Economists react to President Jacob Zuma’s recovery plan

By Khanyisa Tabata
10 August 2009

President Jacob Zuma says a series of measures to assist companies that have been affected by the economic crisis will be implemented. Amongst them, is the introduction of a training lay- off scheme estimated to cost government R2.4 billion.

President Zuma said the job fund, is aimed at assisting in the training of workers affected by the recession, by temporarily suspending their work for training purposes.

They will get a training allowance, pegged at 50% of the basic salary, to a maximum of R6 239 a month.

Zuma says: “There is no doubt that this represents a relief for employers in terms of remuneration burden and that it will also provide some income for those employees who may have lost their jobs.”

It has been reported that the slow down of the economy will only get better when people regain their confidence to spend and when banks are willing to lend money again.

Trade Union Federation Cosatu has also welcomed the plan but cautioned companies against abuse of the initiative.