Trade and Industry Chamber Activities

Overview

The Trade and Industry chamber has completed work on Competition Policy, the Social Plan, Environmental Management and Energy Policy.

In addition, the constituencies have continued to interact with the development of trade and industrial policy on an ongoing basis. The Teselico, Fridge and Workplace Challenge subcommittees continue to provide regular advice and information to government, enabling them to improve the formulation and implementation of trade and industry policy.

Completed Work

Competition Policy

Competition policy aims to promote the efficiency, adaptability and development of the economy by addressing anti-competitive behaviour and increasing ownership participation in the economy.

The Nedlac process started when the Minister of Trade and Industry tabled government's discussion document "Proposed guidelines for competition policy: a framework for competition, competitiveness and development" at a Trade and Industry Policy Session on 27 November 1997. The Trade and Industry Chamber convened a competition policy task team which met twenty times between January and May of 1998. The Nedlac process resulted in substantial agreement between the parties, although business and labour recorded some areas of reservation and disagreement with aspects of the Bill. The task team agreed on policy principles which determine restrictive practices, abuse of dominance and merger control. Agreement was also reached on the institutions which would implement a new Competition Law. The Nedlac agreement formed the basis of the new Competition Act.

Social Plan

A proposal on a Social Plan Act was tabled by labour on 12 October 1995. A joint task team composed of representatives from the Trade and Industry and Labour Market Chambers was convened to discuss the issue of the social plan. After two years of discussion between the parties, a framework agreement and implementation proposal were concluded as part of the Presidential Jobs Summit process.

The Social Plan aims to avoid job losses and employment decline wherever possible. In instances where large-scale job loss is unavoidable, the social plan provides for the active management of retrenchments to lessen the negative impact on individuals and local economies.

National Environmental Management Bill

Many South Africans live in environments that endanger their health and well-being. Government tabled the draft National Environmental Management Bill in July 1998. The draft Bill provides for the establishment of principles, institutions and procedures that will promote co-operative governance on issues affecting the environment.

The Trade and Industry chamber convened a task team to discuss the draft Bill. Five meetings were held during August 1998. The Nedlac report was forwarded in September 1998 to the Minister of Environment Affairs and Tourism. The report captured both areas of agreement between the parties and areas in which the parties had some reservations.

White Paper on Energy Policy

The South African Energy sector has a significant impact on a range of other sectors from housing to manufacturing. The importance of this sector was recognised by a range of stakeholders during the transition to democracy, resulting in a number of stakeholder forums developing positions on energy policy.

The Department of Minerals and Energy tabled the first Draft White Paper on Energy Policy on 16 July 1998. The White Paper aimed to consolidate the range of energy-related policy processes that had been initiated during the democratisation process.

Due to unforeseen delays, negotiations only started in early October and had to conclude by 30 October to meet government's timetable. The Nedlac parties were unable to conclude negotiations on the Draft White Paper within that timeframe. The Nedlac report captured the extent of agreement and the reservations that were recorded by the parties and was forwarded to the Minister of Minerals and Energy Affairs in December 1998.

The Nedlac parties will interact with any legislation that emanates from the White Paper.

European Community Trade Development and Co-operation Agreement

In April 1994, the European Community offered assistance to South Africa in the form of an aid package and a limited General System of Preferences (GSP) package with some trade concessions. They further proposed negotiations which would lead to a comprehensive trade agreement with South Africa. Subsequent developments resulted in South Africa entering negotiations on the establishment of a Trade Development and Co-operation Agreement with the European Community.

In the course of the negotiations government representatives reported regularly to the Technical Sectoral Liaison Committee (Teselico). Nedlac's constituencies provided input on the implications of the trade deal for specific sectors, thereby building a comprehensive picture of the potential costs and benefits that would emerge from pursuing different options. This process of commentary and evaluation took place on an ongoing basis, thereby informing both general principles as well as specific issues in the negotiations.

Ongoing Work

Industrial Development Zones

Advanced infrastructure, high skill levels, simplified administrative procedures and incentive measures are critical variables in increasing levels of foreign direct investment and employment. Industrial Development Zones (IDZs) provide these services in a defined geographical area, usually close to a port, to facilitate investment and economic and employment growth.

