HIGH LEVEL DISCUSSION ON JOB LOSSES
In July 1999 Cosatu tabled seven reasons for intended protest
action relating to increasing job losses taking place. During the
discussions that followed the tabling of the Section 77 notice
between August 1999 and February 2000, it was agreed that there had
been sufficient progress on three of these issues, namely the
reduction of interest rates, the implementation of jobs summit
resolutions and the implementation of customs and excise
regulations. Four issues remained outstanding, and, on the basis of
these, Cosatu proceeded with the intended protest action,
culminating in a national stayaway on May 10.
At the Executive Council meeting of 19 June, the Nedlac parties
engaged in a fairly wide-ranging discussion of these four
issues.
Section 189 of the Labour Relations Act
Cosatu has been calling for this section of the Labour Relations
Act, which deals with retrenchments, to be changed so as to require
companies to negotiate retrenchments, rather than just consult
regarding retrenchments. Government has indicated that this issue
was raised during its process of consultations on the labour
legislation last year, and that legislation would be tabled at
Nedlac for discussion as soon as it had been passed by Cabinet.
This should be in the third week of July. The Minister of Labour,
Membathisi Mdladlana, indicated that there would be amendments
which strengthen the intention of the Act, including possibly
involving the Commission for Conciliation, Mediation and
Arbitration, the CCMA.
Insolvency
The Minister said that there were a number of issues related to
section 197 of the Labour Relations Act which deal with transfers
of companies which were receiving attention. In terms of the
Insolvency Act, amendments would be tabled which look at issues
such as informing workers of possible liquidations and providing
for a process of consultation. These amendments would be tabled at
Nedlac in conjunction with the other amendments to labour
legislation once these had been passed by Cabinet.
Tariffs
Cosatu's demand is that the government halt the accelerated
reduction of import tariffs. At the Executive Council meeting, the
Director-general of Trade and Industry, Alistair Ruiters, indicated
that government could not agree to a wholesale increase in tariff
levels, but said that it was prepared to discuss tariff levels as
part of an industrial policy review. It was agreed that Cosatu and
the Department of Trade and Industry would meet further to discuss
this issue.
Restructuring of state assets
Cosatu's Section 77 notice regarding job losses pointed
to several problems with the National Framework Agreement, which is
an agreement between labour and government on the restructuring of
state assets. The problems it raised were, amongst others, the
dispute resolution mechanisms, the enforceability of agreements and
the lack of clarity on the principles, objectives and process of
restructuring. At the Executive Council meeting, labour noted that
there had not been a meeting of the six-a-side structure for two
years. This structure had been receiving reports of restructuring
from various sectors.
Labour also called for a moratorium on the further
restructuring of state assets until engagement on the issue had
taken place, as it argued that further consultation on the issue
could be an academic exercise if restructuring was carrying on
without consultation with labour. Government argued that its
timetable for restructuring was a 4-year one, which meant that
there was sufficient time for engagement. Government also said that
it was unaware of significant restructuring having taken place
without consultation with labour.
It was agreed at the Executive Council that a meeting of
the six-a-side structure would meet to take these discussions
forward.