General Activities

GROWING DIALOGUE ON STRATEGY

Several vehicles have been created in Nedlac for more strategic discussions between the parties, often at the most senior level within constituencies, on issues of key importance.

Executive Council focus sessions

Since 1997, each Executive Council meeting has held a special focus session on an issue of key strategic importance to all parties. The focus sessions provide an opportunity for discussion on important issues at the most senior level in Nedlac.

The first of these sessions - in February 1997 - focused on monetary policy and included an input from the Governor of the South African Reserve Bank, Dr Chris Stals.

Housing was the focus of the second Executive Council meeting of 1997. The Minister of Housing gave a detailed presentation on the status of delivery, constraints to delivery and various policy and programme initiatives to enhance delivery.

An overview of the latest developments in health policy was presented by the Director-General of the Department of Health to the November 1997 meeting of the Executive Council.

The first meeting of 1998 focused on the 1998-99 Budget in the context of government's policy and programme priorities as outlined by the President in his opening address to Parliament.

Chamber policy sessions

To give greater strategic direction to the work of Nedlac's chambers, senior-level chamber policy sessions are convened. These policy sessions are addressed by the minister or ministers relevant to the particular chamber.

The Trade and Industry Chamber has held several of these policy sessions with the Minister of Trade and Industry. Sessions took place in April and November 1997, and more recently in April 1998. A wide range of policy matters were discussed, including competition policy, foreign trade relations, the Workplace Challenge project, industrial development zones, and a framework for export and investment promotion.

The Development Chamber's first policy session was held in January 1998 and was attended by the Minister of Housing, the Minister of Public Works, and the Minister of Welfare. Issues raised by the ministers for further consideration by the chamber included the transformation of the construction industry, revamping community-based public works programmes, targeted poverty relief schemes, initiatives to promote housing delivery, and the social security system.

The Public Finance and Monetary Policy Chamber held a policy session with the Minister of Finance in March 1998. The focus of the policy session was the role and work programme of the chamber, and the session provided an opportunity for parties to reflect at a strategic level on the quality and value of the chamber's work. The Minister of Finance also presented an overview of the 1998-99 Budget and the medium-term expenditure framework at the policy session.

The Labour Market Chamber has not yet held a policy session.

Commissions at the annual Nedlac summit

In 1997, commissions were added to the programme of the annual Nedlac summit to provide an opportunity for debate between senior representatives attending the summit. Commissions focused on the macroeconomic environment, strategies to create and promote employment, investment and industrial policy, and improving quality of life and reducing inequality.

The commissions were well-received by participants and more will be added to the 1998 Nedlac summit programme.

PREPARATIONS FOR A JOBS SUMMIT

The urgent need to address employment creation is regarded as a top priority for South Africa and this has been recognised by all parties in Nedlac. The convening of a presidential jobs summit has been proposed to tackle this most important matter.

It is envisaged that the jobs summit will identify and agree on ways of creating more jobs in the economy. Nedlac has recognised that this will require a concerted effort by the Nedlac partners to enhance employment-creation opportunities. Further, it is understood that the parties need to identify the structural impediments to job creation, and that an ambitious and coordinated programme is needed to overcome these constraints.

Nedlac has agreed that while the jobs summit will be convened on an urgent basis, the summit will be the culmination of a preparatory process of engagement and negotiation between key stakeholders.

A three-phase preparatory process has been embarked upon by Nedlac:

1. A first phase of investigation, information-sharing and setting priorities, initially taking place within each constituency and ending in a senior-level workshop that will determine the agenda for the second phase. Constituency submissions will focus on two categories of issues: key employment-generating opportunities, and creating a conducive environment for employment creation.
2. A second phase of discussion and negotiation with the objective of concluding agreed substantive proposals to take to the jobs summit. This phase will conclude with the holding of the summit, and is expected to commence at the end of April 1998.
3. Substantial post-summit work is envisaged. This will include implementation and the further development of issues identified in the first and second phases.

A date for the jobs summit will be determined by the President but will be informed by progress made during the preparations. No date has been set for the summit yet.

THE CENSUS

The first national census-to count all South Africans-in a democratic South Africa was held in October 1996. The census is critical to providing decision-makers with accurate demographic information on which to base their plans for basic services and infrastructure.

The preliminary results of the census were published in June 1997 and these indicated that the population of South Africa consisted of 37,9 million people, considerably less that than estimated population of 42,1 million.

Concern was expressed that government agencies were making important economic decisions on the basis of the published preliminary census results. A committee was appointed in Nedlac which met with Central Statistical Service, independent experts, and with the chairperson of the census evaluation committee of the Interim Statistics Council to evaluate, as far as possible, the accuracy of the results.