A workshop was held on IDZs in June 1998. This was followed by regular reports from government to the Trade and Industry Chamber on the progress in establishing IDZs. A task team of the Trade and Industry Chamber is being convened to discuss policy for the establishment of IDZs.

Nuclear Energy Bills

Government tabled the Nuclear Energy and the Nuclear Safety Bills to the Trade and Industry Chamber of Nedlac in December 1998 and January 1999 respectively. The constituencies felt that insufficient time had been allowed for thorough discussion of the Bills. Government tabled the Bills at Parliament, with the understanding that constituencies could make their inputs during the Parliamentary hearings. The Portfolio Committee declined to consider them without there having been prior discussions at Nedlac.

Procurement Policy

Procurement Policy is an important instrument with which government can influence the development of the economy. In particular, procurement policy can be used to promote skills development, labour standards, conformity to regulation and the emergence of new businesses.

Government is in the process of finalising the white paper on procurement policy. The White Paper will be tabled at Nedlac for discussion once it has been completed.

SADC Trade Protocol

The countries of the Southern African Development Community are currently negotiating the establishment of a regional free trade agreement (FTA). It is envisaged that the FTA will bolster regional development.

Government negotiators interact regularly with business and labour members of the Technical Sectoral Liaison Committee. Nedlac has also convened meetings with business and labour representatives from specific sectors affected by the FTA. This has provided government with an opportunity to obtain detailed information on the potential impact of the FTA on key economic sectors.

Workplace Challenge

Nedlac's Trade and Industry Chamber, in collaboration with the National Productivity Institute, launched the Workplace Challenge in 1996. Through a series of provincial workshops, the first phase of the Workplace Challenge initiated dialogue between business and labour on issues of productivity and employment creation.

The first phase culminated with a recognition by the social partners that there was a need to use principles of social dialogue and consultation as mechanisms for improving workplace performance. Accordingly, Nedlac, with funding from the Department of Trade and Industry (DTI), launched the second phase of the Workplace Challenge in 1997.

The Workplace Challenge encourages workers and managers to collaboratively identify and seek solutions to the challenges that face their factories and sectors.

The programme is being implemented in 17 factories in three different sectors - Plastics, Petrochemicals and Synfibre; Capital Equipment and the footwear sector in Pietermaritzburg, KwaZulu-Natal.

The companies are organised into tripartite sector committees that meet on a monthly basis to find solutions to the challenges faced by the factories in their sector. In addition, they facilitate bi-monthly workshops at which managers, workers and DTI officials discuss the implementation of workplace change. These workshops have focussed on:

• Sharing experiences of change in factories.
• Managing workplace change.
• Implementation of workplace change.
• Measuring the impact of change.
• Communication.

Through these processes of dialogue, the participants in the Workplace Challenge have been able to advance the implementation of change in their factories and sectors.

To-date the project has provided opportunities for participants to understand the processes by which workplaces are transformed. Collaboration with academics has ensured that the learning generated by this project is captured in a series of research reports and manuals.

Publications on the first and second phases of the Workplace Challenge are available from the Nedlac secretariat.

Fund for Research into Industrial Development Growth and Equity

The Japanese Grant Fund funded research aimed at improving the performance of the South African economy. Following the depletion of that fund, the Nedlac Executive Council undertook to establish a fund for research into industrial development, growth and equity - Fridge. Fridge derives its budget from the Department of Trade and Industry and is administered by the Industrial Development Corporation.

Fridge studies aim at improving the functioning of the South African economy. A counterpart group composed of government, business and labour manages each study. This structure facilitates the involvement of the Nedlac constituencies. Their involvement ensures that the collective skills, knowledge and needs of the Nedlac parties are used in the research process. This inclusive, dialogue-based approach to research helps ensure that the policy recommendations that follow from the research are strengthened by Nedlac's inputs into their very foundations.

The following studies have recently been completed:

• Government's role in promoting the use of technology in industry.
• A review of the tax holiday scheme.

