D  I  A  L  O  G  U  E

April 1998 Vol 2, No. 1

An occasional publication covering reports and activities discussed by the Nedlac Executive Council  

Mine health and safety amendment gets green light

The Nedlac Executive Council in August agreed to support an amendment to the Mine Health and Safety Act.

After the Act's promulgation in June 1996, business and labour in the mining industry appointed a technical committee to explore ways of ensuring the effective enforcement of the Act without resorting to the criminal procedures against employers that were provided for in subsections 86(2) and (3) of the Act.

The amendment provides for such criminal penalties to be replaced by administrative penalties, in the form of fines, for certain breaches of the Act by employers. It also provides for the further operation of tripartite institutions, and for the participation of any health-and-safety representative responsible for a workplace in any inquiry into his or her workplace.

Nedlac partners condemn customs and Vat fraud

A crackdown on customs fraudsters has been called for by the social partners in Nedlac.

Customs fraud results in an estimated R3 billion per annum loss of tax revenue to the fiscus and undermines local industry and, hence, South Africa's industrial-policy and job-creation objectives. The consequences of fraud are being strongly felt in various sectors-including clothing and textiles, footwear and electronics-where thousands of jobs have been lost.

The Nedlac Management Committee agreed on a joint statement that reflects a firm commitment and call to start work against a culture of criminal and illegal conduct, and that strengthens the efforts of the authorities to eliminate this problem.

The statement reads as follows:

"The Nedlac partners-organised business, organised labour, community and government-have expressed concern at the high incidence of customs and value-added tax (Vat) fraud in South Africa. Such fraud has incd the under-valuation of imported goods, forged documentation, the abuse of the import-permit system, the removal of imported goods in transit and false claims on Vat refunds. The incidence of fraudulent activity even appears to be spreading to established South African businesses.

"Customs fraud results in an estimated R3 billion per annum loss of tax revenue to the fiscus and undermines local industry and, hence, South Africa's industrial-policy and job-creation objectives. The consequences of fraud are already being felt in some sectors-for example, clothing and textiles, footwear and electronics-where thousands of jobs have been lost.

"Customs fraud is a serious criminal offence and the Nedlac partners support action by the authorities to impose tougher penalties on guilty parties, to improve its investigative capabilities to identify the criminals and to take measures to hasten the processing of cases through the criminal-justice system.

"The social partners welcome the restructuring of the Department of Customs and Excise and its incorporation into the South African Revenue Services (SARS). They note the progress made by the SARS towards results-orientated management. The seriousness of continued customs fraud warrants urgent action on measures to enhance the effectiveness of the SARS.

"Specifically, the Nedlac partners would like to encourage:

• "Coordination between the SARS, the South African Police Services, the Department of Justice and the Department of Home Affairs in investigating and prosecuting criminals.
• "Upgrading information-technology systems to improve data collection and the ability to monitor and cross-reference customs activity.
• "Coordination between the SARS and the Department of Trade and Industry on a cooperation agreement with Southern African Development Community and Southern African Customs Union countries to investigate cross-border trade irregularities.
• "The implementation of the 13-point plan for the restructuring of customs and excise functions agreed by the social partners in the National Economic Forum.
• "Ongoing criminal prosecution of offenders, including, where appropriate, the executives of guilty companies, with stiffer penalties, including imprisonment."

RESOURCES AVAILABLE FROM NEDLAC

Overview of the formal training system in South Africa and Financing of training: the international experience, published by Nedlac.

The skills development bill, 1997 was published on September 2 in the Government Gazette. The Gazette number is 18244. The bill can be obtained from the Government Printer, telephone (012) 323-9731, extensions 263, 269 or 273.

Report on phase one of the Workplace Challenge, published by Nedlac.

Nedlac report to the annual summit (report on Nedlac activities for the period 1 April 1996-31 March 1997, and report on social and economic developments in South Africa).

