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Cancelling CWP contracts could escalate poverty: Cosatu


2 minutes

The Congress of South African Trade Unions (Cosatu) has warned that the termination of the Community Work Programme (CWP) contracts will lead to an escalation in poverty.

Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa recently announced that contracts of people aged 55 and above would be terminated due to issues including budget cuts.

The termination of contracts of community workers will take effect at the end of this month.

The department said this was due to budget cuts and other related issues.

Cosatu’s Parliamentary Coordinator Matthew Parks says this is deeply concerning.

“Cosatu is deeply concerned by the announcement by the Minister for Cooperative Governance and Traditional Affairs that the persons who are part of the Community Works Programme currently were above the age of 55 will be exited from the programme from the end of this month. 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.”

The CWP is a government initiative that provides temporary employment for people of working age while they search for permanent jobs.

Hlabisa says the decision to end the contracts of CWP participants was not taken lightly.