Government to cut 67,000 jobs

The Cooperative Governance and Traditional Affairs (COGTA) Department is facing backlash for its plans to cut more than 67,000 Community Work Programme (CWP) contracts of workers aged 55 and up.

COGTA Minister Velenkosini Hlabisa’s media liaison officer Pearl Maseko-Binqose told Daily Investor that the number of workers affected by the cuts is 67,328. Over 31,000 of these workers are aged 55 to 59, while just under 36,000 are aged 60 and up.

These workers’ contracts will be terminated at the end of January 2025.

This is due to budget cuts implemented by COGTA, which are set to affect community-based positions across all nine provinces.

News24 reported that the cuts are set to affect stipends, training and materials for over 255,000 participants, threatening payments for February and March.

The CWP, which falls under the COGTA department, is a government initiative that aims to provide a job safety net for unemployed people of working age. 

It provides a bridging opportunity for unemployed youth and others actively seeking employment opportunities.

It is similar to the Expanded Public Works Programme (EPWP), a nationwide government initiative covering all spheres of government and state-owned enterprises.

EPWP Projects employ workers on a temporary or ongoing basis, either by government, contractors, or other non-governmental organisations.

A large part of the CWP and EPWP’s workforce are older people aged 55 and up, many of which will be affected by these contract terminations.

South African Municipal Workers Union general secretary Dumisane Magagula told SABC News that the union is very disappointed by this announcement.

He pointed out that, in the municipal sector, there are just over 400,000 municipal employees. Over 200,000 of those are CWP and EPWP workers. 

“We have always made a call that CWP workers must be used properly to be turned into permanent workers in municipalities,” Magagula said.

He further explained that many CWP workers older than 55 would have worked with municipalities for over 20 years – since the inception of the EPWP and CWP.

“They are on that basis of temporary workers, earning an average of R2,800, without pension, without benefits, but they’ve been with these municipalities for two decades now,” he said.

Magagula argued that this shows the municipalities where these workers are employed need them, meaning there is space for them to be employed on a permanent basis.

“There are issues of funding, but we believe that funding in the municipal sector can be improved if we enhance revenue by improving service delivery and using workers correctly.”

The South African Municipal Workers Union is not alone in its criticism of this decision.

The South African Federation of Trade Unions (SAFTU) and the Congress of South African Trade Unions (COSATU) have spoken out about the decision.

In a statement released on 4 January, SAFTU condemned what it deemed the “cruel” termination of CWP contracts for workers aged 55 and above.

“This cold and calculated move further entrenches poverty and unemployment in South Africa, targeting some of the most vulnerable members of our society,” the union said.

“Workers over 55, who have dedicated over a decade of their lives to these programmes, are being cast aside without regard for their livelihoods or critical contributions to their communities.”

“This decision leaves them to face starvation and despair in a country with no comprehensive social security system.”

COSATU’s Parliamentary Coordinator, Matthew Parks, also told SABC News that this decision is deeply concerning.

“COSATU is deeply concerned by the announcement by the Minister for Cooperative Governance and Traditional Affairs,” he said. 

“This is quite worrying because it’s going plunge those persons into absolute poverty, and they’re going to struggle to find employment in an economy with a 41.9% unemployment rate.”

“It’s something we simply cannot afford. We shouldn’t be doing this on a moral basis.”