Nedlac News Update, a regular quick look at the issues under discussion in Nedlac.

All publications can be ordered from   mbuso@nedlac.org.za.

AN OCCASIONAL PUBLICATION COVERING REPORTS AND ACTIVITIES DISCUSSED BY THE NEDLAC EXECUTIVE COUNCIL

APRIL 1998 Vol. 2, No. 1

Volume 2 Issue 1 April 1998

Preparations for the jobs summit

"Jobs, jobs, jobs is the clarion call that should guide us" - President Mandela, in his opening address to parliament, 6 February 1998.

RESOURCES AVAILABLE FROM NEDLAC

Code of good Practice on Retrenchments

Nedlac has issued a code of good practice on dismissals based on operational requirements, that is retrenchments and redundancies. The code will be added to Schedule 8 of the Labour Relations Act.

Code of Good Practice on Picketing

A code of good practice on picketing has been issued by Nedlac in terms of section 203 of the Labour Relations Act. The code, which will be published in the Government Gazette, provides practical guidance to workers, trade unions and employers as well to other parties who may be involved or effected by a picket, including the CCMA, the Labour Court and members of the public.

Memorandum of Understanding on Service Tariffs

This memorandum reflects an understanding between the Nedlac constituencies on the principles to be incorporated into a service-tariff policy. The memorandum of understanding sets a broad framework upon which local authorities are able to determine prices for basic services consumed, such as water, electricity, refuse removal and sewerage.

Nedlac Report on the National Water Bill

This agreement reflects broad consensus by the Nedlac constituencies on the political intentions of the envisaged legislation in respect of management, protection, conservation and regulation of the national water resources.

Benchmarking South Africa for Labour Intensive Development, Draft Report, January 1998, prepared by SRI International.

* Nedlac News Update, a regular quick look at the issues under discussion in Nedlac.

All publications can be ordered from Mbuso Ngcongo, telephone (011) 482-2551, fax (011) 482-4650 or e-mail mbuso@nedlac.org.za.

Visit to Nedlac by Danish Prime Minister

Jayendra Naidoo, Nedlac's Executive Director with Mr Poul Nyrup Rasmussen, the prime minister of Denmark and his wife, Mrs Lone Dybkaer at a meeting hosted by Nedlac recently.

The meeting was attended by senior constituency representatives, provided for an open exchange of views and ideas on South Africa's transformation. This was followed by specific discussions on macroeconomic policy, labour market reform, and the future role of trade unions.

Four big ones coming up!

Four crucial issues are about to be finalised in Nedlac and will be put to the Management Committee meeting on April 24 for consideration.

The Skills Development Bill: deals with a skills development strategy for South Africa. It will change the entire skills training system in South Africa, in particular the financing and governance of training. An agreement on the Bill is close to being finalised.

The Social Plan: an agreement on the social plan is soon to be finalised. It deals with a basket of different measures to support workers who have been retrenched. It is looking at measures, for example, training, counseling and small business development programmes, which will cushion the impact of mass retrenchments on workers and their communities.

Employment Equity: deals with unfair discrimination and affirmative action in the workplace. It seeks to rectify racial and gender imbalances that exist in the workplace. The Bill was published in December 1997 and tabled in the Labour Market Chamber of Nedlac for negotiations. The negotiating committee first met on 25 February 1998. There is a high degree of optimism that there will be agreement on all major points in a record short space of time.

Competition Policy: The government tabled its Proposed Guidelines for Competition Policy in Nedlac in November 1997. The guidelines attempt to combat unfair business behavior, for example restrictive practices, which is not in the public interest. Negotiations commenced in March with parties tabling their responses to government's policy document. A task team is negotiating an agreement of principles, which will inform the drafting of the bill. These principles inc objectives for competition policy and competition law, anti-competitive conduct and merger control.

National Water Bill

South Africa is well on the way to having a legislative framework which will ensure that the nation's water is held in public trust by the national government for the benefit of all members of society.

