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 todayan overview of Nedlac's activities since the last time we were gathered togetherhere, sixteenth months ago.

This past year has been anuncertain one for Nedlac. There have been changes in leadership, both in Nedlac'sconstituencies and the secretariat. There has been a slight slackening of the pace ofactivities occasioned by the June elections. In the midst of this institutionaluncertainty there is a crisis of employment. A crisis that goes to the very heart ofNedlac and its work.

Before outlining Nedlac'sactivities a cautionary note must be sounded about how the effectiveness and contributionof an institution like Nedlac can be assessed. It could be assessed quantitatively bycounting 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'sperformance could also be measured in a more qualitative sense by considering theimproving relationship between the parties or evaluating the value added by Nedlacprocesses. A combination of both these approaches is needed in order to gain a fullpicture of just what it is that Nedlac has achieved.

Nedlac has enjoyed a number ofsignificant achievements in the period under review. But we must pause before wecongratulate ourselves on these successes, for much still remains to be done - thereis unfinished business. We need to view our achievements as evidence that we can tackledifficult issues and that we can build on our mutual interests to contribute towardsbuilding 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 liketo report back to the summit on how we have fared in meeting these goals:

The first objective we setourselves was "the creation of more, better and more secure jobs through thepreparations within Nedlac for the Presidential Jobs Summit". The Deputy President ina key note address to a special session of Nedlac's executive council a month agoargued that the Presidential Jobs Summit declaration was Nedlac's proudestachievement yet. The declaration contained 35 agreements. Perhaps of greater importancethan the number of agreements concluded was the process by which it made possible - aprocess that demonstrated extraordinary levels of commitment from parties and reflectedthe maturing of social dialogue in South Africa. Since the Jobs Summit, the focus inNedlac 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 JobsSummit.

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

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

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

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

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

The development andimplementation of procedures and protocols aimed at balancing the need for flexibilitywith the need for certainty about Nedlac processes was objective number seven. This is anongoing area of work for the institution but one on which there definitely has beenprogress, especially in the development of a financial code.

Working towards theimplementation of agreements reached in Nedlac and legislation negotiated in Nedlac wasanother priority. As an institution Nedlac's role in implementing agreements issomewhat limited, for it is the constituencies themselves, particularly government, whoare responsible for implementation. Nedlac's four chambers have played a role inmonitoring the implementation of agreements and legislation through regular briefingsessions.

A related aspect is that of thepopularisation of Nedlac agreements - another issue recently highlighted by theDeputy President. Nedlac has developed several communications tools, including aredesigned website and two regular news publications. In addition, an education projectwas run with SABC Radio to heighten awareness of economic issues. A weekly series wasbroadcast 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 hasbeen developed and implemented thus meeting the last objective on the list. A key elementof this is Fridge, a fund for research into industrial development growth and equity. Twostudies were completed: a study on government's role in promoting the use oftechnology in industry, and a review of the tax holiday scheme. A number of Fridge studiesare in progress, including studies on the tourism industry, pharmaceuticals, andsilicon-based technology.

Another major research projectundertaken last year was a survey of infrastructure delivery in kwaZulu-Natal, Gauteng andNorthern Province.

Before drawing up Nedlac'sreport-card on how it has met its ten objectives it is only fair to indicate that Nedlacalso 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 theseagreement-making successes, Nedlac's other activities in 1998/99 included:

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

The Workplace Challengeinitiative to encourage workers and managers to collaborate to identify and seek solutionsto the challenges facing their workplaces and sectors.

Nominating representatives to arange of statutory bodies like the new Commission for Employment Equity, the governingbody of the CCMA, and the National Skills Authority.

Participation in the adjudicationpanel for the Masakhane Campaign awards to communities that have taken the initiative topromote local economic development.

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

Nedlac appears to have becomesomething of a model for social dialogue internationally. Twenty-three delegations werehosted in the year under review. Visitors to Nedlac included the President of Chile, theItalian Minister of Trade and Industry, the Danish Chief Conciliator, and the MauritianSocial and Economic Council.

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

The economic context within whichthe various Nedlac activities I have outlined were undertaken has been marked byturbulence. 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 Africawas clearly affected by the crisis, growth in the tertiary sectors of the economy(particularly financial services and teleocmmunications) meant that we achieved a modestgrowth in GDP of 0.5% over the period.

The Nedlac parties haverecognised the severity of the employment crisis in the South African economy. This isborne out by the analysis in the Nedlac Annual Report. Official unemployment statisticsreveal that 2.2 million economically active people are unemployed. When discouragedworkseekers are taken into account, the number is even higher.

Existing inequalities have beenexacerbated by unemployment trends with Africans experiencing the largest increases inunemployment between 1994 and 1997. Inequalities continue to be a defining feature ofSouth African development, with African women experiencing the highest levels ofunemployment.

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

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

 Thank you.