OVERVIEW OF NEDLAC'S ACTIVITIES 1998/99

Report to the fourth annual Nedlac Summit

Honourable Deputy President, Ministers, distinguished delegates and guests, it is my privilege to present to you today an overview of Nedlac's activities since the last time we were gathered together here, sixteenth months ago.

This past year has been an uncertain one for Nedlac. There have been changes in leadership, both in Nedlac's constituencies and the secretariat. There has been a slight slackening of the pace of activities occasioned by the June elections. In the midst of this institutional uncertainty there is a crisis of employment. A crisis that goes to the very heart of Nedlac and its work.

Before outlining Nedlac's activities a cautionary note must be sounded about how the effectiveness and contribution of an institution like Nedlac can be assessed. It could be assessed quantitatively by counting the number of meetings held - over 300, the number of agreements reached - over 35, or the amount of public funds spent - R6.5 million. Nedlac's performance could also be measured in a more qualitative sense by considering the improving relationship between the parties or evaluating the value added by Nedlac processes. A combination of both these approaches is needed in order to gain a full picture of just what it is that Nedlac has achieved.

Nedlac has enjoyed a number of significant achievements in the period under review. But we must pause before we congratulate ourselves on these successes, for much still remains to be done - there is unfinished business. We need to view our achievements as evidence that we can tackle difficult issues and that we can build on our mutual interests to contribute towards building a better life for all.

Following the 1998 Nedlac Summit, ten goals for the year ahead were agreed upon in a post-summit declaration. I would like to report back to the summit on how we have fared in meeting these goals:

The first objective we set ourselves was "the creation of more, better and more secure jobs through the preparations within Nedlac for the Presidential Jobs Summit". The Deputy President in a key note address to a special session of Nedlac's executive council a month ago argued that the Presidential Jobs Summit declaration was Nedlac's proudest achievement yet. The declaration contained 35 agreements. Perhaps of greater importance than the number of agreements concluded was the process by which it made possible - a process that demonstrated extraordinary levels of commitment from parties and reflected the maturing of social dialogue in South Africa. Since the Jobs Summit, the focus in Nedlac has turned to monitoring the implementation of the various Jobs Summit agreements, as well as tackling those critical issues that remained incomplete in the rush to the Jobs Summit.

The second objective set was the development and implementation of a "… work programme to meet the challenges of southern African regional integration." Despite the considerable resources of time and energy that were invested in the Jobs Summit process, Nedlac was able to initiate a discussion on the challenges of southern African integration with a seminar on the subject in October 1998. SADC issues have also been deal with by Nedlac's Labour Market Chamber, including the development of a South African position on the social charter on fundamental rights, a draft declaration on productivity, and the role of SADC's employment and labour sector. The SADC Free Trade Protocol has been the subject of attention in the Trade and Industry Chamber's subcommittee on trade issues.

Concluding an agreement on a social plan to address large-scale retrenchments was the third objective and one that was achieved as part of the Jobs Summit negotiations.

Agreements on ways to improve access to housing by low-income groups were also finalised during the Jobs Summit negotiations in fulfillment of another objective set after last year's Nedlac Summit.

The fifth goal was the development of a set of criteria to guide the demarcation of economic sectors for the purposes of collective bargaining. During the year under review, nine applications for the demarcation of sectors were considered by the Labour Market Chamber's standing committee on demarcation. Agreement was reached on seven of these. The standing committee is developing considerable expertise on demarcation issues, as yet, however, a set of criteria to guide their deliberations is outstanding.

The next priority issue agreed upon was the facilitation of a constructive dialogue on fiscal and monetary policy issues. Unfortunately, the Public Finance and Monetary Policy Chamber represents an area of weakness in Nedlac. Although, the Jobs Summit preparations initiated such an engagement this has not translated into an operational work programme for the chamber.

The development and implementation of procedures and protocols aimed at balancing the need for flexibility with the need for certainty about Nedlac processes was objective number seven. This is an ongoing area of work for the institution but one on which there definitely has been progress, especially in the development of a financial code.

