Declaration of Organised Labour on priorities for 2007-8

Declaration of Organised Labour on priorities for 2007-8.

Preamble

Delegates from the country's leading trade union federations, COSATU, FEDUSA and NACTU met in Durban at a National Labour Summit from 5-6 February 2007.

Following a detailed review of the work of NEDLAC and other institutions of social dialogue, organised labour adopted this Declaration, which will now implemented by all constituent members of the National Labour Caucus.

Vision

Organised labour believes it is imperative that we restructure the economy towards a job-creating growth path. Our vision is of a society with more and better jobs, and decent work for all.

This requires that we focus on jobs, workers rights, widening social equity and increased participation in economic and social decision-making.

As constituent trade union federations, we commit to work together to achieve these goals, and to deepen further our efforts at presenting a unified labour view on the challenges facing our country, and the solutions required to achieve the goals we have set out.

We commit further to use the opportunities of social dialogue, and to upgrade our involvement in a range of statutory institutions.

Key priorities

We recognise that to achieve our goals will require a major transformation of the economy and society, and the development of appropriate macro and micro policies to achieve these. As an immediate step, we have identified a series of key areas of focus that can strengthen our struggle for an improved life for workers and the poor.

We now adopt the following key priorities that must inform all our engagement in forums and committees, and which will become the benchmark by which we evaluate our success.

  • Promote decent work: job creation, job security and employment quality

    Organised labour will promote job creation and job security through a range of measures. This is intended to promote a new growth path. This includes interacting with government on ASGISA in order to ensure that the GDS agreements are effectively implemented, and to realise the goals of decent work, increased investment and increased equity. This includes also promoting the expansion of public works programmes and ensuring that more investment is deployed to economic activities that promote decent and sustainable jobs.

  • Defend the rights of workers, in particular the rights to fair labour practices for all workers, including workers in small businesses, centralised bargaining and fair minimum conditions of work.

    We commit to maintaining and expanding the floor of worker rights set out in the Labour Relations Act, the Basic Conditions of Employment Act, the Employment Equity Act and other labour laws.

    We will defend the right to centralised bargaining and ensure that bargaining councils are strengthened, that they cover workers in small businesses and that the efforts by some in the society and elsewhere to undermine bargaining councils are strongly resisted. This includes efforts to render bargaining council unrepresentative through employer efforts to resign from employer organisations. We will not hesitate as labour federations to unite our members in strike action in defence of our rights.

    We are aware of attempts to undermine worker rights under the guise of reducing the 'regulatory burden' on business, and will not accept the use of Regulatory Impact Assessments to reopen the discussion on worker rights.

    We believe all workers, including those at small businesses are entitled to the constitutional protection of fair labour practices. We therefore reject the attempt to exclude workers in small businesses from minimum wages, bargaining councils or the protection of the law.

  • Combat the increased casualisation and informalisation of labour, and ensure all workers have rights.

    We express our strong opposition at attempts by some businesses to deny workers rights through manipulating the employment contract. This can take the form of casualisation, contract work, labour broking and informalisation.

    The study conducted by the Department of Labour on this issue should be used to improve the conditions of workers who are currently denied rights to employment security and standards.

    Amendments to the LRA aimed at protecting vulnerable workers, particularly those regarding independent contractors, should be effectively used. 

    Unions must improve our strategies to organise and represent this layer of workers, and give them voice and power in our organisation.

    We will work in the Task Team set up by NEDLAC to achieve the following goals: to ensure that the regulatory framework is strengthened in order to ensure that contracts and casualisation are not used to deprive workers of their rights to join unions and be covered by labour law, collective bargaining and collective agreements and to eliminate the phenomenon of permanent casuals.

  • Support the buy local campaign, and focus it on saving local jobs

    We commit to strengthen the Proudly South African campaign, and to have all sectors develop customised promotional activities.

    We will campaign that all retailers selling consumer goods such as clothing and food, increase their level of local purchasing substantially, with a goal of 80% to 90% local procurement, and that retailers make resources available to market local products to consumers.

    We will use our influence in all bodies to secure support for local procurement, by the public and private sector, and to use our representivity in areas where investment decisions are made, to invest in companies that support the buy local campaign.

    We support the use of labels of origin to ensure South African-made products are clearly known. We will campaign for improvements in customs at ports of entry to eliminate smuggling and illegal imports.

