Volume 11, No.4 - Nov-Dec 2002

Trade Union news

The Labour Job Creation Trust

How your money is creating jobs

By Josephilda Hlope-Nhlapo, COSATU Social Policy Coordinator

The Labour Job Creation Trust was conceived at the Presidential Job Summit in 1998, just after poverty hearings and the first national census had highlighted the terrible magnitude and effects of poverty, inequality and joblessness in South Africa.
The summit decided that all constituencies would act to "act in concert to create jobs, stable and fair industrial relations, respect for worker rights and sustainable growth and development". Several projects were to be implemented, including:

• Sector summits
  
• The Proudly South Africa campaign,
  
• Small business promotion, especially tourism,
  
• Labour intensive housing projects
  
• Development of human resources through education and training,
  
• Comprehensive social security,
  
• Youth brigades to help develop community based public works
  
• Expansion of Government's infrastructure and special employment programmes, enabling quick job creation, especially for the vulnerable sectors.

Women and the disability sector were to be given special attention.
All players in the economy pledged support for job creation.

• Government pledged to use proceeds from the demutualisation funds to establish the "Umsobomvu fund" dedicated to the youth.
  
• A training levy was to be established;
  
• Labour called on ALL to sacrifice one day's wage to establish the Labour Job Creation Fund.

We knew that the one day's sacrifice would not solve the unemployment and poverty crises but believed it would make a significance difference. The trust has collected about R90 million.
About 3,300 applications, worth about R4.5 billion, were captured in the LJCT data base. The appraisal and approval stage is now over. It was time-consuming, as the trustees had instructed Development Bank of Southern Africa that the project appraisal should include a physical visit before a final recommendation could be made. This is to ensure that the project is not a one-man show and that it does really exist.

An evaluation model based on the trust deed criteria was used to sift through projects, measuring how well the project complies with LJCT criteria (women, youth, HIV/AIDS, poverty alleviation, rural, skills development including ABET), how sustainable the project is and how many jobs would be created.
627 projects were turned down due to financial constraints and because they did not fit the job creation fund criteria. There also was a regional bias to provinces with the deepest poverty and highest unemployment.

Projects approved

About 57 projects are being implemented. Another 19 have been approved and the agreements are to be signed soon. Total money disbursed stands at around R4 million. All in all, about R37 million has been committed. Projects that have been rated and fit the LJCT criteria are worth R1 billion. 2600 permanent jobs have been created.

Projects approved include:

Free State: Centre for Uplifting Rural Communities, Boitelo National Aids Council, Nthabiseng Joint Agricultural Project, Bongo Meat and Vegetables, Rephedisitswe Community Telecommunity Centre, St Martins Community Project and Creche. Bophelo community Garden, Bomme Sewing Project, Tsohang Garden Project, creating in total about 300 jobs

Mpumalanga: Tswakanang Farming Project, Ikageng Sewing and Printing, creating 90 jobs; other projects are being finalised

Eastern Cape: Dongwe Community Development Forum, Christian Harvest Youth Outreach, Rural Support Services Network, Ikwezi Lokusa Tourism Village, Phakamani Youth Development Forum, Pondo Development Trust, Healthcare Trust, Msengeni Agricultural Project, Teko Springs Community Agricultural Project, Mgababa Community Project, Masakhane Bricks, Tyatyora Agriculture expansion and irrigation, creating in total about 1300 jobs

Limpopo Province: Millennium Creche and ABET, Matavhela Early Learning Centre, Baleni Tourism Association, Mandiwane Stone Crusher, Kgautswane Development Programme, Copperspark Development Centre, Pfumane Poultry Project, Acornhoek community Development, Etlela Kahle Initiative, Ahi-Tirheni Community Garden, Partners in Development, Lehlabile sewing Project, Zava Civics Organisation, Sanco Community Hall, Tswelepele Women's Projects, Nakampe Community Centre, creating in total about 400 permanent jobs

KwaZulu Natal: Lethukukhanya Women's Organisation, Faith Development Organisation, Sikhethokuhle Creche, Imbali Yetsakane Club, Ubuhle Betsakane Club, Sakhisizwe Organisation, Ubumbano Community Gardens, Isivivane Community Project, Siyazama Vegetable Garden, Manzengwenya Community Based Agriculture, Enkanyezini Community Development, creating about 240 permanent jobs

Gauteng: Tirheni Community Garden, Thusanang Pre-School and Educare Centre, Paul Junickel Home, Philodolphia National Youth Directorate, Shadvaal Association for the Disabled, creating about 200 jobs.

North West: Makose Development Committee, creating 67 jobs.

A meeting of the Trustees on 10 October 2002 approved projects which will create 1900 new permanent jobs and the Trust has resolved today to commit itself to spend two thirds of the total fund by the end of 2002.
The total amount committed to projects (i.e. those projects that have signed agreements with the communities) is R8,615,000. R20 million has been forwarded to the DBSA to accelerate implementation. About 1084 permanent jobs have been created with more than 1000 temporary jobs created during the first phase of these projects

For many of these projects there are partnerships with the Department of Labour for training and, in some cases, with the local governments, or even traditional leaders, where leaders have given land for farming or setting up of tourism facilities. There are discussions amongst the trustees that once Umsobomvu is up and running some of the youth projects that are currently with the Job Creation Trust could be forwarded to them for support. A formal discussion is still to be proposed with Umsobomvu.
The Trustees wish to thank all the workers, most of whom do not get a living age for having contributed to the fund.