Trade and Industry Chamber Activities

Completed work

European Union - South Africa Trade, Development and Cooperation Agreement

The Technical Sectoral Liaison Committee, a subcommittee of the chamber, was consulted by government officials involved in concluding the Trade, Development and Cooperation Agreement.

The Nedlac constituencies are involved in the implementation of aspects of the agreement. In particular, they have to strengthen relationships with the European Economic and Social Council. This is an important step in building Nedlac's international relationships.

Southern African Development Community Trade Protocol

Regional economic growth is central both to the long term sustainability of the region as well as South Africa's economic growth. The Southern African Development Community trade protocol involves the liberalisation of trade flows within the region and aims to encourage capital investment and increased infrastructure development.

Nedlac constituencies were consulted at various stages throughout the negotiation of the protocol and made a range of technical interventions to assist government negotiators.

The constituencies will be overseeing the implementation of the Memorandum of Understanding on the Standards, Quality Assurance, Accreditation and Metrology Infrastructure in SADC. This will be critical to the establishment of technical norms governing the health, safety and quality of products traded and produced within SADC, and facilitate international trade of SADC products.

Social Dialogue in Seattle

Nedlac's Executive Director and representatives from business, labour and the community joined the government delegation that attended the WTO meeting in Seattle in November 1999. The relationships and trust built between the constituencies in Nedlac was an important contributor to the high profile role that the South African delegation was able to play at the Seattle meeting.

While constituencies were involved in a briefing process before leaving for Seattle, the delegation felt that more preparation within Nedlac would have enabled them to have a stronger impact in the Seattle meetings. Nedlac is currently exploring how the national infrastructure for social dialogue can assist constituencies in their engagement with international institutions.

The Workplace Challenge

The Workplace Challenge project was established by Nedlac constituencies to address the impact of poor shopfloor relations on productivity in South Africa. The programme is an innovative attempt to encourage workers and managers to co-determine the manner in which change is implemented within their companies.

In June 1999, business, labour and government decided to move the management of the programme from Nedlac to the National Productivity Institute (NPI). This move was prompted by the recognition that the NPI was central to productivity enhancement programmes in South Africa. By placing the Workplace Challenge within the NPI, constituencies hope to build support for co-determined workplace change.

There are currently 5 sectors implementing the Workplace Challenge. Two sectors - the plastics conversion sector and the capital equipment sector - completed participation in the project during 1999 / 2000. Significant lessons about workplace change processes have been learnt. Reports on each process are available from the NPI website www.npi.co.za

Nedlac continues to coordinate research for the Workplace Challenge.

Ongoing Work

Jobs Summit Implementation: Made In South Africa campaign

The Presidential Jobs Summit agreed that Nedlac constituencies would launch a campaign to promote South African products and services that attain standards of good and responsible practice. The Department of Trade and Industry tabled a proposal in January 2000 and the task team has met three times to plan the implementation of this agreement.

Jobs Summit Implementation: Strengthening customs and excise

The South African Revenue Services has embarked on a programme to strengthen the functioning of customs and excise. The Customs Transformation Programme seeks to address three challenges:

• Reduce arrival-to-release time
• Stop smuggling/dumping/illegal imports
• Corruption and bribery

The chamber has established a task team to monitor the implementation of this programme.

Industrial Development Zones

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

A task team of the chamber met four times during the year under review to comment on government's proposals contained in a policy document "IDZs: A strategic global manufacturing platform". Business and Labour have recorded areas of reservation with the proposed policy principles and a report will be forwarded to the Minister of Labour during the coming year.

Fund for Research into Industrial Development Growth and Equity

The Fund for Research into Industrial Development Growth and Equity (Fridge) derives its budget from the Department of Trade and Industry and is administered by the Industrial Development Corporation.

Fridge studies aim to improve 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 constituencies inputs into their very foundations.

Fridge is currently completing studies on:

• Cluster development in the Tourism industry.
• Sustainable production.
• The South African Standards, Quality Assurance, Accreditation and Metrology Infrastructure.
• Pharmaceutical production.
• The cut flower industry.

The fund is the process of finalising research proposals on studies in the following areas:

• Marketing for the SA jewellery industry.
• The UN Climate Change Framework Agreement.
• Vulnerable sectors under the SA-EU Trade, Development and Co-operation Agreement
• Non-tariff barriers faced by South African exporters.
• Consumer Credit
• Product Safety and Liability

Preferential Procurement Policy Bill

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

Government tabled its interim 10-point plan strategy in February 1996. On 4 November 1999 the chamber noted that the Preferential Procurement Policy Framework Bill was being "fast-tracked" through Parliament with the aim of having it enacted within the three year constitutional window for legislation related to the redress of past imbalances. The chamber expressed its dissatisfaction with the lack of consultation on the bill. A process to discuss amendments to the bill is to be initiated in the current year.

Ongoing Monitoring

The chamber receives ongoing reports from government departments in order to ensure that implementation is monitored. In the year under review the chamber received briefings on:

• Industrial Incentives and Supply-Side measures.
• Anti-dumping and countervailing measures.
• The implementation of the Competition Act.
• The development of a National Tourism strategy.