    As labour federations, we will take the lead by introducing proper systems internally to ensure we buy local, and we commit to a Code to regulate our purchases of particular goods and services.
    We have taken note of the statements by asset management companies calling for increased imports that undermine the proudly South African campaign and as custodians of member interests, we will ensure that our members' contributions are not used to undermine their jobs.

    We will campaign that large companies become premium members of the Proudly SA campaign and will fight efforts of certain companies, including major life assurers, to undermine the  campaign.

  • Promote increased investment, in areas that meet national social objectives.

    The 5% target for the use of investable funds for socially responsible investment, concluded at the GDS, must be implemented. We believe the basic objectives of the targeted investment should be to promoting jobs (through investments in economic activities or sectors with an above average labour absorbing effect), the buy local campaign, decent work practices by companies, cooperatives and building of basic social infrastructure. Clear guidelines will be developed in respect of each of these objectives.

    All trade unions will communicate these goals to trustees.

    Should the current agreement not be implemented as a matter of urgency, the labour movement will formally propose the introduction of a prescribed asset requirement on businesses.

  • Promote industrial and trade policy measures that save and create quality jobs.

    We believe that a strong, active industrial policy should be developed, with clear sector-level elements. Industrial policy should promote quality jobs and create capacity locally. These are key elements of a developmental state that responds to the needs of citizens. Trade policy should be supportive of such a growth-oriented industrial strategy. To this end, organised labour will engage with current and proposed government policy to achieve these ends.

    We recall our commitment to monitor negotiations at the WTO in Geneva, and to ensure and campaign to retain the gains made by developing countries, particularly relating to keeping the policy space for countries to use appropriate trade measures to save jobs, supply basic services and build an industrial and service capacity.

    In this context, we note with disappointment the Doha-Round of negotiations at the World Trade Organisation (WTO) and express our deep concern at the agenda of developed countries to deprive developing countries of the opportunity to grow their economies in a balanced manner. In particular, we reject attempts to use the current Round of trade talks to prise open our economies through the so-called Non-Agricultural Market Access (NAMA) proposals as well as the proposals for trade in services.

    We call on governments of the south to ensure that any agreement on NAMA is based on defending the right of developing countries to use trade policy measures to build and strengthen their manufacturing sectors.

    We will ask for a comprehensive rethink on proposed bilateral trade policy initiatives, to ensure that we do not destroy jobs locally. We reject attempts to do away with tariff protection on a blanket basis and seek instead to have a case-by-case approach.

    We will request that trade negotiations particularly with the USA, China and India be carefully tested against the criteria of their impact on local industry, and to stop moves towards bilateral negotiations that damage employment, particularly with China and India, and to reject provisions requested by the USA to include issues such as procurement, competition policy and intellectual property rights, in bilateral agreements.

    We support government's  action to reverse the damage caused by the flood of largely Chinese imports in the economy, through using safeguard measures wherever possible.

    We will campaign for an active industrial policy that promotes labour-absorbing growth. Government set-asides to Black Economic Empowerment companies, SMMEs and Women's Economic Empowerment entities, as well as all government (particularly dti) incentives (as well as development finance incentives) should be linked to local procurement, respect for labour rights and tax compliance.

     

  • Build a strong cooperative movement, and expand the number and success of cooperatives

    We will seek support from the state, and Retirement Funds, to promote the development of producer cooperatives. Equally, the procurement policies of businesses should promote cooperatives. Labour will table proposals in this regard at sector summit level.

    We will work with the Coop Movement to build consumer and finance coops that are geared to social goals.

  • Make the workplace training system work for members: increase the amount and quality of training, and strengthen SETAS

    We will develop annual targets, progressively increasing, to ensure that significant numbers of current workers, and the unemployed, go through structured learnerships that promote advanced skill development. This needs to vastly exceed the number of people previously placed on apprenticeships.

    We will develop common performance indicators across SETAs, and ask for some SETAs to merge in order to develop more effective delivery capacity.

    We commit to strengthen our representation at SETAs in order to ensure that they are effective, that proper corporate governance systems are in place and that training is expanded. To this end, we further commit to launch a training programme for labour representatives during 2007.

    We call for better integration between workplace and academic skills, and will work to coordinate the standard-setting institutions and government departments (the NSA, SAQA and CHE, as well as the Departments of Education and Labour) to ensure an effective delivery.

    We call for skills development and skill transfers for learners and will campaign that investment initiatives promote this.