Working towards the implementation of agreements reached in Nedlac and legislation negotiated in Nedlac was another priority. As an institution Nedlac's role in implementing agreements is somewhat limited, for it is the constituencies themselves, particularly government, who are responsible for implementation. Nedlac's four chambers have played a role in monitoring the implementation of agreements and legislation through regular briefing sessions.

A related aspect is that of the popularisation of Nedlac agreements - another issue recently highlighted by the Deputy President. Nedlac has developed several communications tools, including a redesigned website and two regular news publications. In addition, an education project was run with SABC Radio to heighten awareness of economic issues. A weekly series was broadcast on ten radio stations covering topics on Nedlac, as well as tax, productivity, and labour laws. Thus, the ninth objective agreed at the 1998 Summit has been met.

A research work programme has been developed and implemented thus meeting the last objective on the list. A key element of this is Fridge, a fund for research into industrial development growth and equity. Two studies were completed: a study on government's role in promoting the use of technology in industry, and a review of the tax holiday scheme. A number of Fridge studies are in progress, including studies on the tourism industry, pharmaceuticals, and silicon-based technology.

Another major research project undertaken last year was a survey of infrastructure delivery in kwaZulu-Natal, Gauteng and Northern Province.

Before drawing up Nedlac's report-card on how it has met its ten objectives it is only fair to indicate that Nedlac also concluded agreements on a range of other important matters, including:

• The Skills Development Act
• The Employment Equity Act.
• Competition Policy.
• Recommending the ratification of six International Labour Organisation conventions, including conventions on tripartite consultation, mine health and safety, occupational health and safety, and equal pay for work of equal value.
• Amendments to the Labour Relations Act.
• Amendments to the Unemployment Insurance Act.
• The National Environmental Management Bill.

In addition to these agreement-making successes, Nedlac's other activities in 1998/99 included:

Technical support for the government trade negotiators with the European Union and SADC.

The Workplace Challenge initiative to encourage workers and managers to collaborate to identify and seek solutions to the challenges facing their workplaces and sectors.

Nominating representatives to a range of statutory bodies like the new Commission for Employment Equity, the governing body of the CCMA, and the National Skills Authority.

Participation in the adjudication panel for the Masakhane Campaign awards to communities that have taken the initiative to promote local economic development.

Nedlac has a statutory dispute resolution function in terms of section 77 of the Labour Relations Act. Six notices of possible protest action were dealt with by Nedlac. In all but one instance the matters giving rise to the notice was either resolved in Nedlac, or a process was initiated in which the matter could be resolved by the affected parties themselves.

Nedlac appears to have become something of a model for social dialogue internationally. Twenty-three delegations were hosted in the year under review. Visitors to Nedlac included the President of Chile, the Italian Minister of Trade and Industry, the Danish Chief Conciliator, and the Mauritian Social and Economic Council.

On the basis of this overview, what do we think Nedlac's report-card should read: "Worked hard, but could do more. Has untapped potential!"

The economic context within which the various Nedlac activities I have outlined were undertaken has been marked by turbulence. A global financial crisis, which began in the economies of South East Asia, had a devastating effect on economic growth in developing countries. Whilst South Africa was clearly affected by the crisis, growth in the tertiary sectors of the economy (particularly financial services and teleocmmunications) meant that we achieved a modest growth in GDP of 0.5% over the period.

The Nedlac parties have recognised the severity of the employment crisis in the South African economy. This is borne out by the analysis in the Nedlac Annual Report. Official unemployment statistics reveal that 2.2 million economically active people are unemployed. When discouraged workseekers are taken into account, the number is even higher.

Existing inequalities have been exacerbated by unemployment trends with Africans experiencing the largest increases in unemployment between 1994 and 1997. Inequalities continue to be a defining feature of South African development, with African women experiencing the highest levels of unemployment.

The challenge revealed in the Nedlac Annual Report is how to ensure that economic adjustment and growth is matched with increasing equity in South Africa. One without the other will not be sufficient.

In conclusion, I would like to extend a vote of gratitude to all the many individuals - those in the audience and those who could not be with us today - who are responsible for the achievements of Nedlac that I have outlined this morning. I would like to urge all of you to remember to take your vitamins and tonics because there is still much more work to be done.

Thank you.