ADDRESS BY THE HON MMS MDLADLANA, MINISTER OF LABOUR, REPUBLIC OF SOUTH AFRICA

Sandton Convention Centre, 27 September 2003

Programme Director
Deputy President,
Honourable Ministers,
Leaders of organised labour, business, and community constituencies,
NEDLAC Executive Director,
Distinguished guests,
Ladies and Gentlemen.

We thank you for this opportunity to again reflect on the past year, on the gains we have made and on the challenges that lie ahead.

This year's NEDLAC Annual Summit takes place against the backdrop of an eventful year for social dialogue in our country, particularly with the successful hosting of the Growth and Development Summit (GDS) and the departure of an able servant that steered the NEDLAC ship through many stormy waters, Mr. Phillip Dexter - the outgoing Executive Director.

Social dialogue is the only way (for addressing our challenges)

Mr. Herbert Mkhize, our newly appointed NEDLAC Executive Director, joins us at a time when the institutions for social dialogue in our country, particularly NEDLAC, have come under attack from some quarters including the leader of the opposition.

I wish to assure him and all our social partners that, as Government, we will continue to support NEDLAC and the institutions of social dialogue and social partnership in this country.

In this regard we are aware that we are in line with the practices of many successful nations and are viewed as a worthwhile example by many others. In recent years countless delegations have been received by NEDLAC from other countries, from our own continent and elsewhere.

The views of a lonely and minority set of individuals cannot derail us from the path we have chosen, that path of institutionalised social dialogue. It is possible that, in their eagerness to find fault with everything that we do, they are out of step with new realities and how the rest of the world has chosen to respond to them.

We feel vindicated, that ours can only be the correct path, because all the social partners stood firm in the face of these attacks.

We continue to draw strength from responses such as those of the overall business convenor, Raymond Parsons and many others. Writing in the recent NEDLAC Annual Report Raymond Parsons states that;

"Those critics who see much of social dialogue as a complete waste of time must also be reminded that, especially in an emerging market, effective social dialogue actually can reduce country risk. It helps to build the 'social capital' of a country like SA. By promoting an image of greater social stability, a developing economy can enhance investor interest and promote foreign direct investment".

We have ourselves made the economic case for social dialogue on this and numerous other platforms. We did this mindful also of the many political, moral and social justifications of the approach we have taken.

We believe that social dialogue promotes social cohesion and social stability, thus reducing potentially wasteful social conflict and enabling collaborative efforts for addressing national challenges such as poverty and unemployment.

Even the Nobel Prize winning economist, Professor Joseph Stiglitz, has provided support for this view by arguing that social dialogue… "helps to resolve market failures by promoting the sharing of information and collective action for common objectives".

That is why we will continue to promote social dialogue at the level of the workplace, the industry or sectoral level and nationally. It is the only way that we can strive to attain a better life for our people whilst deepening a culture of democracy and good governance.

The Growth and Development Summit and challenges facing NEDLAC

No greater evidence of the success of social dialogue can be seen, than the hosting of the GDS and what it reflects about the maturity of the social partners and the state of social dialogue in our country.

Indeed the GDS was an important step forward for us as a country and I would like to commend all the social partners and the NEDLAC Secretariat for their commitment and dedication that ensured that the event was a success.

I would like to reiterate the view we expressed at the Summit that;

"The GDS was not intended to be a magic wand after which all economic development challenges inherited from the past would disappear, but it gives us a programme for the next phase…a phase during which each of the constituencies shall roll their sleeves, jointly and severally, in pursuit of a common vision and a set of agreed priorities"

As social partners we must ensure that the commitment we showed in reaching the agreement is matched by the commitment we show during implementation. The expectations of our people are great and we simply must not fail.

I believe that the effective implementation of the GDS agreements is the single most crucial task that faces our new NEDLAC Executive Director during the coming year. It is my fervent hope that at the next NEDLAC Annual Summit, he will have an outstanding report on progress made.

Apart from the GDS, we have noted other important activities of NEDLAC and its various task teams during the course of the year. Some of these we can highlight, particularly because of the synergies they have with agreements reached at the GDS.

These include the activities of the Financial Sector Transformation and Diversification Task Team, the Development chamber's deliberations on co-operatives, the Trade and Industry chamber's handling of the BEE bill and WTO talks, and the various issues discussed in the Labour Market chamber.

Once again NEDLAC has provided a forum for robust and dynamic interaction between the social partners. It has also been the forum where social partners have found common areas of agreement about how they can best contribute to a better life for our people.

These achievements of NEDLAC that we have presented should not mask the real and serious challenges that this institution faces, as we complete the first decade of democratic rule in our country.

Once again, we draw strength from the frank assessment of some of these challenges in the contribution to the NEDLAC Annual Report by the overall Community Convenor, Fadila Lagadien. She clearly states both the management and operational challenges that she sees as needing urgent attention in the New Year. On many of them we concur with her.

For its part, Government is committed to playing its role to ensure that NEDLAC is a viable and effective forum for social dialogue. The appointment of Mr Mkhize as the new Executive Director should provide fresh impetus for engagement on critical challenges facing the institution, such as the shortfalls in capacity-in terms of finances, personnel and equipment.

Nevertheless, the responsibility should be also given to the institution to begin to identify areas of priority and to allocate its resources appropriately. NEDLAC should be able to identify its strengths and not seek to do everything at the same time.
The next year is also one where the role of the social partners in NEDLAC will again be the focus of much attention. We expect that all of us will seek to improve our participation in this structure and to deliver on our stated commitments in the various reports and declarations.

Concluding remarks

Chairperson, it is my hope that as social partners we will all promise to nurture, consolidate and strengthen our existing social partnership. The dividends will undoubtedly be a better life for all our people.

Let us together embark on this journey of promise and rewards.

I thank you.