  • Campaign to have an exchange rate that is geared to job creation.

    We believe the Rand should be valued at a level that will promote employment in sectors such as manufacturing, mining, and tourism.

    We believe that the policies of the Reserve Bank has contributed to the over-valued exchange rate.

    We will campaign to have an exchange rate that is more compatible with the goal of creating and saving jobs in South Africa.

    We will engage the SARB and government on interest rates, short-term speculative and portfolio flows, the mandate of the Reserve Bank, and policy tools to ensure a more appropriately valued Rand.

    To this end, we recall the calls by the labour movement for an exchange rate valued in a R9-R10 to the US $ band and now commit to campaign for a more competitive exchange rate.

  • Reform the insolvency and competition laws to prioritise jobs

    We will lead discussions to change the focus of insolvency legislation in order to place greatest priority on saving companies going through difficulty, and shift power away from trade and finance creditors, towards workers.

    We will call for a review of competition policy and legislation to ensure that it takes on a greater mandate to promote decent work, that is, to save jobs and enhance the quality of jobs.

  • Achieve broad-based black economic empowerment, with benefits to workers and communities.

    We have serious reservations with the shape of many current black economic empowerment initiatives. They seem directed simply at the enrichment of a few individuals, and often is simply a front for the status quo.

    We will campaign to ensure that empowerment is broad-based, and reaches communities and workers in large numbers.

    We will evaluate the operation of the BEE Codes and Charters against the principles that they should promote broad-based empowerment, employment creation, local procurement, worker rights (including training, a living wage, fairness at the workplace and career-development for all workers)

    To the extent that the Codes and Charters promote these goals, we will actively campaign for adherence thereto and where there are deficiencies in their content, we will table proposals to amend such Codes and Charters.

  • Engage with the courts and the emerging labour jurisprudence to achieve the objectives of fair labour practices and expansion of worker rights

    We have taken note of a number of recent court judgements, at both the Labour Appeal Court (LAC) level, as well as by the Supreme Court of Appeal (SCA), which have reinterpreted the law in a manner that deprive workers of rights to fair labour practices and to industrial justice.

    In particular, we take note of the Rustenburg Platinum Mines vs CCMA judgement of the SCA which asserts wide and unacceptable managerial prerogative in dismissal and imports the tests of Promotion of Administrative Justice Act to CCMA hearings, as well as the Semenya & others v CCMA judgement of the Labour Appeal Court which challenges the right to a hearing prior to a decision to dismiss. As organised labour, we are united in our opposition to these judgements and will seek to have more balanced jurisprudence in these areas of law.

    We will more actively monitor the development of our jurisprudence to ensure that gains made in legislation are not reversed through narrow or conservative judgements.

    We will defend the values of the Constitution, in particular the provisions on workers rights.

    We believe strongly that a specialist labour court is vital to ensure an appropriate specialist jurisprudence develops, shaped by equity considerations. To this end, we reject reforms of the judiciary that destroys the specialist functions and character of labour courts. We support the continuation of the system that provides Nedlac with meaningful say over the appointment of judges to hear labour matters.

    We will take mass action if the judicial system is changed that destroys the specialist character of labour jurisprudence, or that weakens the role of Nedlac in the appointment of judges to hear labour matters. We will further ensure that we retain the right of trade unionists to represent members directly in court.

    We remain concerned at lengthy delays in scheduling of hearings and the issuing of awards by the courts. Justice delayed for workers who are dismissed or retrenched unfairly, is often justice denied. We therefore will request through Nedlac that an evaluation be done of the problem together with ways in which we could work cooperatively with the Department of Justice to improve the speed and efficiency of the courts.

  • Develop a national measure of poverty.

    We call for finalisation of a national measure of poverty that can serve as a benchmark to determine the success of all our efforts to fight poverty. A poverty measure should indicate the earnings or income level at which families are able to meet their basic needs and achieve a standard of living consistent with the requirements of human dignity.

    We will work with other constituencies of Nedlac to develop the elements of such a measure as a matter of urgency.

  • Campaign for a comprehensive national health system that ensures universal provision of quality care

    We will work with community organisations, and government, to develop a national health system that provides universal rights to quality health-care.

    We will table proposals for a Health Charter at Nedlac level to begin to build such a national health system. These must be founded on the principles of promoting quality public health-care for all South Africans with provisions for access, equity, quality, procurement policies and human resource development to achieve this.