PROTEST ACTION TO PROMOTE OR DEFEND THE SOCIO-ECONOMIC INTERESTS OF WORKERS

Section 77 of the Labour Relations Act provides for protest action to promote or defend the socio-economic interests of workers. Section 77(1) of the Act states that:

"Every employee who is not engaged in an essential service or a maintenance service has the right to take part in protest action if-

"(a) The protest action has been called by a registered trade union or federation of trade unions;
"(b) The registered trade union or federation of trade unions has served notice on Nedlac stating-

"(i) The reasons for the protest action; and
"(ii) The nature of the protest action;

"(c) The matter giving rise to the intended protest action has been considered by Nedlac or any other appropriate forum in which the parties concerned are able to participate in order to resolve the matter, and
"(d) At least 14 days notice before the commencement of the protest, the registered trade union or federation of trade unions has served a notice on Nedlac of its intention to proceed with the protest action."

If the Act is complied with, workers participating in the protest action are protected against disciplinary action.

Nedlac has been served with 16 notices of protest action in total. Thirteen of these notices were served on Nedlac in the period 1 April 1997 to the end of March 1998.

1. The South African Society of Bank Officials, in protest against criminal attacks on bank employees (May 1997).
2. The National Union of Mineworkers, in protest against certain aspects of the restructuring of the electricity distribution industry (June 1997).
3. The South African Commercial, Catering and Allied Workers' Union. The issue in dispute was a matter of mutual interest between the union and employer and, as such, a section 77 notice was unnecessary (June 1997).
4. The Steel Mining and Commercial Workers' Union. The issue in dispute was a matter of mutual interest between the union and employer and, as such, a section 77 notice was unnecessary (August 1997).
5. The Paper, Printing, Wood and Allied Workers' Union. The issue in dispute was a matter of mutual interest between the union and employer and, as such, a section 77 notice was unnecessary. The notice was later withdrawn (August 1997).
6. The Public Servants' Movement, in protest against the KwaZulu-Natal Department of Local Government and Housing's failure to resolve certain grievances. A meeting took place between the union and the Premier (October 1997).
7. The National Union of Furniture and Allied Workers of South Africa, in protest against the bargaining council for the furniture and bedding manufacturers industry (November 1997).
8. The National Union of Mineworkers, in protest against large-scale retrenchments in the gold-mining industry and the subsequent impact on communities. Nedlac facilitated two meetings between the union and the Chamber of Mines (February 1998).
9. The Education, Health, Church, Welfare and Allied Workers' Union. The issue in dispute was a matter of mutual interest between the union and employer and, as such, a section 77 notice was unnecessary (February 1998).
10. The Western Cape region of Cosatu, in protest against the provincial government's failure to address the education crisis in the province. Nedlac facilitated two meetings between the parties (March 1998).
11. The South African Democratic Teachers' Union, in protest against inequalities in the education system. Nedlac facilitated a meeting between the union and the Ministry of Education (March 1998).
12. An interim procedure for dealing with section 77 notices has been agreed. 
13. Nedlac has also sought legal opinion on the requirements of section 77 of the Act to clarify its meaning.
14. In May 1997 action was brought in the Labour Appeal Court by BSA against Cosatu regarding Cosatu's intended protest action in support of its position on the Basic Conditions of Employment Act. Nedlac was cited as a second respondent in the action. The judgement of the Labour Appeal Court directs how section 77, and specifically section 77(1)(c), should be interpreted. The court interdicted Cosatu's planned action and found that section 77(1)(c) had not been complied with as it was not clear that any one or more of the parties was no longer committed to resolving the matter in dispute.
15. Legal opinion, as well as the majority judgement of the Labour Appeal Court, have formed the basis for the development of a revised procedure for dealing with section 77 implications. This procedure will be finalised shortly.

OUTREACH AND INFORMATION-SHARING ACTIVITIES

Links with other participative structures

Provincial structures have been set up in three provinces: the Western Cape Provincial Development Council, the KwaZulu-Natal Regional Economic Forum, and the Eastern Cape Social and Economic Consultative Council. During 1997, a start was made to build informal working relationships with these structures. More frequent interaction and exchange of information is planned for 1998.

As in previous years, Nedlac facilitated participation in various initiatives and structures in the past 12 months, including the following labour market institutions:

• The labour courts.
• Essential services committee.
• Unemployment Insurance Fund board.
• Wage Board.
• Advisory council on occupational health and safety.
• Employment conditions commission.
• Productivity advisory council.
• National standards bodies of the South African Qualifications Authority.

Foreign visitors to Nedlac

Nedlac has continued to host a wide range of local and foreign visitors in 1997.

Nedlac has met with senior representatives from the following important international organisations: the ILO, the World Bank, the International Monetary Fund, the United Nations Development Programme and the World Economic Forum.

Meetings have also been held with tripartite delegations from China and Zimbabwe, as well as with the social and economic councils of Mauritius and Flanders. Nedlac has also hosted visiting trade unionists from Japan and the United States, as well as parliamentary delegations from Zimbabwe and Germany. Other meetings have occurred with representatives from the European Union, the British High Commission and the Indian High Commission.

