Address by the Honourable MMS Mdladlana Minister of Labour at the Nedlac Annual Summit

Sandton, 9 November 2002

Deputy President,
Honourable Minister's,
Leaders of organized labour, business, and community constituencies,
NEDLAC Executive Director,
Distinguished guests,
Ladies and Gentlemen.

It gives me great pleasure to be with all of you again on this momentous occasion of the NEDLAC ANNUAL SUMMIT 2002.  

I am here to reaffirm with you that NEDLAC is our country's pre-eminent institution for social dialogue. It is true that there are those doubting Thomases that question its achievements and the commitment of the social partners to its success. However, whilst numerous challenges remain, we are convinced about the correctness of the path we have chosen to institutionalise social dialogue and partnership in this country. Indeed, over the last eight years NEDLAC has brought the voice of organized labour, business, and broader civil society (community constituency) to bear in all the critical social and economic decisions that our new democracy had to make. The results are there for all to see--agreements have been reached by social partners on numerous 'contentious' issues that could have torn apart other societies in transition.

The Summit provides an opportunity for us to celebrate the continued successes of this institution and the able leadership of the Executive Director, Philip Dexter, and the commitment shown by the entire Secretariat. We wish to thank them for their contribution to the development of social partnership in our country, and their diligence and efficiency in the organizing of the Annual Summit.

The Deputy President has spoken to us about the preparations for the Growth and Development Summit next year. It is my view that with the maturing state of social dialogue in the country, as seen in some of the achievements of NEDLAC during the year, substantial gains will be made to improve the performance of our economy and the welfare of our citizens. But as the Deputy President has warned us the "stakes are higher and the urgency for success never greater"!

The Summit will provide a true test of the state of social partnership in our country. We will be able to see whether social partners are indeed able to contribute to the broad vision of reconstruction and development of our country, and can rise above the sometimes '-narrow' sectional interests. The challenge will not only be in the substance of the agreements reached at the Summit but will also be about the level of commitment to those agreements.

 In reviewing the activities of NEDLAC during the course of the year, I am heartened by the numerous gains that have been made and the increased level of activities within all the NEDLAC chambers. With the successful promulgation of the labour law amendments, the work of the Labour Market Chamber was for a change scaled down but the achievements made in the other Chambers are to be commended. The ICT and the Financial Sector summits, held during the course of the year, increased the visibility of NEDLAC to the broader society and can be viewed as great achievements for social dialogue. In many other areas of work at NEDLAC we have continued to see how, through social dialogue, social partners are able to find areas of common agreement that can contribute to the reconstruction and development of the country. It is our hope that this spirit of dialogue and engagement will continue and lead to the success of the proposed Growth and Development Summit.

The different structures of NEDLAC, the management committees and the chambers, need to be commended for their work during the year. However, whilst our convictions about the importance and role of this institution remain unshaken, we would like the growing maturity of the social partners to also be accompanied by a greater awareness of the performance management of this institution. NEDLAC should begin to set itself performance indicators that not only consider whether it has delivered in terms of activities that it planned but also the impact of those activities. It is our view that such an approach will ensure not only a more effective and efficient institution but also the gains of social partnership will be felt countrywide.

Earlier this year, NEDLAC's management committee noted that the World Summit on Sustainable Development would be a milestone in terms of global events for years to come. So far their predictions have been shown to be correct.

Thousands of delegates, from across the length and breadth of the globe, descended on our shores and it was a hugely successful event, by all accounts. Important agreements were reached at the Summit and the challenge that remains is one of implementation.

 The Summit identified poverty eradication, changing unsustainable patterns of production and consumption, and protecting and managing the natural resource base of economic and social development, as the overarching objectives of, and essential requirements for, sustainable development. The theme of this years ANNUAL SUMMIT: "Sustainable Development: A platform for Growth" -could not have been more appropriate. It is my fervent hope that NEDLAC will encourage and monitor how social partners contribute to the implementation of the agreements reached at the World Summit on Sustainable Development (WSSD).

Achieving 'sustainable' development requires that social partners pull together, through  'social dialogue', to face the challenges of enormous burdens of poverty and inequality, slow economic growth, and lack of adequate employment creation, which are a reality in our country.

I wish to argue also that 'social dialogue', a key element of Decent Work strategy outlined by the International Labour Organization, is important for the achievement of sustainable development.  

'Social dialogue' or the amicable resolution of differences between interest groups in a society (through consultation, negotiation, and exchange of views) is an important means of reducing social conflict and fostering social cohesion.

Economists, such as Professor Rodrik of Harvard University, have shown how social conflict is harmful to economic development, "both because it diverts resources from economically productive activities and because it discourages such activities by the uncertainty it generates". Growth and development become difficult when different groups of society are at war with one another. Our experience under apartheid is a clear illustration of this hard fact.

Social dialogue and social partnership enables a country to face the present and the future with confidence. Again there is evidence in the literature on economic growth experiences of different countries that suggests that countries with effective institutions of 'conflict management' are better able to respond to external shocks!

Undoubtedly, NEDLAC faces various challenges in its facilitation of social dialogue today, such as the creation of other fora  for social dialogue (e.g. the Millennium Labour Council), the quality of representation of stakeholders, and delays in the reaching of consensus and finalization of agreements.

However, it needs to be remembered that NEDLAC was created by an Act of parliament and is given a formal role in various other statutes. It is the only body that can make social dialogue a reality in our country and needs to be given the respect and stature it deserves by all social partners.

Concluding remarks

Chairperson, allow me to conclude by agreeing with the ILO when it states "Social Dialogue among different social and economic groups and between these groups and the public authorities is an essential attribute of a democratic society".

Today the culture of dialogue developed during our transition from apartheid to democracy has deepened in our country and continues to permeate the fabric of our society in all spheres of life. We have also institutionalised social dialogue through forums such as NEDLAC.

It is our hope that as our social partners, you will once again commit yourself to strengthening your representation and participation in NEDLAC and use NEDLAC as that vehicle to entrench your involvement in policy formulation. The challenges before us are numerous but through sincere partnership we cannot fail.

I thank you