    We take note and welcome the position of government articulated on 1 Decemeber 2006 on a comprehensive HIV/Aids strategy. We will campaign for full treatment for HIV positive persons, and a comprehensive education campaign to prevent the spread of HIV-Aids. To this end, we commit as trade unions to play our role as part of a partnership through active worklplace programmes.

  • Campaign for a social security system that responds to the crisis of poverty.

    We believe that a universal social security system is one vital element of a comprehensive anti-poverty strategy. Together with the other elements, identified elsewhere in this document, they can provide a basic income to all South Africans and ensure that no person is left in absolute poverty.

    We will now engage in NEDLAC with a view to progressing the policy discussion forward and achieving consensus on the means to improve the social security system.

    Ensure control of retirement fund investment decisions are placed with trustees and members and that the Retirement Policy Review achieves our goals

  • We will work to ensure that trustees truly control decisions of pension and provident funds.

    We will campaign to strengthen the employee trustees, with the goal of 100% employee trusteeship of all Funds in future.

    We will seek to reduce the power of asset managers and Fund consultants and administrators, who currently see trustees as rubber stamps. As a first step, we will undertake an audit of existing service providers as an input to a wider review of their role.

    We will develop training programmes for trustees, and develop a common platform that trustees can use to mandate benefit consultants and asset managers on investment decisions. To this end, we will require Funds to invest locally, to invest in companies that create jobs, and to invest in manufacturers and retailers who support the buy local campaign.

    As part of strengthening employee trustees, we will distribute widely the Declaration adopted at the Retirement Trustees Conference in 2004 and track the efforts of unions to implement the Declaration.
     
    We plan to host a Conference of Employee Trustees before the end of the year to monitor implementation of the Declaration and to address institutional and Fund governance issues.

    We will enter into negotiations at Nedlac on government's draft retirement fund reform document and ensure we achieve the goal of union-linked trustees gaining more authority over investment decisions, and implement the terms of the Worker Trustees Declaration adopted in 2004.

  • Public Sector Reform

    Organised labour has taken note of the initiatives by the state to commence restructuring of the public sector through the Public Service Amendment Bill and the proposed Single Public Sector Bill.
    We will convene discussions within the trade union movement to fully analyse the proposed impact, to measure it against the goals of service delivery and fair labour standards and  develop a common position.

    We reject attempts to reform the functions of the state that are not based on wide discussion and negotiation, particularly that affects both the institutional capacity of the state to deliver basic services as well as the industrial relations framework.

    We believe it is important to ensure centralised bargaining and avoid a fragmentation of the public service as well as the introduction of privatisation in the guise of restructuring.

    We call on government to meet with the leadership of the trade union movement to discuss the proposed changes and to agree the principles that should underpin restructuring of public institutions prior to the introduction of legislation.

  • Towards a peoples 2010 World Cup

    Organised labour expresses our pride in South Africa's hosting of the 2010 World Cup.

    We believe the 2010 World Cup should have a developmental focus.

    For the 2010 World Cup, organised labour proposes a 2010 Framework Agreement to be concluded at Nedlac between all constituencies, which should reflect the priorities set out earlier, and in particular should contain provisions dealing with

    • Local procurement in line with Proudly SA
    • Employment
    • Infrastructure
    • Labour standards
    • BEE guidelines
    • Promotion of cooperatives
    • Access to matches

      These principles have now been set out in a Draft Agreement annexed hereto, which organised labour tables for negotiations at NEDLAC.

    • Addressing the challenge of crime

      As representatives of workers and the poor, we note that high crime levels affect our communities very negatively. The causes of crime are manifold: socio-economic, the societal culture, problems in  policing and the criminal justice systems. An effective response need to go beyond the point-scoring and rhetorical approach that has been taken at times.

      We consider that NEDLAC may have a vital role to play in developing a partnership that addresses the different dimensions of the challenge and to this end, we will now debate within our structures the best way to respond to the challenge of crime.

       

    • Take up the key demands of labour

      We commit to continue to campaign and negotiate on the key demands made by workers for many years, including to secure a fiscal policy that strongly promotes social equity, redistribution of wealth and expansion of the economy, social policy that ensures houses, income, adequate education and access to quality public healthcare and labour market policy that promotes the rights of workers.

      We will take forward the demands on labour market issues, including on unemployment benefits, compensation on occupational injuries and other proposals made at Nedlac.

