Address by Honourable Minister of Labour, Membathisi Mdladlane at the 11th Nedlac Annual Summit, Gallagher Estate, Midrand

09 September 2006

THEME: TAKING STOCK, FRUITS OF SOCIAL DIALOGUE, CHALLENGES OF SOCIAL DIALOGUE AND SUSTAINABLE DEVELOPMENT

Programme Director
Honourable Deputy President, Phumzile Mlambo- Ngcuka,
Honourable Ministers present,
Government Officils,
NEDLAc Executive Director, Herbert Mkhize,
Leaders from all the NEDLAC constituencies,
Distinguished guest,
Ladies and Gentlemen,

I am honoured to address this auspicious summit as an enthusiastic proponent of social dialogue, which is the most effective weapon in our arsenal to address the challenges of sustainable development in our country.

The International Labour Organisation adopted a resolution on tripartism and social dialogue at the 90th session of International Labour Conference in 2002. Programme Director, the importance, power and fruits of social dialogue are aptly captured in the resolution which states that, "social dialogue and tripartism have proved to be valuable and democratic means to address social concerns, build consensus, help elaborate international labour standards and examine a wide range of labour issues on which the social partners play a direct, legitimate and irreplaceable role and… Recalling the essential role of the social partners in stable economic and social development, democratization and participative development and examining and reinforcing the role of international cooperation poverty eradication, promotion of full employment and decent work, which ensure cohesion of countries."

In South Africa institutionalized social dialogue occurs at many levels but the principal institution in which it occurs is NEDLAC. It is the heart and pulse of socio-economic policy formulation in the country. I take this opportunity to commend the various constituents, their representatives and the staff of this institution fro their excellent work in making NEDLAC a resounding success and moreover, I salute them for their immense contribution in ensuring that the country is viewed as a shining example of social dialogue amongst heavyweights internationally.

Social dialogue has transformed a hitherto adversarial industrial relations landscape under apartheid into one that is relatively stable and harmonious. This characterization is borne out by the fact that the number of strikes and person days lost in our economy has been substantially reduced, relative to the situation under apartheid regime. A stable economy boosts a country's attractiveness and investor appeal leading to augmented levels of foreign direct investment, which in turn has potential to address development deficits.

In recent times, NEDLAC reached a milestone in its young history for instrumental role in the landmark Growth and Development Summit Agreement that was signed in June 2003. The summit brought together Government and other social partners in an enduring partnership anchored on a shared and common understanding and commitment to tackle unemployment, poverty, social development and economic growth.

Despite the achievements in relation to social dialogue, there are many challenges that need to be addressed in order to optimize the fruits of this powerful practice. One of the key challenges relates to the perceived inefficiency and ineffectiveness of NEDLAC from certain quarters. Criticism has been scathing particularly with regard to the monitoring capacity of NEDLAC. In light of developments and new challenges since Nedlac came to existence the cabinet came to a conclusion that Nedlac review should be conducted. I am informed that the ILO has been commissioned to do this and that soon they will be reporting on their findings. Whatever their findings will be one thing certain is that, social dialogue remains at the centre of our hearts to better the lives of South African Citizens.

As social partners, we should raise awareness of NEDLAC to the broader public amongst government departments who do not utilize it. In terms of the operation of NEDLAC, the institutional capacity needs to be addressed so that there is a well resourced secretariat capable of adopting a more proactive role in implementing the decisions by the social partners.

Social dialogue is the most effective mechanism to address the challenge of sustainable development. Since its birth in 1995, NEDLAC has positioned itself as the premier institution of social dialogue and it has kept the vibrant flame of social dialogue burning bright. There have been challenges, and there will be more, but it is my strong conviction that the developmental challenges facing this country will not be solved without recourse to robust and effective dialogue amongst social partners.

I wish that this summit engenders fruitful deliberations and adopt appropriate declarations.

Thank you.