Labour Market Chamber Activities

Overview

The work of the Labour Market Chamber continues to focus on the transformation of the South African labour market. During 1998, constituencies continued to work on the implementation of the Labour Relations Act and the Basic Conditions of Employment Act. In particular, the chamber concluded a number of codes of good practice that offer guidance in the implementation of the Acts.

Negotiations were completed on the Skills Development Bill and the Employment Equity Bill. The negotiations further entrenched Nedlac's status as a unique institution of social dialogue by drawing community representation into both negotiation processes. These pieces of legislation set in place processes and structures to improve the skill levels and equity in South African workplaces.

Finally 1998 saw an increasing southern African focus in the work of the chamber, with constituencies developing positions that government would table in the SADC Employment and Labour sector.

COMPLETED WORK

Skills Development

South Africa faces an extreme skill shortage that both constrains economic growth and contributes to high levels of inequality in the labour market. The Skills Development Act and Skills Development Levy Act aim to address this problem through the creation of institutional frameworks and a financing mechanism which enable effective and targeted training programmes to be implemented.

Government tabled the Green Paper in Nedlac in early 1997. After receiving preliminary comments from organised business and labour, government tabled the Skills Development Bill. In the course of negotiations, Nedlac constituencies commissioned research and undertook study tours in order to develop a common position on mechanisms for the financing of training.

After fourteen negotiation sessions, the Nedlac negotiations concluded in May 1998, when a report was forwarded to the Minister of Labour for introduction into Parliament.

Employment Equity

In January 1998, Government tabled the Employment Equity Bill in Nedlac. The negotiations were characterised by constituency agreement on the principle of employment equity. The Nedlac parties met nine times to agree the mechanisms necessary for the implementation of employment equity. Negotiations were concluded in April 1998 and Nedlac forwarded a final report to the Minister of Labour, for introduction into Parliament.

The Employment Equity Act aims to encourage employers to take active measures to increase equity within the workplace. This legislation is a central tool in overcoming apartheid inequalities that have divided South Africa's workplaces.

Implementation of the Labour Relations Act

During 1998, Nedlac continued to do work on enhancing the implementation of the Labour Relations Act.

Amendments to the Act

Nedlac parties convened a subcommittee in June 1998 to consider a draft Labour Relations Amendment Bill. The Bill proposed a number of amendments to the Act to improve its implementation. The constituencies agreed that only amendments that were urgent, which related to the application of the Labour Relations Act and on which there was full consensus would be incorporated into the Bill. The Nedlac report was forwarded to the Minister of Labour in July 1998.

Codes of Good Practice

In addition to considering the Labour Relations Amendment Bill, Nedlac parties continued to give effect to Section 203 of the Labour Relations Act. Section 203 allows Nedlac to draft codes of practice that assist in the interpretation and application of the Act. During 1998, Nedlac concluded a Code of Good Practice on the Handling of Sexual Harassment Cases. This code encourages and promotes the development and implementation of policies and procedures that will lead to the creation of workplaces that are free of sexual harassment. In doing this, the code clearly defines the nature of sexual harassment as well as establishes clear procedures for the handling of sexual harassment cases. Nedlac has now issued three codes of good practice that assist employers and employees, the Labour Court and the Commission for Conciliation, Mediation and Arbitration in the application and interpretation of the LRA. The others are:

• Code of Good Practice on Picketing.
• Code of Good Practice on Dismissals based on Operational Requirements.

Implementation of the Basic Conditions of Employment Act

Codes

The Basic Conditions of Employment Act requires the Minister of Labour to consult Nedlac to finalise codes that may be adopted under the auspices of the Act.

Government tabled two codes in January 1998 - the Code of Good Practice on the Protection of Pregnant and Breastfeeding Employees and the Code of Good Practice on the Arrangement of Working Time.

The Code of Good Practice on the Protection of Pregnant and Breastfeeding Employees provides guidelines for employers and employees to ensure that women's health is protected against potential hazards in the work environment during pregnancy, after the birth of a child and while breastfeeding. In particular this code:

• Provides clarity on the legal requirements relevant to the protection of the health and safety of pregnant and breastfeeding employees;
• Details the principal physical, ergonomic, chemical and biological hazards to the health and safety of pregnant and breastfeeding employees and recommends steps to prevent or control these risks.

After receiving written submissions from business and labour, government published the code in November 1998.

The Code of Good Practice on the Arrangement of Working Time provides information and guidelines to employers and employees concerning the arrangement of working time and the impact of working time on the health, safety and family responsibilities of employees. After receiving input from business and labour, government published the code in September 1998.

Amendments to Unemployment Insurance Fund Act

In September 1998, government tabled a draft Unemployment Insurance Amendment Bill to give effect to the maternity leave provisions in the BCEA. Following two meetings, government revised the draft bill and the Nedlac report was finalised on 23 November and was forwarded to the Minister of Labour for introduction into Parliament.

Regulations

In October Nedlac also considered the formulation of regulations to assist in the implementation of the Basic Conditions of Employment Act. This required the parties to consider and formulate the documentation that would be used in the implementation and monitoring of the Act. The regulations were finalised at the October Management Committee meeting of Nedlac and were subsequently published by government.

