This article was first published by The Citizen on 30 August 2024
I have been out of work for almost a year now. I am prepared to work hard to prove myself. If anything, the period of unemployment has made me more appreciative of having a job – any job. I am prepared to work for a lower salary than the recommended hourly rate and will forego labour laws that might be in my favour. No unions for me, thanks. I won’t turn to the CCMA should I feel I have been unfairly dismissed. Nor will I consider the Labour Court an option for conversations you and I cannot settle. I will not invoke the Labour Relations Act or the Basic Conditions of Employment Act. I will bring my own tea if you want and won’t assume there are lunch hours. I am willing to draw up a contract stipulating all of this – in fact, I insist on it.
Here is my certificate testifying to the above. It is called a JSEC (Job Seekers Exemption Certificate) drawn up by a lawyer. The deal you and I have is between us, not between us and the government.
Will you look twice at my application if I pitch it like this? I am hoping so, for my own sake and for that of the country.
Most people understand that unemployment is a big driver of crime, poverty and despair in South Africa. Someone has to do something, right? The ‘someone’ is normally the government and the ‘something’ is more labour regulations which have an unintended effect down the line – less employment. Research indicates that minimum wage laws result in fewer permanent positions in low-income groups, whilst onerous dismissal procedures and organised labour become costly I big corporations and crippling for small or medium-sized businesses. This has a domino effect inside the company an out. Employees know it is difficult to get rid of them and reach for the HR department or CCMA when there is a hint of trouble. They remain hired when they should be fired and it prevents new workers from entering the company, robbing the whole ecosystem of additional people who might benefit from the money and the experience. The competitive edge of the fresher and hungrier workforce gets lost. Workers become entitled and companies start viewing employees as liabilities, as much as assets.
In the middle to higher-income earning positions (where I operate as a knowledge worker), there is another lesser-known effect in the South African marketplace. When someone in the family gets a well-paying permanent position, the labourers and lower-income members of the family are less motivated to find low-paying jobs at the same time. Thus you often gain one and lose one person to the job pool.
Due to our demographic and political shifts which are themselves interrupted by load shedding the labour market has many elasticities, It is unclear how a rise in wages in the lower-income sector might affect labour demand, labour supply and unemployment. Indications are that rises in higher income groups might also lead to a depression in the local job market. It is complicated, difficult, and daunting to everyone involved. Simple solutions that all parties can grasp should be welcomed. The JSEC is one of those measures that can significantly change the dynamics. The Free Market Foundation first suggested this concept in 2003 to get the labour market to work. It could benefit the unemployed without affecting the statutory rights of the employed. The resultant increased economic growth would benefit all South Africans. It is an idea that could gain political traction as it does not interfere with current labour regulations.
While the JSEC is expected to be taken up by manual labour or lower income jobs in households and smaller businesses where the grips of compliance departments and unionised labour is not as present, it might be a helpful device for people like me who are in the creative and consulting arenas where fresh thinking is a deliverable and competitive advantage at a premium.
The proposal is that the JSEC will be valid for two years and that anyone unemployed for six months should automatically qualify.
The JSEC cuts to the quick of the psychology and business sides of both employer and worker. Instead of appealing to charity or the inherent goodness of humanity, the unemployed can appeal to the bottom line of the potential employer by assuring them that you will ask for less money and be easier to fire than other candidates. It is a consensual agreement which can be included in contract form accompanying your CV on job interviews. This is one way to deregulate the labour market without dismantling labour laws overnight. It happens at an individual level.
An objection or concern raised with the JSEC is that it might lead to brutality or exploitation of workers. Remember that the JSEC is still a legal and binding document under Common Law and workers have access to their rights as defined under the Constitution. For instance, I will put up with a lot because I want the money, but I will draw the line at assault and sexual harassment. Be assured, that once I walk into your office with a document like the JSEC I know exactly what my rights and opportunities are and agree to them.
If you are a potential employer reading this, I ask you to grant the unemployed the decency of agency. The fact that we are unemployed does not make us less human or less intelligent. But it makes us hungrier and more willing to work for lower wages. It makes us less picky, less entitled and keener to learn. It is a state that can work for both of us, for the good of the economy and the future of the country.