In February 1998, Nedlac hosted the Prime Minister of Denmark, Mr Poul Nyrup Rasmussen. The visit, which was attended by senior constituency representatives, provided for an open exchange of views and ideas on South Africa's transformation. This was followed by specific discussions on macroeconomic policy, labour market reform and the future role of trade unions.

The National Policy Association (NPA) of the United States promotes joint policy work between senior leaders in business and labour on issues like collective bargaining and economic policy. In May 1997, Nedlac hosted a visit by the NPA to South Africa. This was a follow-up to a visit to the NPA by the Nedlac secretariat in 1996. The NPA held talks with the Nedlac constituencies and other related institutions.

Locally, Nedlac interacts with a very wide range of institutions whose work impacts on the issues under consideration and processes being undertaken by Nedlac. One of the recent highlights of this type of interaction was the hosting of the parliamentary portfolio committee on labour in February 1998. The meeting focused on the work programme of the Labour Market Chamber but also touched on the jobs summit and the general work programme of Nedlac. The meeting represented an important moment in the development of Nedlac's relationship with Parliament.

International organisation of social and economic councils

Representatives of social and economic councils and similar institutions operating throughout the world have been meeting regularly every two years since 1989. The last meeting in Caracas in March 1997 formed a committee to prepare for the founding of an international organisation of social and economic councils. The aim of such an organisation is to promote dialogue and cooperation between similar councils and devise initiatives for the establishment of councils in countries where they do not currently exist. South Africa was invited to participate in this committee, which met in the Netherlands in September 1997. Nedlac's Executive Director attended the meeting.

Briefings, presentations and workshops

A large number of briefings, presentations and workshops were held during the year under review:

Presentations and briefings took place on the following topics:

• The functioning of the CCMA.
• The green paper on a skills development strategy for economic and employment growth.
• Provincial budgeting.
• Progress with constituting the SARS.
• The transformation of the Department of Labour.
• The green paper on migration.
• The green paper on the transformation of the construction industry.
• The white paper on a new employment policy for the public service.
• The national industrial participation programme.
• Anti-dumping and countervailing measures.
• The implementation of the export marketing and investment assistance scheme.
• The restructuring of Satour.
• The National Science and Technology Forum.
• The liquor bill.
• The white paper on environmental management.
• The establishment of Investment South Africa.
• An evaluation of the support programme for industrial innovation.
• Regional industrial location study.
• Overview of the history, structure and activities of the National Productivity Institute.
• Special focus sessions and workshops were held on:
• Housing.
• Health policy developments.
• The budget, in the context of government's policy and programme priorities as outlined by the President in his opening address to Parliament.
• Trade and employment.
• Provincial workshops on health and education.

Nedlac-ILO seminar on social dialogue

Nedlac, together with the ILO, held a tripartite seminar on experiences with social dialogue in the southern African region over three days in December 1997. Fourteen countries participated in the seminar: Botswana, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

The aims of the seminar were to examine the role of social dialogue in social and economic development, to analyse the strengths and weaknesses of existing tripartite consultative mechanisms in participating countries, and to study, in particular, the South African experience and what lessons it offers to other countries in the region.

The seminar concluded that a model for an effective institution of social dialogue should:

• Incorporate a balance between economic imperatives and social needs.
• Be representative and incorporate civil society and representatives of the informal sector and the rural population.
• Broaden or complement existing tripartite bodies to enable them to make an input into and influence decisions on economic, labour and employment issues.
• Assist countries to develop mechanisms for social dialogue which are adapted to their own history, tradition, culture and circumstances.
• Ensure that each of the parties to the dialogue is independent, is on an equal footing, is representative, has the mandate and the authority to commit itself on behalf if its constituents, and has the technical competence to engage in the dialogue.
• Capacity-building of the actors is key to the effectiveness of social dialogue.
• Acknowledge that government has a major role to play in providing adequate support to the mechanism for social dialogue.

In addition, the Nedlac secretariat is often requested to give presentations and briefings on Nedlac and its activities to many different organisations, including universities and trade union colleges.

Nedlac-CCMA-Department of Labour provincial workshops

Eleven provincial workshops were held in September 1997 to brief employers and trade unionists about the latest developments in Nedlac and the Department of Labour. The main focus of the workshops was the workings of the CCMA and how it deals with disputes that are referred to it. The workshops, which were organised and funded by Nedlac, were attended by over 700 participants.

Signing the Nedlac founding declaration on 18 February 1995 are, from the left, Tito Mboweni, the minister of labour; John Gomomo, president of Cosatu; Dave Brink, then president of BSA; Deputy President Thabo Mbeki; Jayendra Naidoo, Nedlac executive director; and David Moshapalo, secretary-general of Fabcos.

Jubilation at the election of the first president of the SAYC in August 1997. Nedlac supported the process of reconstituting the youth constituency in Nedlac, which culminated in the launch of the SAYC.

A sign that has become an all too familiar sight in South Africa. The Nedlac social partners regards job creation as a top priority and are throwing their weight behind the planning of a jobs summit later in 1998. The jobs summit will identify and agree on ways of creating more jobs in the economy.