NEDLAC's 1999 - 2000 ANNUAL REPORT TABLED IN PARLIAMENT  

Nedlac's Annual Report, which covers the period 1 April 1999 - 31 March 2000, was tabled in Parliament by the Minister of Labour, Membathisi Mdladlana, today. The report shows that, whilst levels of activity at the Council declined as South Africa held its second democratic election, important progress was made in terms of positioning the institution to play a new role in the post-election period.

The first four years of Nedlac's activities focussed on negotiating individual pieces of legislation. In the year under review, the Council has begun to work towards the common strategic vision that is required to address issues of national priority, such as unemployment, poverty, growth and investment.

The year under review saw the appointment of a new Executive Director, Phillip Dexter, and new convenors for the government and community constituencies.

160 meetings

Despite the lower levels of activity, Nedlac held approximately one hundred and sixty meetings in the year under review. These meetings range from gatherings at the highest level - the Executive Council - through to task teams on specific issues. Each Nedlac meeting represents an opportunity for dialogue between the constituencies.

Agreements were reached on the Municipal Systems Bill, the ILO Convention on the elimination of the worst forms of child labour and on nine applications for demarcation under the LRA. Nedlac facilitated nominations to eight statutory bodies, and recommended the appointment of Labour Court and Labour Appeal Court judges, as well as the Judge President of the Labour Court.

Other issues tackled included the transformation of the Construction Industry, the EU-SA Trade Development and Co-operation Agreement, the SADC trade protocol, the Made in South Africa Campaign, strengthening Customs and Excise, Industrial Development Zones, Social Security, Unemployment Insurance and International Migration.

Research

Greater focus was placed on the importance of research to Nedlac's work. Reports were produced on the implementation of a workplace change programme, "the Workplace Challenge" in the plastics conversion sector and the capital equipment sector.

Under the Fund for Research into Industrial Development, Growth and Equity, Nedlac co-ordinated research into the tourism industry, cut flower industry, pharmaceutical production, sustainable production and South Africa's standards and quality assurance infrastructure.

A major research study on infrastructure delivery was completed, which involved a survey of 3000 households in the provinces of KwaZulu-Natal, the Northern Province and Gauteng to ascertain to what extent RDP goals have been met in terms of delivery, resources, projects and targeting of delivery.

Socio-economic report

The Nedlac Constitution requires the Council to report not only on the activities of the Council in the period under review, but on the economic and social trends that compose the framework for these activities. The report therefore brings together data drawn from reports of various governments departments, Statistics South Africa, the Industrial Development Corporation and the South African Reserve Bank. It shows that whilst economic growth levels have continued to recover, the period saw considerable job losses in the formal sectors of the economy. Development indicators reveal progress in the delivery of infrastructure and social services, but also highlight the threat that HIV/Aids poses to development. Labour market trends show the demand for professional and managerial skills increasing, with demand for lower skilled workers declining. In the section on trade and industrial developments, sector trends highlight the contribution that the transport and communications sectors, as well as the finance, real estate and business service sectors have made to economic growth. The agricultural sector also experienced growth for the first time since 1996. Direct investment levels, both foreign and domestic, were low, but higher levels of foreign portfolio investment were evident.

Section 77 notices

The Labour Relations Act requires Nedlac to consider notices of socio-economic protest action. In the period under review, two out of the six notices considered resulted in protest action - the Sactwu notice on job losses in the clothing, textile and footwear sectors, and the Cosatu notice on job losses.

Finances

Nedlac's financial statements are presented in the report for submission to Parliament. As a result of lower levels of activity, positions that were vacant for certain of the months under review, as well as the introduction of new financial and administrative systems which resulted in cost savings, Nedlac's overall expenditure declined from R5.9 million in 1998/99 to just over R5 million in 1999/2000.

Constituency Comments

The annual report contains messages from Nedlac's four constituencies. Overall government convenor, Rams Ramashia, re-iterated government's commitment to the goals of Nedlac: the promotion of economic growth, participation in economic decision making and social equity.

Overall labour convenor, Ebrahim Patel, said that after five years of activity, Nedlac's report card was impressive. He said Nedlac was a sophisticated bargaining and dialogue institution, tested in rough and smooth times.

Overall business convenor, Raymond Parsons, reminded constituencies of the challenge facing Nedlac to seek consensus on a strategic vision and perspective on economic policy.

Khulu Mbongo, overall community convenor, focussed attention on the need for Nedlac to bring its work programme in line with national priorities, finding a balance between its legislative or statutory role, and other challenges facing it.

Commenting on the release of Nedlac's Annual Report, the Executive Director, Phillip Dexter, said "As part of our re-positioning Nedlac, we have been concentrating on our relationship with Parliament. We have therefore taken very seriously our responsibility to report timeously and accurately to Parliament on both our activities and our finances. We are therefore very pleased that the Minister of Labour has been able to table this report to Parliament today, within three months of our year-end. We look forward to greater interaction with Parliament in the year to come."