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COMMISSIONS AT THE SUMMIT

Globalisation, Unemployment and Decent Work

Cunningham Ngcukana of Labour, who addressed the commission, said that in response to globalisation, companies have tended to out-source what is regarded as non-core business; increase casual labour in order to reduce the cost of social benefits; put pressure on governments to deregulate the labour market; steer investment towards capital methods of production and accelerate mergers and acquisitions. 

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Fadila Lagadien, Cunningham Ngcukana and 
Rams Ramashia in the commission on 
Globalisation, Unemployment and Decent Work

Governments have lowered trade tariffs, removed exchange controls, introduced tax incentives, reduced the budget deficit, privatised or restructured state enterprises and removed government subsidies. 

The effect on labour globally has been widespread job insecurity, an increase in unemployment as a result of retrenchments; increase in workplace injuries; lower wages and longer working hours; denial of basic worker rights and the reduction of the collective bargaining power of the workers. He called on the Nedlac parties to embrace the challenge set out by the Director-General of the ILO to focus on the "decent work deficit".that which was addressed by.

Department of Labour Director-General, Rams Ramashia was the respondent. He coined terms for the two extremes of how people react to globalisation - globophobia (fear of globalisation) and globophilia (love of globalisation). He emphasised what was important was how countries turned the benefits to their best advantage, whilst minimising the negative aspects of globalisation. He said that one of the biggest challenges facing South Africa was how to provide skills so that the many jobs that were advertised weekly could be filled, and unemployment levels reduced.

Globalisation, Investment and Growth

Elias Masilela, Chief Director: Macroeconomic Policy in the National Treasury addressed the commission. His presentation covered issues such as South Africa's poor savings performance, the need for more foreign direct investment and more capital expenditure as well as negative sentiments about the South African economy and exchange rate volatility and the benefits of debt management and sound fiscal management. He said that Government would be maintaining a growth-oriented balance of spending. Sipho Masuku of Community responded. He raised concerns about the commitment of the domestic private sector to investment, the regulation of the informal sector and the impact of privatisation on marginalised groups.

 

Nedlac, social dialogue and the multi-lateral institutions

Professor Raymond Parsons of Business presented the main address. He argued that there were regional and global challenges for social dialogue. On a regional level, he said that South Africa should be promoting social dialogue in other SADC countries. On a global level, social dialogue could help ensure that the multilateral institutions, such as the World Bank, the International Monetary Fund and the World Trade Organisation, are reformed so as to make them more responsive to consultation. Faizel Ismail of the Department of Trade and Industry responded. He said that Government's belief was that strategic engagement in the world economy and system was needed, in order to be able to change some of the rules and the way the "game" is played. This could be done by mobilising the positive forces including developing countries and social forces within countries from the North. Government had made this the focus of its involvement in all of the various multi-lateral institutions, but especially through the United National Conference for Trade and Development, UNCTAD, and the World Trade Organisation.


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Professor Raymond

 

 

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