ADDRESS BY THE MINISTER OF LABOUR, MEMBATHISI MDLADLANA

9 September 2000

Deputy President
Cabinet Colleagues
Leaders of organised labour, organised business and the community
NEDLAC Executive Director
Guests and friends

On this spring day, we should be outdoors, celebrating nature with our families and friends. And yet we are here, because we are all concerned about the well being of our country. I thank you all for your presence here today and hope that this event will serve as a forum for us to reflect on the past activities of NEDLAC and chart a way forward for social partnership in general and NEDLAC in particular.

I read the messages of the overall convenors of NEDLAC in the Annual Report. Let me share with you some of the things that they said.

Raymond Parsons, business convenor said: "At last year's Summit, Deputy President Zuma challenged Nedlac to develop a "tough employment accord". This is a challenge that the Nedlac leadership has not yet met, despite the fact that it is recognised that sustainable employment strategies will require a concerted effort by all stakeholders."

My Director General, Adv. Rams Ramashia, had this to say: "Last year the Deputy President challenged all of us as stakeholders to secure a "tough employment accord"...this challenge cannot be allowed to fall on deaf ears if we are to realise our objectives. The inherent contradictions of social partnership which sometimes burst into momentary conflicts should not detract us from the essence of our relationship -promotion of the goals of economic growth, participation in economic decision making and social equity.'

Ebrahim Patel, labour convenor said: "The past year has demonstrated the need to reach agreement on economic policy and jobs." Subsequently, COSATU has called for an economic CODESA.

Deputy President, we are all saying the same thing. I hope that my colleagues in the organised business, labour and the community constituencies will take on board the contribution you have already made this morning in respect of how we can take the notion of an economic accord further.

In my input today, I would want to reflect on what role NEDLAC can play and what role do we see for the other tripartite forums in this process.

As is emphasised in the Annual Report, NEDLAC is South Africa's pre-eminent institution for social dialogue. Over the last six years it has brought the voice of organised labour, business and the community constituency to bear in all the critical social and economic decisions that our new democracy had to make.

But, I think all the social partners are beginning to say: if we stay the same, we don't grow and ultimately we stagnate and decline. NEDLAC therefore has to change with the times.

If it is going to continue to make the impact that it needs to, it needs to do something in addition to facilitating the processes that are required in respect of proposed Bills, Codes, regulations and nominations to statutory bodies.

NEDLAC needs to focus on assisting us to secure the set of national accords that the Deputy President spoke about. It needs to focus on what it can do well and on what it can do best and most appropriately. It needs to focus on areas where it can make a strategic and unique impact.

Unlike, other bodies such as the Millennium Labour Council, NEDLAC has been created by statute and is given a role in many other statutes. It is the only place where final and binding agreements can be reached. Together with Parliament, it provides a structured way in which key constituencies can reach agreements on legislative change. Government comes to NEDLAC with policies and Bills sanctioned by Cabinet.

There are other tripartite forums, which are better placed to do other things. Some forums are advisory on specific matters, for example the Employment Conditions Commission and the Commission for Employment Equity or the Advisory Council for Occupational Health and Safety.

Some have more specific functions such as the Board of Trade and Tariffs and the Governing Body of the CCMA. Some have a sectoral focus such as the Motor Industry Development Committee and the newly created industry forum for the clothing and textile sectors. And there are provincial forums in provinces like KwaZulu Natal, Mpumalanga and Eastern Cape.

The formation of other forums of social partnership should not be seen as a threat to the role and credibility of NEDLAC unless they act in such a way as to undermine NEDLAC. The Millennium Labour Council is welcomed by government, as a sign that business and labour are trying to find common ground on how to build the economy and society and move beyond their immediate interests. The Presidential Working Groups are places of engagement and discussion with government.

There is therefore a unique role that NEDLAC can play. I would therefore urge us all to define the issues we want to reach national agreement on i.e. the issues for a tough employment accord through getting the skills revolution moving, improving productivity and the productive capacity of our country, a framework for international trade and a strategy for engagement in the sub-continent and Africa.

We as social partners have the responsibility to focus NEDLAC in this direction. It is not the role of the Executive Director or the small secretariat that runs NEDLAC on a day-to-day basis.

We also have a responsibility to act responsibly in relation to NEDLAC. This includes moving beyond rhetoric, coming to NEDLAC with mandates, being prepared to make genuine trade-offs however hard this is, listening to each other's positions and so on. The kind of things that you are taught about in negotiation training such as "Getting to a YES".

Chairperson, this has been a difficult year for NEDLAC. There were too many Section 77 notices and too few substantive negotiations. Yet progress was made on a number of draft Bills including the Unemployment Insurance Bill and the Municipal Systems Bill.

NEDLAC was also an important forum for social partners to come together in preparation for the World Trade Organisation summit in Seattle.

Recently there have also been a number of important discussions at the Executive Council level to get the tough economic accord going. I would like to conclude by saying that from the side of Government, we are fully committed to make this accord happen.

Phambili!!