On 18 February 1995, the National Economic Development and Labour Council (Nedlac) was launched, ushering in a new era of inclusive decision-making and consensus-seeking in the economic arena.

Nedlac's origins lie in the struggle against apartheid, against unilateral decision-making, and in the calls from all sectors of society for decisions to be taken in a more inclusive and transparent manner.

It emerges out of a recognition of the importance of seeking consensus on major economic, social and development policies to ensure their success, and out of an awareness, as President Mandela remarked at its launch, "that our democratic gains will be shallow and persistently threatened if they do not find expression in food and shelter, in well-paying jobs, and rising living standards".

Nedlac draws on international experience in tripartite decision-making, as well as on the experience of its predecessors, the National Economic Forum and the National Manpower Commission. But it also has unique features aimed at meeting the particular needs of the South Africa situation: it includes not only the traditional social partners - government, business and labour - but also organisations which represent community interests in our country. And among its structures is an annual summit which brings together 300 delegates from all walks of life to receive feedback and give input on its activities.

The social partners in Nedlac have key roles to play in developing effective policies to promote urgently needed economic growth, increased participation in economic decision-making, and social equity in South Africa on a sustained basis. The unique form of multilateral decision-making created by Nedlac provides an opportunity for the major stakeholders in South African society to meet these challenges, and to contribute to the journey to reconstruction and development.

Nedlac's objectives

The Nedlac Act, passed in 1994 after being agreed to unanimously by all political parties, says Nedlac shall:

• Strive to promote the goals of economic growth, participation in economic decision-making and social equity.
• Seek to reach consensus and conclude agreements pertaining to social and economic policy.
• Consider all proposed labour legislation relating to labour-market policy before it is introduced in Parliament.
• Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament.
• Encourage and promote the formulation of coordinated policy on social and economic matters.

How does Nedlac function?

Nedlac's founding document says it shall be a "representative and consensus-seeking body where the parties ... will seek to reach agreement through negotiation and discussion based on proper mandates".

Nedlac's constituencies themselves decide on the council's agenda. Issues are first discussed at chamber level and then referred to the Executive Council for final decision-making. The terms of reference of the four chambers and the Nedlac Act make provision for a host of issues to be discussed. But for the negotiating process to produce significant agreements, the chambers prioritise their work.

Nedlac is able to conduct research and make investigations to ensure that it is kept informed and abreast of local and international developments in social and economic policy.

It has mechanisms in place to relate to other bodies relevant to its work, such as the Financial and Fiscal Commission. The South African Reserve Bank is represented, in a non-voting capacity, in the Public Finance and Monetary Policy Chamber. Nedlac seeks constructive relationships with provincial governments and provincial economic and development forums.

Nedlac is committed to ensuring communication and consultation with other related bodies and forums, the media and the public.

The Minister of Labour coordinates the government delegation in Nedlac, and Nedlac is funded from the Department of Labour's budget.

All Nedlac agreements, reports and findings are made public and tabled in Parliament. Nedlac's annual report will also be tabled for discussion in Parliament.

To build the capacity of participants and ensure effective negotiation, the labour and community constituencies can appoint one person each to coordinate their involvement in Nedlac. This is funded by Nedlac.

Nedlac's constituencies

The four Nedlac constituencies - organised labour, government, organised business and the community - are all represented at very senior level. Through the process of interaction during Nedlac's short history, a growing consolidation and capacity to participate in negotiating processes has been evident. All constituencies have developed mechanisms for coordinating their inputs into Nedlac. These include constituency workshops and caucuses and, in the case of the labour and community constituencies, offices have been set up to manage and coordinate their involvement in Nedlac.

Labour in Nedlac is represented by the Congress of South African Trade Unions (Cosatu), the National Council of Trade Unions (Nactu) and the Federation of  Unions in South Africa (Fedusa).

The government delegation includes ministers, deputy ministers, directors-general and senior officials from several ministries and departments, including Labour, Finance, Trade and Industry, and  Public Works.

Business is represented by Business Unity South Africa (BUSA), which was formed out of a merger between Business South Africa and the Black Business Council.

The community constituency comprises representatives of the women, youth, disabled and civic sectors. The decision to incorporate a fourth constituency in Nedlac, and the actual process of constituting this constituency, were both novel developments in the history and experience of cooperative institutions such as Nedlac. The community constituency is represented, along with business, government and labour, in the Development Chamber, and also has representatives on the Management Committee and Executive Council.