    • Build Nedlac and other institutions of engagement and social dialogue

      We will work to strengthen our involvement in, and the power and mandates of, Nedlac as the primary social dialogue institution, and support the work of and other institutions of engagement (such as the CCMA, ECC and others) We will resist the drift to bilateralism and the multiplication of structures and consultations, all of which can seriously undermine Nedlac. We will work within the Presidential Working Group and the Millennium Labour Council in a manner that will enhance Nedlac's role as the premier agreement-making body. We will interact constructively with the review of Nedlac's performance and use it to advance Nedlac's role in the society.

      We will engage with global social dialogue institutions, and also build social dialogue on the African continent. We will seek to house the Ecosocc South African Chapter within Nedlac's ambit, and integrate its work within Nedlac.

      Forums and methods to achieve these

      We commit to use our resources and power to make measurable progress on all the priority areas, and to ensure that we build a strong movement, united in purpose.

      This Declaration will be given to all representatives of organised labour on different forums, to use as a guideline for engagement, and mandate development.

      We will use this as the guide in Nedlac, at sector level, in developing representations for parliamentary committees, and in the work on the 2010 World Cup.

      Improving work in NEDLAC

      We reaffirm NEDLAC as the primary institution of social dialogue and will defend it from attempts to reduce its role.

      We are aware that NEDLAC has faced many challenges. Outside of the Department of Labour, many government department do not seem to understand the role of NEDLAC and routinely avoid tabling issues for negotiation.  This is clearly undermines the NEDLAC Act.

      We will build the internal NEDLAC institutional capacity, including to increase highly skilled personnel.

      We recognise that for NEDLAC to continue playing its strategic role requires consistent participation by all constituencies and building the institutional capacity of NEDLAC.

      We commit to the following:

      • To improve our participation and coordination.  This will include ensuring seniority of our representatives, proper preparation and mandates for meetings and better coordination between chamber delegates, the overall convenor and delegates to EXCO and MANCO.
      • Chambers will be asked to review its programme; assess gaps in the programme; review coordination; identify strategic issues that should be placed on the programme. On that basis develop a strategic plan for the coming 12 months.
      • Labour will develop a panel of skilled negotiators that can be deployed on taskteams to develop agreements.
      • We will host at least one major policy and review conference a year, at which we can evaluate the impact of our work, develop proposals fore tabling at Nedlac and ensure information-sharing between the Federations will be improved. We will produce reviews of Nedlac from a labour perspective for consideration at such conferences.
      • We will work much closer with the community constituency as we share a constituency.

      Improving our representation function

      We are currently represented either by union delegates, or experts, in a wide range of institutions, or have persons from or connected to the labour movement, nominated to serve on statutory bodies, and these include

      • Nedlac and all its structures and task teams
      • the CCMA Governing Board
      • Employment Conditions Commission
      • The National Productivity Institute
      • SETAS
      • the National Skills Authority
      • ITAC
      • the Unemployment Insurance Board
      • COIDA
      • Commission for Employment Equity
      • the IDC
      • Proudly SA
      • the MLC
      • Presidential Working Group
      • the Labour Court Rules Board and
      • the Councils of various universities.

        In addition, labour participates in the governance structures of the ILO and sends delegations to the WTO.

        We commit to improving representation in all bodies where organised labour has a presence.

        As an immediate step, we will develop an audit of all structures on which labour delegates serve, either in a representative or expert capacity. The National Labour Office will further develop an oversight role, tracking meetings, attendance and outcomes, for consideration by the constituent federations.

        All labour delegates will be required to complete a standard report on all meetings held.

        Labour delegates to Nedlac meetings will be requested to hold regular caucuses, to develop common positions.

        Implementation Plan

        We will develop a detailed plan of meetings and activities to take the above commitments forward.

      Conclusion

      We commit to full implementation of the agreements reached at the Growth and Development Summit, and to ensure that all constituencies do likewise.

      We now take forward this set of commitments as the guide to our work in the period ahead.


      Format of standard report

      Nature of meeting: ____________________________  Date: ___________

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      Absent from labour________________________________________________

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      Agenda ________________________________________________
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      Main decisions taken________________________________________________

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      Matters requiring mandates _________________________________________

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      Key documents ________________________________________________
      Tabled
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      Date of next meeting___________   Report author ______________
      Ph __________________  email___________________________

 

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