Overview of Nedlac

Substantial post-summit work is envisaged. This will include implementation and thefurther 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 byprogress made during the preparations. No date has been set for the summit yet.

SUMMIT

• Gives feedback and receives input from a broad range of organisations and individuals
• chaired by the president or deputy president
• 400 participants
• convened annually
• executive council
• Highest decision-making structure
• Meets on a quarterly basis to consider reports on the general progress of Nedlac and on the work of the chambers
• Considers recommendations from the chambers for agreement-making
• From the beginning of 1997, each Executive Council meeting holds a special focus session on a strategic area of consideration management committee
• Plays strategic role in guiding the work of Nedlac
• Meets monthly to oversee and coordinate the work of Nedlac and, in particular, its chambers
• The engine-room of the institution, where the cut and thrust of negotiation takes place
• Meet at least once a month
• In addition to formal meetings, various ad hoc subcommittees are established when necessary

WHAT IS NEDLAC?

The formation of Nedlac

The National Economic Development and Labour Council (Nedlac) was created by an Act ofParliament in September 1994 and was launched on 18 February 1995. Its establishmentheralded the start of a new period of inclusive decision-making and consensus-seeking inthe economic and social arena. Since then Nedlac has become the principal vehicle forsocial dialogue in the country.

Nedlac's origins lie in the struggle against apartheid, against unilateraldecision-making, and in calls from all sectors of society for decisions to be taken in amore inclusive and transparent manner. It has also emerged from a recognition of theimportance of seeking consensus on major economic, social and development policies toensure their success.

Nedlac draws on international experience in tripartite decision-making, as well as onthe experience of its predecessors, the National Economic Forum (NEF) and the NationalManpower Commission. But it also has unique features aimed at meeting the particular needsof the South African situation: it includes not only the traditional partners-government,business and labour-but also organisations that represent community interests in ourcountry.

It is a representative body where the parties to it seek to reach agreement primarilythrough negotiation and discussion based on proper mandates. Besides agreement-making,Nedlac has a decisive role in building a culture of democratic participation and socialdialogue in society.

Scope of activity

The Nedlac Act, passed with unanimous support in Parliament in 1994, defines the scopeof Nedlac's activities.

The Act requires Nedlac to:

• Strive to promote the goals of economic growth, participation in economic decision-making, and social equity.
• Seek to reach consensus and conclude agreements pertaining to social and economic policy.
• Consider all proposed labour legislation relating to labour market policy before it is introduced in Parliament.
• Consider all significant changes to social and economic policy before they are implemented or introduced in Parliament.
• Encourage and promote the formulation of coordinated policy on social and economic matters.

To give effect to these requirements, Nedlac's activities are broader thanagreement-making and formal consensus-seeking. It includes information-sharing, research,workshops and seminars, and dispute resolution.

The Nedlac structure and operations

Nedlac's constituencies

It is Nedlac's four constituencies that face the challenge of making the institutionwork by building a culture of dialogue and, where appropriate and necessary, producingagreements which can be acted on to improve the country's performance and the quality oflife of its citizens.

This requires that representatives obtain realistic mandates, negotiate in the bestinterests of their own constituencies, and can bind their constituencies to follow throughon agreements reached.

During Nedlac's first three years, the capacity of all parties has grown andconsolidated. Constituencies have developed structured mechanisms to enhance their inputsinto Nedlac, including constituency workshops and seminars, and regular formal caucuses.In the case of labour and community, coordinating offices were also set up to manage theirinvolvement in Nedlac.

Government, organised business and organised labour are represented in equal numbers inall Nedlac's structures. Organised business and labour decide themselves how their seatsare allocated among the various unions and employer organisations. This is done accordingto criteria and procedures which have been formulated by organised business and labour.These documents have been tabled for noting and are publicly available. Organisationsrepresenting community interests are represented in the Development Chamber, ManagementCommittee and Executive Council. Each constituency decides on its own representatives andalternates, and how they are allocated to the chambers and other Nedlac structures.Constituencies can recall their representatives.The chairing of Nedlac structures rotatesamong its four constituencies, mostly on a quarterly basis.The government delegation inNedlac includes ministers, deputy ministers, directors-general and senior officials fromseveral ministries and departments, including Labour, Finance, Trade and Industry andPublic Works. The Minister of Labour coordinates government's involvement in Nedlac.

The organised business constituency in Nedlac is represented by Business South Africa(BSA) and the National African Federated Chamber of Commerce (Nafcoc).

Organised labour in Nedlac is represented by the Congress of South African Trade Unions(Cosatu), the National Council of Trade Unions (Nactu), and the Federation of Unions ofSouth Africa (Fedusa).

Immediately after the launch of Nedlac, a careful selection process took place toconstitute the community constituency. Organisations representing the community had tomeet the criteria stipulated in the Nedlac Act, namely, that they represent a significantcommunity interest on a national basis, have a direct interest in reconstruction anddevelopment, and are constituted democratically.

The community constituency in Nedlac currently comprises the Women's National Coalition(WNC), which represents women; the National Rural Development Forum (NRDF), whichrepresents rural communities; the South African Federal Council on Disability, whichrepresents disabled people; the South African National Civic Organisation (Sanco), whichrepresents the civics; and the South African Youth Council (SAYC), which represents theyouth.

Keeping the Nedlac process dynamic

From time to time, the Management Committee reviews Nedlac's agenda. Over the past twoyears the drafting committee has been responsible for proposing adjustments to the Nedlacprocess.

Two protocols were close to finalisation at the time of writing: the tabling of Nedlacreports in Parliament and the nomination of representatives to statutory bodies.

Attention is also being given to how Nedlac should interact with the broaderpolicy-making process in government, specifically the process to be followed with respectto green papers, white papers and bills. Several case studies of Nedlac processes arebeing developed in order to table recommendations to the Executive Council.

Funding

Nedlac's activities are funded by government through the Department of Labour's budget.

Secretariat

The activities of the council are managed and serviced by the secretariat.

PUBLIC FINANCE AND MONETARY POLICY

SECRETARIAT

SUPPORTS ALL NEDLAC STRUCTURES, PROCESSES AND NEGOTIATIONS

19 STAFF MEMBERS

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