I fail to understand the 'youth wage subsidy' fund

About 5 years ago, I did a research project about the American elections and as you know, this was the most watched election and at it's centre stage Barack Obama who was later inaugurated as President of America.

At the time of writing this project I covered the financial fall of the American economy showing it as one the greatest challenges the candidates would face as well as our own President Jacob Zuma. I wrote this project and passed extremely well with my first year of journalism, however I failed to realise the reality of this point and that was how it would undoubtedly affect South Africa.

The economy shapes and forms the basis of any industry in all spheres and therefore, what I really want to talk about is the youth wage subsidy. A great idea in its essence, however does it really solve the crisis and will it have lasting change on the current unemployment rate.

It was with pure sincerity perhaps when the idea was first presented and especially since opposing parties agreed with our President for a change, however it wasn’t the first time I had heard a political leader suggest such a policy. In fact UDM leader Bantu Holomisa had apparently stated years prior to 2012, that government and companies should offer small incentives for volunteering youth.

In what I remember Mr. Holomisa saying is that, it was not fair on a young person to spend time volunteering trying to get experience and not be supported somewhat financially just to cover the basic needs such as transport to the place of where they were volunteering.

It’s almost 8 years later and I truly understand this as a volunteer, however I have doubts when it comes to the Youth Wage Subsidy fund.

At its core, its aim is to award companies’ incentives on the basis that they hire unemployed youth and pay them a stipend for a specific amount of time, which is fine. In reality it may not work, because if internships or work experience currently speaking come with the condition that “no guarantee of permanent job” at the end of the contract that we sign what would stop this clause from appearing with the above mentioned incentives.

Another important factor is COSATU who continually dominate the headlines with the highest membership records, yet fail to do the simple duty of a true union (this is in my opinion) oppose this policy as they believe that it would encourage an onslaught of retrenchment of the older working force. To some extent this would be true, considering that work productivity in South Africa is not on par with the economy that we should have.

So this begs the question, for how long government, unions and corporate South Africa will sit on their heads expecting a solution.

If I had known what the Liehmans Bank financial fall really meant or at least had the financial education we so badly need at high school level perhaps as a young person, I would have spent time finding opportunities to skill develop, volunteer and utilize the information accessible to better myself in preparation for a country where getting a simple retail assistance job has become extremely hard.

Information always allows for preparation and that is what the youth need or at least I would like to believe we understand.

Written by Amanda O Mathe for Youth Tube. Follow her on Twitter @onapower.