Since January 1998 Nedlac's Development Chamber has been debating a draft National Water Bill. Consensus has been reached on almost all the issues. Key points of agreement inc:

• Ownership of the land does not confer the owner automatic and exclusive use of the water.
• There must be equitable access on an affordable basis to the nations water resources.
• Regulation of water usage by making provision for general authorisations and the issue of licenses.
• That a responsible authority should have powers to attach conditions to every general authorisation or license.
• The principle of a Reserve aimed at ensuring that enough water is set aside to meet basic human needs and to sustain the environment.
• The need for a National Water Resources Strategy.
• The 'Polluter Pays' principle.
• That there should be provision for water charges and that end-users should pay for such a service.

But one significant area of disagreement remains. The constituencies remain divided on the issue of whether those who hold rights to use water should be allowed to sell them. The government supports constrained or limited trading in Water Use Rights. Business supports the position of government but believes that the bill is not clear on this point and wants the bill changed to make this intention explicit. Lorraine Lotter commented 'Water is a national resource and business does not believe there should be an open market in, or excessive profits made from, water rights. But it does support some trading in water rights and believes that government must put appropriate rules in place' Labour has resisted this idea arguing that it opens a back door to privatisation. Kenneth Creamer comments 'We believe that the rules regulating water use should be determined by public interest.'

Despite this point of disagreement all the constituencies expressed satisfaction at the substantial progress made in the negotiations. For example Creamer believes that the ground work has been laid for the 'national management of water resources in the interests of all.'

Debating Social Dialogue

At a recent seminar in Gauteng delegates from 14 countries were treated to a lively display of South African social dialogue.

The occasion was the outcome of informal discussions during the visit of the Director General of the International Labour Organisation to South Africa in 1997. It was proposed that a seminar be held on Nedlac and the experience of social dialogue in the Southern African region. The idea was taken up by Nedlac and a jointly organised and funded seminar was held from the 2-4 December 1997.

Fourteen countries from the region participated each sending representatives from business, labour and government. The purpose of the seminar was to:

• examine the role of social dialogue in development
• analyse the existing tripartite consultative mechanisms in the participating countries
• explore what lessons Nedlac's experience offered to other countries in the subcontinent.

The panel discussion on the Nedlac experience produced very frank and stimulating debate. Sipho Pityana, Director General of the Department of Labour posed a series of challenging questions. Was it appropriate that 'a popularly elected government should negotiate with key sectors and institutions in society?' Should there not be a larger place for 'government's prerogative to govern?' 'Is the concept of social dialogue a commitment to government by collective bargaining?'

Dave Lewis argued that, 'All societies that are performing reasonably well economically, do so because their stability and their performance is routed in a well-functioning system of social dialogue.'

At the end of the seminar delegates were aware of how vigorous social dialogue South African style could be. Jayendra Naidoo, Nedlac Executive Director commented, 'Effective forms of social dialogue must have honest and open debate. We were not pretending to have the answers but sought to share our experiences and learn from others as well. I believe delegates from other countries were impressed we debated so frankly.'

The debate also extended beyond the experience of Nedlac and ranged more widely across the region. In these discussions it became apparent that whatever the weaknesses of the Nedlac model, tripartite structures elsewhere in the region had very limited capacity and clout. A general problem was that these institutions were either controlled or ignored by government. One of the conclusions reached at the seminar was that urgent steps should be taken to strengthen these institutions.

The seminar concluded that the model for an effective institution should:

• Incorporate a balance between economic imperatives and social needs.

• Be representative and incorporate civil society, the informal sector and the rural population.
• Existing tripartite bodies be broadened or complemented to influence decisions on economic, labour and employment matters.
• Each of the parties to such dialogue must:
• be independent
• be on an equal footing
• be representative
• have the mandate and the authority to make commitments on behalf of its constituents
• have the technical competence to participate effectively.
• Capacity-building of the actors is key to the effectiveness of social dialogue.

