'Pay workers extra so they can spend more'

Labour minister Mildred Oliphant has called on employers to pay their workers a living wage in order to stimulate the general economy.

“It means they have reasonable disposable income to spend on goods and services produced by the economy. If the demand on goods and services rises and the entire supply chain inevitably starts experiencing increase in their output volumes‚ resulting in positive social and economic spin-offs‚” Oliphant said.

She announced that the Unemployment Insurance Amendment Bill is expected to be finalised this year. That would extend the period for beneficiaries to draw unemployment benefits from eight to twelve months.

DA MP Ian Ollis said‚ however‚ the minister’s rosy picture of her department belied the true state of affairs‚ where money is wasted hand over fist instead of supporting workers.