The role of trade unions in job creation: a case study of the Job Creation Trust

AbstractThis study aimed to investigate the role of trade unions in job creation, using JCT as a casestudy. Specifically, the study investigated to what extent JCT had achieved its goal of jobcreation. Further, the study explored the type and sustainability of the jobs created and theimplications 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 canparticipate in job creation. Firstly, trade unions can get involved in job creation by influencingmacro-economic and social policies at multipartite structures. Secondly, trade unions canintervene in job creation by facilitating skills development. Finally, trade unions can create jobsdirectly 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 newphenomenon. Indeed, from as early as the early 1900s, trade unions expanded their role ofcollective bargaining to include controlling the supply of labour and facilitating skillsdevelopment. 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 JCTas a case study), the study concludes that trade unions have a role to play in job creation. Thestudy argues that trade unions should focus on influencing macro-economic policies andfacilitating skills development as compared to being involved in direct job creation. This is basedon many challenges that not only undermine trade union’s ability to create jobs, but also on thechallenges that face the model of projects funded by the JCT. Accordingly, the study makes thefollowing recommendations that specifically try to address the challenges identified. Firstly, JCTcan continue funding rural micro and small enterprises. Such a route requires close monitoring ofthe projects to mitigate the challenges that such projects fail and, ultimately lead to failure ofproject. Secondly, JCT can adopt the role of a labour market intermediary in which it would beinvolved in recruiting among the unemployed, facilitating training and placement. Finally, JCTcan 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 yieldmaximum outcomes if they are implemented in tandem to each other.