Government has a major role to play in providing adequate support to the mechanism for social dialogue.

Nedlac was seen as a source of inspiration. However, it was also recognised that each country has to develop mechanisms for social dialogue which are adapted to its own history, tradition, culture and circumstances.

Public Finance and Monetary Policy Chamber - A new role

Having been bypassed by GEAR, its role for some time now has been unclear. At the policy session on 19 March, the role of the chamber was vigorously debated and discussed and a process for a way forward put in place.

Jayendra Naidoo, Nedlac's Executive Director explains the dilemma: 'South African's are debating fiscal and monetary policy issues to a far greater extent than in most other places. However, the structure that has been created for that debate in Nedlac, is not having a meaningful impact.'

A number of key points about the chamber's role emerged. Firstly, there was broad consensus that there are important monetary issues for government, labour and business to talk about, for example taxation of retirement funds or the medium term expenditure framework. But key questions remain. What should these discussions seek to achieve? What obligations are being given to the chamber? What programme or targets should discussions be tied to?

There was broad agreement that debate should not mean co-determination of macroeconomic policy. Government must retain final fiscal responsibility. However, government's decisions could be greatly enriched by constituency views on fiscal and monetary issues.

Concern was also expressed that if senior people invest time and energy, it must be to make an impact on the real world. Information sharing alone, was potentially a waste of time. Middle ground is needed. The meeting put in place a process to find out what the 'middle ground' should be. Different parties will present submissions on the role of the chamber at the 16 April chamber meeting.

New Codes Agreed

PICKETING CODE

Chris Bonner, Director of Ditsela, and former official of CWIU, remembers how pickets were carried out in the past:

'Some unions had agreements with employers on procedures for picketing. But generally they were done on a rougher basis. Often things would get nasty. There was always the threat of security laws, with pickets being disturbed by the police and picketers sometimes being arrested.'

But things should be different in the future. There will be a place for properly organized picketing. In February the social partners at Nedlac reached agreement on a code of good practice on picketing.

The purpose of the Code is to provide guidelines to assist employers, employees, the CCMA, Labour Courts and the SAPS in interpreting and applying the LRA.

Liesel Kostlich, Co-ordinator of Nedlac's Labour Market Chamber explains: 'The Code gives additional guidelines on how to interpret the LRA. It does not apply to all pickets and demonstrations. It only applies to pickets in support of protected strikes or in opposition to any lock-outs in terms of section 69 of the LRA.'

The Code tries to ensure proper communication between employers and employees during and before a picket.

Key aspects of the Code inc the following:

A registered trade union must authorize a picket.

Picketing Rules

The parties before the picket must negotiate picketing rules. Factors to consider inc number of picketers, location, time and duration of the picket, conduct during the picket.

Pickets on the employer's premises require the permission of the employer, which may not be unreasonably withheld.

Conduct in the picket

Trade unions must appoint a convenor and marshals to oversee and monitor a picket.

The employer party must also appoint a representative

Picketers may carry placards, chant slogans and sing and dance.

Picketers may not physically prevent entry of persons to and from the workplace.

Role of the police

The police have a general duty to uphold the law and may take reasonable measures to keep the peace.

The role of the police

A key area for debate during negotiations of the Code was the role of the police. The Code makes it clear that, 'it is not the function of the police to take any view of the merits, in particular of the disputes, giving rise to a strike or a lock-out.' The police have no responsibility for enforcing the Labour Relations Act.

The Picketing Code provides a way forward to prevent past problems on the picket line recurring. Properly implemented it should lead to a better understanding of the roles and responsibilities of parties before and during a picket.

Retrenchment Code

During the LRA negotiations in 1995 it was agreed that Nedlac should issue a code of good practice on dismissals based on operational requirements, commonly referred to as retrenchment, as a schedule to the LRA.

If there is no alternative to retrenchment there needs to be a fair procedure to deal with what is a very traumatic experience.

