1996 Annual Report

Framework for social partnership and agreement-making in Nedlac

A key focus of Nedlac debate during its first year has been on the need to develop aframework for social partnership and agreement-making. At its simplest level, this debatehas been about the importance of coordinating the work of Nedlac's chambers. As early asMarch 1995, the parties began expressing the need for a mechanism or strategic frameworkto coordinate and align the work of the chambers, recognising that areas under discussionin one chamber often had a bearing on the work of other chambers.

Other origins of the debate include the need to avoid a piecemeal, or ad hoc, approachto policy-making, and a recognition, after the LRA negotiations, that on many criticalissues a superficial consensus existed. The debate has also been about acknowledging theneed in South Africa for an agreed economic-policy vision and implementable strategy forgrowth and jobs where the responsibilities or requirements of the Nedlac social partnersare spelt out and negotiated in Nedlac and at industry or sectoral level. In the course ofthese debates the possibility and feasibility of the social partners reaching a broadsocial accord or a series of accords has been discussed.

To take these debates forward, the Executive Council in July 1995 tasked thesecretariat with the development of a document which would address the strategic thrustand agenda for the Nedlac work programme. This document, entitled "Framework forsocial partnership and agreement-making in Nedlac", was developed in a consultativemanner and has reference to the thinking and discussion taking place in each of the Nedlacconstituencies. In October 1995, the Nedlac Management Committee agreed that the documentshould be formally tabled before the Executive Council and be made public. It was placedbefore the Executive Council in November 1995.

In the document's introductory comments, the need for a strategic framework wasmotivated as follows:

"Addressing the challenges of unemployment, poverty and crime, as well as low productivity, low economic growth and low rates of investment, requires the social partners to have a common approach to their broad goals of creating jobs, economic growth, equity and participation, to how these goals can be achieved and on how each of the constituencies can contribute. In the past social and economic policy-making has been characterised by conflict and adversarialism. This reflects the era from which South Africa has emerged-an era based on sharp inequalities and polarisation. In creating Nedlac, the social partners have acknowledged that each has the means to both enhance or hinder the transformation process. Cooperation between the constituencies towards a common approach must be based on an explicit recognition by the constituencies of the need to work towards a longer-term vision, and to consider the need, where necessary, for specific shorter-term trade-offs to achieve this vision.

"The essence of a social partnership consists of a cooperation between the key social forces based on an exchange of clearly defined trade-offs made by each constituency. Agreements should be made which go beyond the different and potentially conflicting interests of the constituencies and instead seek a partnership which in a long-term perspective produces a higher value than that which each party can reach on its own. This approach to agreement-making can only succeed if the constituencies act within an agreed national framework."

The November 1995 Executive Council meeting agreed that the secretariat document shouldbe followed by the development of a joint constituency document which should take accountof the issues raised in the secretariat document. It also agreed on a process for takingdiscussions forward. As input to the joint document, Nedlac constituencies began work onconstituency proposals. To date the following documents have been developed:

  • Labour: "Social equity and job creation-the key to a stable future, proposals by the South African labour movement".
  • Business South Africa: "Background document for 'social accord' process".
  • Nafcoc: "Growth and development with equity strategy".

It is quite evident from an analysis of these documents that there are certain quitefundamental issues on which the constituencies' views are far apart and where substantialdialogue and negotiation would be needed to forge a closer agreement. There are, however,also areas where there is a high degree of commonality of interests and views.

The Executive Council reviewed the process underway at its April 1996 meeting, andagreed to realign the process and adjust timeframes. It was agreed that the next stepshould be the preparation of a consolidated document which would take account of theproposals in the constituency documents and also other inputs from the constituencies. Thedocument should identify areas of potential agreement and disagreement, and should serveas the basis for a series of senior planning meetings which should commence in May 1996.

It is seen as vital that this process assists not only in bringing even greater focusto the work of the Nedlac chambers, but that it goes some way to contributing towards thedevelopment and implementation of economic programmes and policies that substantiallyaddress the goals of sustainable economic growth and job creation.

 

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