A.               SOCIAL SERVICES, WELFARE AND LABOUR ISSUES

1.     Re-organisation of Social and Communal Services at Sugar Estates

 

Under conditions of global competition, sugar mills and cane plantations are no longer able to provide goods and services, including social services, such as housing, health care and education, in the way they used to when the industry was operating in relatively remote locations. Progress in transport and communications technology has eliminated much of such remoteness, and more timely and economic forms of providing these services must be found.

 

As part of the restructuring exercise, companies will be forced to restructure their method and level of providing social services. Beneficiaries (workers and neighbouring communities, including retrenched workers) will be first to fill the impact of this. It must also be recognised that, as a social service, these facilities ought to be provided by the state. As such, whilst the companies are scaling down their involvement, towards pulling out, the Government should be facilitated a process of gradual takeover. Financial resource limitations however prevent the Government from undertaking this immediately and on a full scale. As such, the companies must be encouraged to continue providing these social services whilst a model for sustainable management in the future is being developed. This may include a process of developing the requisite local Government structures to take over the running of the industrial towns.

 

Measures

 

·        Study the management and financing of providing housing, health, and education, currently financed by the industry

·        Develop local government structures capable of running social and communal services at the sugar towns

 

2.     Assistance to Retrenched Workers

 

At the same time, the mills and major growers have begun a substantial programme of retrenchment. This is leading to the immediate loss of income for the affected households, as well as to the loss of free access to health care and education. The retrenchment programme is combined with the outsourcing of a series of services, where some of the retrenched workers have the opportunity to become contractors.  

 

Measures:

• Phased easing-out of access to social services for retrenched employees
• Support a loan facility for SMEs, in particular retrenched employees who wish to venture into other income generating activities and even in running the outsourced services of the industry. This will include a programme of retraining and multiskilling;
• Establish effective support services for rural micro- and small-scale enterprises, as farms and mills lay off personnel and “outsource” services
• Support the development of social safety nets