A Code on Retrenchment was finalised in Nedlac in February this year.

Les Kettledas, a government representative at Nedlac, believes this code is very important: 'The Code amplifies what's in the law. It gives guidelines on how best to conduct the process of dismissals. Previously different agreements were reached regarding retrenchments at enterprise and collective bargaining levels.'

Reasons for dismissals based on operational requirements are defined in the Act. The code clarifies these definitions. 'As a general rule, economic reasons are those that relate to the financial management of the enterprise. Technological reasons refer to the introduction of new technology which affects work relationships either by making existing jobs redundant or by requiring employees to adapt to the new technology. Structural reasons relate to the redundancy of posts consequent to a restructuring of the employer's enterprise.'

Key aspects of the code also inc the following:

Employer's obligations

Employers must explore alternatives to retrenchments.

Employees to be dismissed must be treated fairly.

There must be consultation with employees in an attempt to reach consensus.

Dismissed employees must be given preference for rehiring.

There must be proper consultation around matters including, measures to avoid dismissals, the time of dismissals, ways to minimize the negative effect of dismissals, methods of selecting employees to be dismissed and the severance pay for dismissed employees.

Fair selection criteria inc length of service, skills, qualifications and the LIFO (last in first out) principle.

Severance pay provided for in the Act is a statutory minimum and parties can negotiate improvements.

If an employee 'unreasonably' refuses alternative employment his right to severance pay is forfeited.

Both the Picketing and Retrenchment Codes will be published in the Government Gazette. Copies are also available from Nedlac.

Bokkie Botha, a business representative at Nedlac summarizes the value of these codes. 'Many employers and employees have good relations. But the value of these codes is that you spread best practice across a wider spectrum.'

Section 77 -

Three notices of protest action served

According to the Labour Relations Act, a registered trade union or trade union federation may take protest action provided they have followed a certain procedure.

The purpose of the procedure is to attempt to resolve the issue. The union is required to serve notice on Nedlac stating the reason for and the nature of the intended protest action. Nedlac then considers the issue in order to resolve the matter. If the matter is not resolved, the union may serve a further notice on Nedlac of its intention to proceed with the protest action. This must be done at least 14 days before the action takes place.

Three significant notices in terms of Section 77 have been served on Nedlac.

National Union of Mine Workers (NUM) - Notice: Section 77 (1)( b )

NUM served a notice on Nedlac advising of possible protest action in February this year. The action was called as a result of potential large-scale retrenchment in the gold mining industry. Nedlac called a special management committee meeting. Through discussion, parties agreed to use the gold mining summit to find longer-term solutions to the crisis in the gold mining industry. The Chamber of Mines also agreed not to commence any new retrenchment processes in the period leading up to and including the Gold Mining Summit.

Western Cape Cosatu Region - Notice: Section 77 (1) ( b )

The Western Cape Cosatu Region issued a notice about protest action against the Western Cape Provincial government because of the education crisis in the Western Cape. Their grievances incd inequalities within the provincial education system between pupils of different races. Two meetings were held and a task team has now been set up to deal with the issue.

South African Democratic Teachers Union (Sadtu) -Notice: Section 77 (1)( b )

South African Teachers Democratic Teachers Union issued a notice against national government in relation to the education crisis. The reasons for the possible protest action inc overcrowding and provision of text books. Nedlac called a special management committee meeting to consider SADTU's notice of protest action. Five representatives each, from SADTU and the Ministry of Education were invited to attend the meeting.

Towards a Uniform Tariff Pricing Policy

Ensuring that communities both receive and pay for basic services like water, electricity, refuse removal and sewerage - is a central challenge facing our society.

Richard Kruger, a government representative at Nedlac, explains a key obstacle: 'At the moment there are hundreds of different tariff structures in operation. And there were no guidelines for municipalities regarding a service-tariff pricing policy.'

