WORKPLACE CHALLENGE - BACKGROUND

NEDLAC has commissioned a project aimed at promoting an improvement in competitiveness and improved productivity performance across a number of different industrial sectors of the SA economy.

Entitled The Workplace Challenge, the project is an extension of a dialogue which commenced in October 1996 and was conducted through a series of national workshops around the country which involved representatives from the three major stakeholders in industry development policy; business, labour and government.

Funds, have been provided for the project by the Department of Trade and Industry as one of its core supply side measures to industry.

The overall objective of the Workplace Challenge is to enhance the competitive capability of local firms and sectors to compete in the global market and ensure high investment and employment security with economic growth through:

• facilitating a constructive dialogue between the social partners on the improvement of economic performance and productivity at industry and shop floor levels.

• enhancing the capacity of stakeholders to participate and engage in this process by providing:

• training and guidelines on the issues and processes involved in workplace change

• examples of successful initiatives in this area both at firm and industry level

• Assisting firms, industries and regions to use the facilities presently available to them from various government departments, para-statals and industry level bodies which would enhance shop floor capabilities.

The project will operate at two levels of engagement with the social partners.

Sector level

A limited number of sectors will be identified to serve as role models for similar processes in other sectors. Within each nominated sector, the business and union industrial parties will be encouraged to engage in a dialogue through a series of conferences, workshops and negotiations and encouraged to develop sector-wide agreements which will guide the parties at a plant level on the process for transforming the workplace. It is envisaged that the scope of these Agreements will include a wide range of inter-related issues such as work organisation, working time, job design, multi-skilling, grading, productivity-based pay, training and career development, information sharing, workplace governance, job security and labour market adjustment, etc.

In the workshop and conference process of each sector process, participants will be given training and information on relevant issues affecting the competitive position of the sector and value chain and encouraged to identify critical issues which will improve and enhance the productive and competitive capability of each sector. Such issues include:

• the development of a world class strategic focus,

• the identification of best operating practices,

• the re-organisation of work and working practices.

 Workplace level

Running parallel to the sector process a number of pilot projects will be selected in specific workplaces in the sector to demonstrate how workplace change can be achieved in order to enhance the competitiveness of firms and provide benefits to workers.

At these pilot sites, a more intensive process of transformation will occur in which the parties will be assisted in making changes to work organisation and working practices in the production and service delivery process. Productivity performance and a range of other performance indicators like re-work, downtime, absenteeism, will be measured at the beginning and the end of each pilot study

Individual firms will be encouraged to apply for other forms of assistance from the DTI and other sources in building its capacity to become competitive. This combines the effect of supply side measures with shop floor best practice to yield ongoing improvements in performance within the context of a comprehensive workplace transformation strategy.

Firms identified as pilot sites will be required to share information with other firms in their sector as a condition of obtaining state-funded assistance in this project.

Assistance to the parties at both levels will be provided by teams of specialist experts drawn from the private and public sector.

In August 1999, the Nedlac Management Committee agreed to transfer the Workplace Challenge to the National Productivity Institute. The NPI's stronger competency in the area of workplace change meant that the Workplace Challenge was more suitably placed in this institution (www.npi.co.za). Nedlac coordinates research being conducted in this sector.