The Fridge subcommittee is currently undertaking the following studies:

• Tourism Collaborative Initiative.
• Sustainable Production Study.
• Pharmaceutical Study.
• Silicon Based High Technology Cluster Study.

A full list of the research completed by the JGF and Fridge is available on the Nedlac website. Copies can be ordered from the Nedlac secretariat.

Delegates to the Trade and Industry Chamber (including alternates)

Labour

H. Mkhize (convenor)
M. Bennett
Z. Cindi
P. Myburgh
H. Campher
K. Ndaba

Government

T. Mhlongo (convenor)
A. Hirsch
J.A. Davies
D. Jordaan
P.E. Kotze
M.L. Molepo
G. Van Dijk

Business

S. Naude (convenor 1998)
A. Lamprecht (convenor March 1999)
R. Baxter
R. Hlongwane
L. Lotter
M. McDonald
C. Mtshali
H. van der Merwe
B. van Rensburg
B. Robertson

SUBCOMMITTEES and taskteams

In addition to the regular chamber delegates, constituencies often have additional representatives on subcommittees and taskteams. These representatives provide specialist skills. These names do not include representatives who served on subcommittees and taskteams, but who also served on other Nedlac structures.

Labour

R. Naidoo
D. Alexander
M.Tshehla
M. Ryan
B. ka Maphikela
A. Wôcke
C. Horten
S. Miller
K. Masemola
M. Dlamini
J. Nkosi
B. Chidi
T. van Meelis
M. Samela
O. Galeni
A. Venter
M. Robinson
R. Abrahams
M. Ngwenda
C. Mofokeng
K. Phillip
M. Oliphant
T. Padu
L. Veotte
L. James
S. Jonas
J. Mafereka
M. Makhalemele
W. Mboniso
S. Nhlapho
K. Creamer
F. Tregenna

Business

P. Drodskie
T. Mokoena
D. Wigley
B. Shipman
V. Mehana
L. Kropman
N. Smythe
J. Manyi
A. Dippenaar
D. Weston
P. Silo
D. Botha
B. Brink
L. da Piedade
J. Pienaar
E. Maske
P. Smith
J. Killani
B. de Klerk
L. Partridge
H. Swart
E. Lai-King
T. Lategan
M. Kerr-Peterson
J. Richards
P. van Niekerk
D. Carson
A. Phasha
V. Esselaar
L. la Grange
A. Dippenaar
P. Basson
J. Becker
C. Mclelland
L.van Huyssteen
S. Malherbe
M. Spicer
A. du Plessis
O. Bruyns
J. Kilani
N. Opperman
S. Livingstone

Government

L. Mbabane
M. Sithole
G. Mhone
T. Chauke
S. Morotoba
L. Falkov
A. van Schoor
I. Tlase
N. Ramakoae
A. Donaldson
S. Hanival
C. Sellars
D. van der Merwe
P. Bester
D. Jordaan
R.J. Otto
F. Ismail
G. Krasnik
M. Mayer
J. Mosidi
M. Nkuhlu
A. September
B. Sibisi
W. Smalberger
J. Potgieter
F. Truter
M. Postma
L. Platsky
T. Abrahamse
H. Harvey
T. Demana
M. Visagie
M. Mitchelson
W. Scott
E. Kruger
H. Slabbert
D. van der Walt
T. Mketi
A. Schoor
I. Tlhase
N. Ramakoae
J. de Ridder
N. Sowazi
R. Kruger
L. Gwagwa
B. Khojwayo
M. Fatyela-Lindi
C-L. Seafield
W. Barnard
R. Crompton
S. Mokoena
G. Sibiya
S. Thobejane
D. Lewis
A. Ruiters
M. Simelane
Z. van Heerden
N. Makhetla
E. Africa
C. Swart
H. Mthimunye
I. Coetzee
H. Smith
R. Stein
T. Sokutu

Community

D. Williams
T. Mungulwa
M.Toni
G. Mokate
M. Mogudi
M. Fikizolo
N. Mashapa
R. Kachingwe
M. Naidoo
N. Sokutu