In early 1996 government produced a Possible Tariff Policy document. The Development Chamber of Nedlac was given the task of developing broad principles to be incorporated into a service tariff policy.

A fundamental question that negotiators wrestled with was how to achieve sustainable economic development while providing for the basic social needs of all. Andre Lamprecht, a business representative at Nedlac explains: 'The negotiating team had two difficult things to marry. Firstly, there's the issue of sustainability. But we also had to acknowledge the massive backlog of service provisions to those people who are not in circumstances to carry the costs of that service.' These thorny issues were finally resolved and a memorandum of understanding was concluded between the Nedlac constituencies in March this year.

Financing at local level

The agreement states that, as far as possible, services should be financed at a local and regional level. But it was also agreed that the minimum level of service should be defined locally. Aubrey Lekwane, co-ordinator of Nedlac's Development Chamber explains: 'Conditions differ from one area to another. What's right for one place, may not be for another. For example, pit latrines may be an appropriate basic service for one community but in a damp area, the conditions may make them a health hazard.'

The agreement also recognises that not all areas have the capacity to administer or carry all the costs of local services. In such cases subsidies and support would have to be provided by government. Kruger pointed out that, 'Government admits there is a need for subsidies for the poor. Government won't run away from its commitments.'

Services for the poor

The agreement recognises the reality of poverty within many communities. These conditions must also be taken into account when prices for services are set. It was agreed that the poor should not be excluded from the provision of services Life line tariffs should be established to ensure that all people have access to a basic service.

Consumers pay for what they use

The agreement states that scarce resources such as water need to be exploited with care. It endorses the principle that consumers should pay in proportion to the amount of services they consume. To achieve this effective metering should be put in place. Failure to pay for correctly and efficiently billed services should lead to consumers services being restricted or suspended.

Services and economic development

The need for services to contribute to sustainable economic development emerges clearly in the agreement. It was accepted that all households should pay the full operating and maintenance costs of the services they receive. However, measures should be put in place to assist poor households, currently defined as those earning lesss than R800 a month.

Businesses should only benefit from tariff concessions if they can be shown to contribute to processes of economic development in the area.

It was also agreed that high levels of tariffs on mining, industry and commerce could encourage companies to relocate, resulting in a loss of jobs and revenue in the area.

Fairness, Subsidy and Transparency

The principles of fairness was established to ensure that individuals and groups are not discriminated against. For example, in the past the impact of the group areas act and other apartheid policies resulted in even neighbouring communities receiving unequal services in terms of both quality and cost.

But the document also recognises the need for cross-subsidisation with income generated from service payments in more prosperous areas used to support the delivery of services in poorer communities. But this practice had to be transparent and take place according to clear criteria. .

'Historically there have always been cross-subsidies,' says Lamprecht. 'But no-one knew where the money went to.' In future businesses and residents should know, for example, whether their service payments are being drawn on to buy cars for officials, or to provide services to the poor.

LOOKING BACK ON 1997 AND LOOKING FORWARD TO 1998

All institutions need to reflect on their work. On 6 February, at the first Executive Council meeting of the year, Nedlac discussed its performance in 1997 and its vision for 1998.

Everyone agreed that 1997 was a difficult year, but the institution had emerged more mature and resilient. Nedlac should not be measured simply by the number of agreements reached, but by the 'culture of discussion' that is being built up in our society. Nedlac reflects the deep differences that exist in our country but it also shows that it is still possible to discuss and debate difficult and contentious issues. Nedlac needs to build more confidence in the process of social dialogue and in the relationships between the parties.

In this past year a number of key lessons were learnt:

• Negotiations over the basic conditions of employment were difficult. These difficult negotiations reflect the sharp differences of opinion on the issue. But they also reflect a failure of process. Nedlac was unable to have any effective dialogue on this issue. The process focused on many bilaterals and alliance discussions.
• Debate on macroeconomic policy was limited. The role of the Public Finance and Monetary Policy chamber needs to be clarified.
• It was also felt that a more effective communications strategy to build confidence in the Nedlac process was needed.
• Vision for 1998
• Two issues emerged as top priorities for 1998:

1. The need to build a common vision through which the more difficult issues, which have so far eluded agreement making, could be tackled.

