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Deputy President challanges Nedlac to secure tough employment accord

Nedlac has been issued with a challenge: to secure a new "tough employment accord" not later than the Nedlac Summit of May 2000. Deputy President, Jacob Zuma issued this challenge to Nedlac's Executive Council at a special session held on 26 and 27 August.

The Deputy President posed the question: Have Nedlac's constituencies worked jointly and severally to promote the goals of economic growth, participation in economic decision-making and social equity? He concluded that although Nedlac parties had worked together to finalise pieces of labour and other legislation, had secured "sufficient consensus" on a number of issues, and had worked together to produce Nedlac's "proudest achievement to date", the Presidential Jobs Summit Declaration, the answer to the question could not be a resounding "yes".

Nedlac could be proud of the new commitment to job creation, but there were fundamental issues which had to be resolved if the mandate of Nedlac was to be fulfilled. These issues incd productivity and macro-economic policy, issues around economic restructuring and the rights and obligations of employers and employees in relation to labour market issues such as "dismissal for operational reasons." Deputy President Zuma said that hard bargaining on these difficult issues must now begin in order to complete the accord that was reached at the Jobs Summit. In this context, he said the challenge for Nedlac was clear: to put the "hard" issues back on the table and find solutions urgently.

COME TO THE TABLE WITH TEA

In true Nedlac tradition, Cosatu General Secretary Zwelinzima Vavi was the first to come up with an acronym for the Deputy President's challenge. He said that in principle, organised labour would want to ensure that before the next Nedlac summit of May 2000, they come to the table with tea … tea? A Tough Employment Accord.

Vavi thanked the Deputy President for reminding the Nedlac parties of the issues that were not concluded in the run-up to the Presidential Jobs Summit. He said that the challenge to the Executive Council would be how to ensure that the issues that were not concluded find a way into the work programmes of all the Nedlac chambers.

 

Deputy Chairperson of Business South Africa, Andre Lamprecht, said that Business had noted the careful balance that was struck in the Deputy President's speech. He said that it was up to the parties to collectively instill sufficient confidence in themselves and in the economy so as to encourage investment. The other vital aspect to ensuring adequate sustainable growth was skills development, said Lamprecht.

INTERNATIONAL INVESTMENT COUNCIL

In his opening address to Parliament after the June elections, President Thabo Mbeki introduced the concept of establishing an international investment council, as well as four working groups, where government would interact on a bilateral level with stakeholders. Deputy President Zuma said that these groupings would be important in ensuring that South Africa is an attractive destination for foreign investment.

In discussing the Deputy President's speech, the Nedlac parties were keen to find out more details about these groups, who would be serving on them and how they would affect Nedlac.

Minister of Trade and Industry, Alec Erwin, whose task it will be to set up the groupings, explained that Nedlac would continue to fulfil its fundamental purpose of bringing social partners together to reach maximum consensus.

The purpose of the international investment council would be to pull together a grouping of senior business leaders from across the world that could begin to grasp South Africa's economic vision and effectively become ambassadors for South Africa. The second purpose would be to use these experienced international business people as a sounding board - getting their insights on how they see Africa, and South Africa. They were looking at the council consisting of about 15 people.

The four working groups would be separate from the investment council. They would constitute contact points between the President and important stakeholders. The four groupings are: big business; black business; commercial agriculture and the trade unions. Deputy President Zuma said in his speech that they would meet relatively infrequently and be a vehicle for high-level decision-makers to communicate directly with the Presidency. Issues arising from these interventions may even be referred to Nedlac for elaboration, resolution and implementation, said Zuma.

EMPLOYMENT CRISIS

Deputy President Zuma, in elaborating on his challenge regarding the employment accord, affirmed that "we all agree that employment creation cannot be achieved through labour market management alone. Getting the mix of labour market, industrial, development and macro-economic policies right is fundamental to job growth." He said that South Africa's input into the World Trade Organisation was as important as productivity for employment.

Constituencies had an opportunity to further debate the Deputy President's input during a focus session on the employment crisis.

 

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