on Wednesday, Zuma held talks with industry leaders to ask them to buy into government's plan to produce 1.2million vehicles a year locally by 2020.
The plan, which is part of government's automotive production and development programme due to be launched in 2013, has the backing of the influential National Union of Metalworkers of South Africa.
The plan also aims to see new factories being set up to manufacture vehicle components.
The transport equipment sector creates the largest amount of jobs in manufacturing in Eastern Cape.
Numsa sees the expansion of vehicle manufacturing from 500000 vehicles a year currently as a lifeline for its members who have been hard-hit by retrenchments and "short-time" arrangements during the recession.
Presidency spokesman Mac Maharaj said yesterday that industry leaders had told Zuma that they were faced with the "challenge" of a flood of cheap vehicle components from India and China, and also an increasing number of cheaper foreign-made cars.
Rural Development and Land Reform Minister Gugile Nkwinti and Economic Development Minister Ebrahim Patel would set up new discussions with the industry "to find solutions", Maharaj said.
"They will report to the president on an ongoing basis."
If the talks between the ministers and motor industry bosses lead to any extra jobs, this will cement support for Zuma in the 260000-member metalworkers union.
Numsa has previously said it is sceptical of government's new Automotive Production Development Programme, because it feels that the government is injecting funds into the industry without making this conditional on jobs being created.
Source - The Sowetan