2. Employment creation and the upcoming job summit.

Other issues to work on inc: improving communication to grass-roots members; increasing the representation of women and strengthening community capacity in all chambers .

Workplace Challenge - Tackling productivity head on

The World Economic Forum's latest global competitiveness report ranked South Africa 52 out of 53 industrialised nations on skills and productivity. Furthermore, South Africa's membership of the World Trade Organisation (WTO), has meant that our domestic markets have been opened to foreign producers, who often have better priced and better quality products.

The Workplace Challenge, a project of the Trade and Industry Chamber of Nedlac, is tackling this problem head on. And labour, business and government are tackling it together. The Workplace Challenge aims to increase the efficiency and competitive capability of South African sectors and firms. The Workplace Challenge Project was established in 1996 and the second phase was launched in March this year.

Key issues for workplace change

Phase one of the project involved broad participation from key players. A common language and understanding of what productivity is was developed. Country wide workshops identified major issues around workplace change. These incd:

• A focus on working smarter rather than job shedding.
• Impact where the action is (at the point of production).
• Enhance the sector potential for investment and investor confidence.

Building management/worker co-operation for better company performance and shared benefits.

Mike Macdonald, a business representative involved in the programme comments: 'In the past labour viewed productivity as more work for no benefits. Employers looked for higher productivity but were not prepared to reward better work. The workshops provided an opportunity for both sides to come together and talk about the mutual benefits of increased productivity.'

Criteria for selecting firms to be incd in the second phase were then drawn up. The criteria incd the sector or industry having the potential to grow, sound industrial relations and a commitment from business and labour to workplace change.

Two sectors, footwear in KwaZulu/Natal and Plastics in Gauteng have been selected for piloting. Other sectors are currently submitting proposals for consideration by the Workplace Challenge Committee.

In her opening address at the launch of Phase 2, held at DTI Plastics, Deputy Minister Phumzile Ngcuka-Mlombo said: 'The Project reaches into the core of the problem. It aims to intervene at the factory level, where production actually takes place.'

Phase two translates the ideas from phase one into practice in specific sectors and regions and uses these as pilots to demonstrate the effects for the rest of the economy.

At these pilot sites, the parties will be assisted in making changes to work organisation and working practices. Productivity performance and a range of other performance indicators like re-work, downtime and absenteeism, will be measured at the beginning and the end of each pilot study.

Participants will also be trained and educated on relevant issues affecting the competitive position of the firm. Firms identified as pilot sites will be required to share information with other firms in their sector as a condition for obtaining state-funded assistance in this project.

Nedlac Executive Director Jayendra Naidoo says: 'The Workplace Challenge has been designed on the premise that the key to economic development lies in successfully restructuring our workplaces. It is for this reason that this initiative targets individual firms at the point of production within identified sectors of the economy. Companies will also be working towards specific measurable objectives as agreed to between unions and management. '

The Department of Trade & Industry (DTI) have provided funds for the project.

Unemployment and the need for exponential employment creation has been set as South Africa's top priority by President Mandela in his address to the opening of Parliament this year and this view is shared by all the parties in Nedlac.

The convening of a Presidential jobs summit has been proposed to bring together all stakeholders to tackle this important matter. The President has stated: "... the Jobs Summit is perhaps the most important event since our first democratic elections; an important launching pad for a determined national drive as we move into the 21st century."

The idea of a jobs summit emerged from the recommendations of the Comprehensive Labour Market Commission in 1996. However, the idea is not unique to South Africa, the European Union convened such a summit in November last year to examine member states' best practices in tackling the unemployment problem.

