A statement after the weekly Cabinet meeting stated firmly that the Department of Labour is the "lead department on labour matters". Last week Gordhan evoked a storm of protest from trade unions for his comment that the labour laws should be relaxed to encourage job creation.
Manuel came out in support of Gordhan saying that "nothing should stand in the way of job creation".
Meanwhile, the International Monetary Fund has warned that without labour reforms, the South African economy will have to grow at between 6% and 7% annually if it wants to reach its goal of creating 5-million jobs.