ILO Conventions

The conventions of the International Labour Organisation promote the improvement of working people's lives throughout the world. Once a country has ratified an ILO convention, the government is obligated to ensure that its national legislation is in accordance with the principles of the conventions.

Nedlac constituencies support this principle and accordingly recommended that Parliament ratify six ILO conventions during 1998/9. This brings to thirteen the number of conventions that Nedlac has recommended that Parliament ratify. The six conventions are:

• Convention 100 on equal remuneration for men and women for work of equal value.
• Convention 138 on the minimum age of employment.
• Convention 144 on tripartite consultation.
• Convention 176 on safety and health in mines
• Convention 155 on occupational health and safety
• Convention 174 on the prevention of major industrial accidents.

In addition, the Nedlac Executive Council of 5 March 1999 recommended that recommendation 146 which supplements Convention 138 on minimum age be ratified by the South African government.

Parliament's ratification of Conventions 100 and 138 means that South Africa has ratified all 7 of the core conventions of the ILO.

The Labour Market Chamber has established a subcommittee to consider recommending the ratification of further conventions. The subcommittee is currently considering Convention 171 concerning nightwork and the Protocol to Nightwork (women) Convention.

Southern African Development Community

At Nedlac's 1998 Annual Summit government, business, community and labour acknowledged the historical linkages between South Africa and the rest of the region as well as the increasing importance of regional markets and producers for the South African economy. Accordingly, Nedlac has started to undertake work that has Southern Africa as its focal point.

The SADC Employment and Labour Sector requires that member states engage in tripartite consultation in developing their proposals. Accordingly, the South African government has tabled a range of issues before the Labour Market Chamber in order to obtain the inputs of business and labour. Following consultation in Nedlac, government tabled the South African position at the April meeting of the SADC Employment and Labour Sector, where the final agreement was concluded with the other SADC countries.

Nedlac has completed work on:

• Terms of Reference for the SADC Employment and Labour Sector.
• Social Charter of Fundamental Rights.
• Draft Declaration on Productivity.
• Draft Code on the Safe Use of Chemicals in the SADC region.

The SADC codes require that member countries alter their national legislation to give effect to the principles contained in the codes. Accordingly, Nedlac's work in this area is an important contribution to establishing the governance structures and mechanisms necessary for successful and sustainable regional integration.

ONGOING WORK

Sector Demarcation for Collective Bargaining

The Labour Relations Act Section 29(8) requires Nedlac to consider applications to register bargaining and statutory councils and to demarcate the appropriate sector and area in which that council should be registered.

A standing committee has been established to consider all demarcation applications. The standing committee is empowered to liaise directly with the parties and objectors to an application, to enable it to make a recommendation to the chamber. This committee is currently considering criteria and principles to guide the consideration of demarcation applications.

During the period 1 April 1998 to 31 March 1999, Nedlac considered nine applications.

The following five applications were agreed:

• Application for the demarcation of the building industry bargaining council (Cape of Good Hope).
• Application for the demarcation of the South African carpet manufacturing bargaining council.
• Application for the amalgamation of the national bargaining council for the clothing manufacturing industry.
• Application for the amalgamation of the national bargaining council for the electrical industry of South Africa.
• Application for the demarcation of the bargaining council for the meat trade, Gauteng.

The following two applications were agreed with amendments:

• Application for the registration of a bargaining council for the South African road passenger industry.
• Application for the demarcation of the bargaining council for the furniture manufacturing industry of the Eastern Cape

The following two applications were not agreed:

• Application for the registration of a statutory council for the printing, newspaper and packaging industry of South Africa.
• Application for the demarcation of the national bargaining council for the chemical industry.

Amendment to Section 154 of the LRA

Section 154 of the LRA establishes the conditions for the tenure, remuneration, terms and conditions of appointment of Labour Court judges. The Nedlac parties are currently considering the status of judges appointed to the Labour Court.

Nominations to Statutory bodies

A number of statutory bodies provide for nominations from the constituencies in Nedlac in order to ensure that civil society is adequately represented in their governing structures. Nedlac is required to co-ordinate these nominations. In order to ensure the timeous nomination of representatives to these bodies, the Executive Council agreed on a protocol of administrative procedures that the secretariat should follow.

Statutory bodies for which Nedlac has co-ordinated nominations include:

• Unemployment Insurance Fund Board
• Employment Conditions Commission
• National Skills Authority
• Commission for Employment Equity
• Commission for Conciliation, Mediation and Arbitration
• Essential Services Committee
• Compensation Board
• Advisory Council for Occupational Health and Safety

Delegates to the Labour Market Chamber (including alternates)

Business

V. van Vuuren (convenor)
F. Barker
B. Angus
F. Ernst
G. Bezuidenhout
A. Tshalata
K. Kleynhans
C. Sykes
J. Dickman
C. de Kock
P. Mongalo

Labour

M. Buthelezi (convenor)
L. Grobler
J. Maqhekeni
P. Dantjie
E.Taukobong
S. Mlambo

Government

L. Kettledas (convenor)
L. Seftel
A. Bird
S. Mkhonto
F. Salie
J. van der Hoven