Cosatu welcomes government extension of CWP contracts amid budget concerns

The Congress of South African Trade Unions (Cosatu) on Friday welcomed the extension of Community Work Programme (CWP) contracts for participants aged 55 and older until the end of March this year.

The decision was announced following a bilateral meeting between Minister of Cooperative Governance and Traditional Affairs (Cogta), Velenkosini Hlabisa, and Finance Minister Enoch Godongwana.

It was made in response to significant budget cuts that threatened the program’s sustainability and risked unauthorised expenditure by the Department of Cooperative Governance.

“It is imperative that we take decisive action to protect the integrity of the programme and ensure that participants receive the support they deserve,” Hlabisa stated during the announcement on Friday.

The extension particularly benefits approximately 67,000 CWP workers who were initially facing contract termination at the end of January, according to Cosatu’s response to the announcement.

The labor federation welcomed the government’s decision, noting its significance for vulnerable workers and their families.

CWP importance in addressing unemployment

The CWP serves as a transformative public employment initiative.

It provides temporary employment safety nets while aiming to help participants rise from poverty through skills development and community engagement.

Hlabisa emphasised the government’s ongoing commitment to the program’s success, while noting that consultations continue with stakeholders.

“We are currently engaged in constructive consultations and will provide regular updates as the Department works closely with all relevant stakeholders.

“Our aim is to address this issue thoughtfully, ensuring a careful balance between financial responsibility and social accountability,” Hlabisa explained.

ALSO READ: Cogta says it had no choice but to end contracts of older CWP participants

Cosatu’s response to CWP contracts extension and broader concerns

Cosatu expressed relief at the government’s decision, particularly given South Africa’s current 41.9% unemployment rate.

COSATU has applauded government's decision to extend contracts for Community Works Programme (CWP) workers. The trade union says this offers relief to over 67,000 workers aged 55 and older who were facing unemployment by the end of January. Matthew Parks, COSATU's parliamentary… pic.twitter.com/OZmaO0K5er

— Newzroom Afrika (@Newzroom405) January 18, 2025

The federation’s Parliamentary Coordinator, Matthew Parks, highlighted that the majority of affected workers are women from rural areas and townships, where employment opportunities are scarce and many don’t qualify for the Old Age Grant.

“As much as CWP wages are a pittance, ending them would have subjected these workers to starvation,” Parks added.

He said the situation has sparked broader concerns about public employment programs’ funding.

Parks noted that the Presidential Employment Stimulus has seen dramatic cuts, dropping from R36 billion two years ago to just R3.5 billion currently.

He called for the government to “ramp up”, and refrain from “cutting back  on public employment programmes”.

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Cosatu calls for systematic changes

The trade union federation called for a comprehensive overhaul of public employment programs.

It said all public employment programme should be above the national minimun wage.

They further advocated for addressing issues of wastage, corruption, and profiteering while ensuring programs provide relevant skills and training for both current and future job markets.

Parks, emphasised the critical nature of these programs.

“Public employment programmes should not be reduced to a bean counting exercise by comfortable mandarins in air-conditioned offices. They are an investment in the nation’s youth and destitute. They are key to providing relief and solidarity with the poor.”

ALSO READ: Sassa old age grant recipients can no longer participate in CWP jobs initiative

Future considerations for the unemployed

While the three-month extension provides immediate relief, both the government and Cosatu have acknowledged the need for a more sustainable long-term solution, particularly for the April 2025/26 budget.

The federation argued that with 12 million unemployed citizens, the nation cannot afford to reduce support for public employment initiatives.

Hlabisa and his department have committed to providing regular updates as they work with stakeholders to develop more permanent solutions.

Meanwhile, Cosatu continues to advocate for a hybrid approach that both provides a safety net for those unlikely to find work and creates employment paths for those able to enter the broader job market.

“Where budgets must be reduced; the poor, unemployed and vulnerable must be protected and not sacrificed.”

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