It is envisaged that the jobs summit will identify and agree on ways of creating more jobs in the economy. Nedlac has recognised that this will require a concerted effort by each of the Nedlac partners to enhance employment-creation. It is also understood that the parties need to identify and address the various ways in which the economy is currently structured that constrain the ability of stakeholders to take advantage of employment-generating opportunities. On this basis, the agenda of the jobs summit will be clustered as follows:

1.The broad framework for employment creation, including creating a conducive environment for employment creation.

2.Specific programmes and mechanisms to create new jobs, protect existing jobs and ameliorate the social consequences of restructuring and unemployment.

Nedlac has agreed that while the jobs summit will be convened on an urgent basis, the summit will be the culmination of a preparatory process of engagement and negotiation between key stakeholders.

A three-phase preparatory process has been embarked upon by Nedlac:

A first-phase of investigation, information-sharing and setting priorities, initially taking place within each constituency and ending in a senior-level workshop that determines the agenda for phase two. Constituency submissions focusing on the two clusters of issues mentioned above.

A second-phase of discussion and negotiation with the objective of concluding agreed substantive proposals to take to the jobs summit. Nedlac's Management Committee on 24 April 1998 is expected to establish task teams to discuss and negotiate the substantive issues and develop recommendations for consideration by the Executive Council of Nedlac. This phase would conclude with the holding of the summit.

Substantial post-summit work is envisaged. This will inc implementation and further development of issues identified in phase one and two.

The date of the jobs summit will be determined by the President but will be informed by progress made in the preparations. No date has been set for the summit as yet but guidance will be provided by Nedlac's Management Committee towards the end of April.

The importance of this process towards the jobs summit has led the Executive Council to establish a special supervisory structure that will manage the process at a senior leadership level within constituencies. This structure will commence meeting in mid-April and will consider the date of the jobs summit and the agenda of the summit. This supervisory structure will interact regularly with a jobs summit technical committee that will conduct more detailed technical work on specific issues.

The Public Finance and Monetary Policy Chamber is faced with a challenge.

Minister Trevor Manuel

Visit to Nedlac by Danish Prime Minister

Jayendra Naidoo, Nedlac's Executive Director with Mr Poul Nyrup Rasmussen, the prime minister of Denmark and his wife, Mrs Lone Dybkaer at a meeting hosted by Nedlac recently.

The meeting was attended by senior constituency representatives, provided for an open exchange of views and ideas on South Africa's transformation. This was followed by specific discussions on macroeconomic policy, labour market reform, and the future role of trade unions.

RESOURCES AVAILABLE FROM NEDLAC

Code of good Practice on Retrenchments

Nedlac has issued a code of good practice on dismissals based on operational requirements, that is retrenchments and redundancies. The code will be added to Schedule 8 of the Labour Relations Act.

Code of Good Practice on Picketing

A code of good practice on picketing has been issued by Nedlac in terms of section 203 of the Labour Relations Act. The code, which will be published in the Government Gazette, provides practical guidance to workers, trade unions and employers as well to other parties who may be involved or effected by a picket, including the CCMA, the Labour Court and members of the public.

Memorandum of Understanding on Service Tariffs

This memorandum reflects an understanding between the Nedlac constituencies on the principles to be incorporated into a service-tariff policy. The memorandum of understanding sets a broad framework upon which local authorities are able to determine prices for basic services consumed, such as water, electricity, refuse removal and sewerage.

Nedlac Report on the National Water Bill

This agreement reflects broad consensus by the Nedlac constituencies on the political intentions of the envisaged legislation in respect of management, protection, conservation and regulation of the national water resources.

Benchmarking South Africa for Labour Intensive Development, Draft Report, January 1998, prepared by SRI International.

Nedlac News Update, a regular quick look at the issues under discussion in Nedlac.

All publications can be ordered from Mbuso Ngcongo, telephone (011) 482-2551, fax (011) 482-4650 or e-mail  mbuso@nedlac.org.za.