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Executive Director:
Herbert Mkhize
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A warm welcome to you and thank you for visiting our
website.
I would like to take this opportunity to brief you on the work
and activities we have undertaken this year and to also reflect on
past work and activities as well. Firstly I must commend the Social
partners who shape the Institution and continuously contribute to
its success, it is indeed what it is because of each and every one
of you, the hard work and dedication that they continue to exude
even when we are all stretched to our limits is commendable. Some
personal successes that have been gained by the Social partners;
the appointment of two (2) members of our Management Committee to
Cabinet. Ebrahim Patel, as the Minister of Economic Development and
Noluthando Mayende-Sibiya as Minister of Women, Youth, Children and
People with Disabilities. Other members, particularly those who
served on our Executive Council, have also been deployed in various
structures of Government and most of them are either at National
level, Parliament or in Local Government. I truly wish each and
every one of you success in your new roles.
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This year for the Institution has been very unique in many
respects and extremely challenging, over and above the work
programme of the Institution, Social partners were called upon to
factor in a range of special issues which were a result of certain
emergency/crisis situations that the country faced. Let me take you
through some of the activities that we have tackled this year.
A large numbers of Draft Bills which were either en-route or
already in Parliament were dealt with. The energy supply crisis
resulting in black-outs never seen before in South Africa kept the
Social partners busy. Constituencies had to deal with a crisis that
called for swift and decisive decisions and actions to be made and
taken for the benefit of our people, the economy and for our Nation
and I am proud to say that we excelled in this daunting task.
Escalating food prices impacting heavily on our people was one
other task that needed swift action and needed to be dialogued.
This task was undertaken with vigour and to a certain extent
resolved even though this challenge will continue to be with us for
a while especially when one takes into account global changes
within our trading partners.
Discussions around the Decent Work Country Programme (DWCP)
which aim to translate the International Labour Organisation (ILO)
values to national realities have gained momentum and I am pleased
to inform you that we are on track. Issues such as Social security,
Trade union and employer organisation and collective bargaining,
the placement of decent work at the centre of economic and social
policies, Enterprise development, strengthening enforcement
mechanisms through improved labour inspection in the public sector
and in bargaining councils, Promotion of ILO standards and values,
Employment Equity, strengthening the employment relationship:
atypical work, contract work, subcontracting, casual work,
part-time work e.t.c. are some components which are at the heart of
the discussions.
The development of the Framework for South Africa's response to
the international economic crisis has to be by far one of the
biggest projects the Institution has had to grapple with within
very tight timeframes. The international economic crisis plunged
the country into a recession which we had not seen and experienced
in 18 years. This crisis demanded the Institution and the
Presidency to respond swiftly, creatively and decisively. The long
nights spent by the drafting team, which was mandated by the
President of the Republic to develop a response package for South
Africa resulted in the Framework for South Africa's response to the
international economic crisis, which contained a number of
interventions, recommendations and concrete proposals on how to
respond to the economic crisis.
I am pleased to notify you that the 5 Task Teams who have been
developing action plans to give effect to the Framework have been
successful, these teams are now winding down deliberations and the
Leadership Team is gearing itself towards presenting a
comprehensive report to the President of the Republic. There have
been difficulties, such as those proposals which carry cost
implications which are often linked to Government budgetary
processes. In these instances the Task Team can only signal an
agreement in principle subject to the outcome of the Government
budgetary processes. Child Support Grant, Extension of the social
relief of distress Fund, Emergency food relief programme are some
of the cases in point. Difficulties associated with the fact that
some interventions require not just tinkering with policy, but
substantial overhaul of existing policies, or prescribed lengthy
preliminary processes that must be undertaken before a decision can
be implemented. (Preferential Procurement; Customs, EPWP,
Insolvency, Retirement funds, SETAs etc.) are some examples. These
difficulties and challenges are met with resolve and are part and
parcel of this kind of situation that we find ourselves in.
While I am on the economic crisis, allow me to detail one of our
success stories in this process which many of our people who have
been laid off will find interesting and beneficial. A scheme called
"The Training layoff scheme"; a training layoff is a temporary
suspension of work of a worker or group of workers that is used for
training purposes. The training layoff depends on an agreement
between an employer and a trade union on behalf of workers, or, in
the absence of a trade union, between an employer and individual
workers, who may otherwise be subject to dismissal for operational
requirements. Participation in a training layoff is voluntary. This
scheme is on the verge of being launched. The key design elements
of the scheme that have been agreed to by the Social partners and
announced by the President of the Republic on 5th August are
as follows:
• A temporary suspension of work used for training;
• Retention of the employment contract;
• Training to be flexible, but linked to the skills needs of the
employer;
• A training allowance paid to the worker;
• Employer carries cost of a basic package of social
benefits.
A training layoff scheme is based on the principle that it will
be available to vulnerable workers and employers who are affected
by the economic recession. The CCMA, Department of Labour, SETA's
and the NSF are the implementing champions of this scheme and such
if you need detailed information visit your nearest office of these
organisations.
On my message in the coming quarter I will report back to you on
further progress achieved. Once again Social dialogue in action is
being rigorously practised and is a resounding success.
On the Institution's Work programme I am proud to report that
the Institution held a record 178 meetings in the 2008/09 financial
year, excluding the Annual Summit, Executive Council, Management
Committee, Decent Work Country Programme Strategic session;
National Electricity Summit; National stakeholder Consultative
session on the WTO, Trade Policy sessions with Deputy Minister
Davies in order to give effect to our Work programme.
The Trade and Industry Chamber remains the busiest of all the
Nedlac Chambers put together. The output of the Chamber accounts
for over 70% of the total work of Nedlac.
The Labour Market Policy Chamber is the second busiest Chamber
accounting for 15% of the total output. In the first 4 years of
Nedlac the Labour Market Chamber was the busiest of all the
Chambers. The decline in volume of work can be attributed to the
fact that most, if not all, Labour Market Policies are in
place.
The Development Chamber and the Public Finance and Monetary
Policy Chamber account for 10% of the total output with the
remaining 5% by Manco Task Teams.
It is worth mentioning that Social dialogue is still relatively
in its infancy in South Africa and requires more time to mature and
be nurtured. The fact that it has not produced some form of 'social
pact' as envisaged in some of the Western European models does not
reduce its relevance. Some of the constituencies have expressly
resolved not to build a photocopy of experiences elsewhere, but to
construct a local model of dialogue, enriched by reflections on the
international experience.
Nedlac's journey has been one of many twists and turns and the
Institution has not achieved all that its Constituencies have
wanted. The setbacks and gaps of the past decade must be seen as a
learning curve. Social dialogue requires time and patience even if
it reaches a deadlock; the answer is not to abandon it. It is all
the more reason to ensure that the Institutional framework for
social dialogue works effectively. I leave you with these thoughts
and reflections and I look forward to interact with you once again
next quarter.