Trade unions play a huge role in the South African economy. They respond dynamically to government fiscal policies. Unions are debating whether their budget proposals will increase economic growth and improve job creation. This essay will analyze whether union alternatives will support or enhance economic growth, as proposed in the national budget. A brief history of trade unions in South Africa will be discussed. It is important to understand the role of unions in the context of the economic world. History of Unions Unions play an important role in the economy. Under article 23 of the Constitution, the legislator declares that every worker has the right to join a trade union. Unions date back to the 1880s. These unions, however, were reserved for white citizens. During the troubling years between 1948 and 1991, unions became more important in the South African economy. Currently, the main unions in South Africa are: COSATU (Congress of South African Trade Unions), FEDUSA (Federation of South African Trade Unions) and NACTU (National Council of Trade Unions). The definition of a union is: “an organization whose members are workers and union leaders united to protect and promote their common interests.” The main objectives of unions are: to negotiate wages and working conditions, to regulate relations between workers and employers, to take collective action to enforce the terms of collective bargaining, and to contribute to the resolution of disputes. Role of trade unions: sustainable growth and development Training and skills development Dual action is needed between trade unions and government to promote rapid economic growth and increased employment. In order to reach...... middle of paper ...... collection exceeds government estimates of R11.4 billion. NEHAWU is, however, disappointed that the national budget is inflexible. NEHAWU is happy that there is now a bigger budget. allocated to programs to combat HIV/AIDS. This will certainly benefit the community. NEHAWU noted that R11.2 billion is earmarked for piloting GPs, but it appears that this funding is moving away from the public sector rather than towards the public sector.Skills developmentRecently, the focus on location work has shifted towards skills development. For example: The UK Commission for Employment and Skills concluded that more than 80% of the UK workforce in 2020 was already employed. Given this change, employers should participate in skills development activities and invest in training their employees..