Framework Agreement Signed at Jobs Summit

The Presidency

A framework agreement that is both “ambitious and realizable” has been signed at the Presidential Jobs Summit.

President Ramaphosa announced this during a speech at the opening of the Jobs Summit in Johannesburg.

The president added that the framework agreement, signed yesterday, is the “product of intensive engagement among the social partners over several months, in a spirit of cooperation, consensus building to address a problem that affects all of us”.

In particular, the framework agreement provides the “outline of an emerging social compact to grow an inclusive economy and fundamentally transform our society”.

The president declared that, by signing the agreement, the social partners were showing that they are capable of developing a new social compact for jobs, growth and transformation.

The Jobs Summit was also described as the “start of a process of engagement and collaboration that will intensify in the coming months”.

“This Jobs Summit is not a once-off event, but the first phase of an extensive process in which all social partners will work closely together to improve growth, protect existing jobs and create
new jobs”.

Some of the steps agreed upon include creating new jobs and retaining existing ones, avoiding retrenchments and supporting struggling companies, the revival of the training layoff scheme, the setting up of rapid response teams of experts to assist business in crisis, considering all possible alternatives and opportunities before retrenchment is considered such as salary sacrifices for executives and the foregoing of dividends, embarking on an export drive that prioritises manufactured and processed goods, the investment of R100 billion over five years by the financial sector in black-owned industrial enterprises and concrete interventions to boost employment designed to create an additional 275 000 direct jobs per annum.

The president also highlighted the need for South African companies, government and consumers to buy local in order to boost domestic demand

“The framework agreement goes into detail on measures to promote local procurement both within the public and private sectors – even to the point of outlining interventions in specific sectors and companies”.

Sabinet Cape Town Office