The role of trade unions in job creation: a case study of the Job Creation Trust
Date
2009-07-08T10:56:55Z
Authors
Mwilima, Ntwala
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Abstract
Abstract
This study aimed to investigate the role of trade unions in job creation, using JCT as a case
study. Specifically, the study investigated to what extent JCT had achieved its goal of job
creation. Further, the study explored the type and sustainability of the jobs created and the
implications that the findings have pertaining to the role of trade unions in job creation.
An examination of literature revealed that there are three main ways in which trade unions can
participate in job creation. Firstly, trade unions can get involved in job creation by influencing
macro-economic and social policies at multipartite structures. Secondly, trade unions can
intervene in job creation by facilitating skills development. Finally, trade unions can create jobs
directly as illustrated by the MineWorkers Development Agency and the Job Creation Trust.
Further, literature shows that the active involvement of trade unions in job creation is not a new
phenomenon. Indeed, from as early as the early 1900s, trade unions expanded their role of
collective bargaining to include controlling the supply of labour and facilitating skills
development. The main focus of the study is on the role of trade unions in direct job creation.
After a thorough investigation on the experience of trade unions in direct job creation (using JCT
as a case study), the study concludes that trade unions have a role to play in job creation. The
study argues that trade unions should focus on influencing macro-economic policies and
facilitating skills development as compared to being involved in direct job creation. This is based
on many challenges that not only undermine trade union’s ability to create jobs, but also on the
challenges that face the model of projects funded by the JCT. Accordingly, the study makes the
following recommendations that specifically try to address the challenges identified. Firstly, JCT
can continue funding rural micro and small enterprises. Such a route requires close monitoring of
the projects to mitigate the challenges that such projects fail and, ultimately lead to failure of
project. Secondly, JCT can adopt the role of a labour market intermediary in which it would be
involved in recruiting among the unemployed, facilitating training and placement. Finally, JCT
can adopt the Basic Income Grant (BIG) and work with other stakeholders such as governments,
faith based organisations and NGOs. The study recognised that these recommendations will yield
maximum outcomes if they are implemented in tandem to each other.