Fedusa supports youth subsidy

Fedusa says the proposed Youth Wage Subsidy will help fight unemployment in the country.

Hellen Zille marches. Picture: Andrea van Wyk/EWN

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) on Thursday backed the Democratic Alliance (DA)'s call for the implementation of the Youth Wage Subsidy.

Finance Minister Pravin Gordhan first proposed the subsidy back in 2011.

But the Congress of South African Trade Unions (Cosatu) opposes the proposal, arguing that companies could hire young workers to replace older ones, in a bid to make money.

On Thursday, Fedusa General-Secretary Dennis George said the grant could create jobs and boost the economy.

"We can't sit on this time bomb of young people being out of employment."

DA spokesperson Mmusi Maimane said Fedusa will help in their quest to have the subsidy implemented.

"[Fedusa] will be lobbying with their different constituencies. They will be speaking to the Minister of Economic Development [Ebrahim Patel] and [National] Treasury."

In March, DA members took to Cosatu House in central Johannesburg to demand that the trade union accept the Youth Wage Subsidy.

The protest turned violent when both Cosatu and DA members threw rocks at each other.