Minister Mildred Oliphant on labour law amendments

Labour Minister Mildred Oliphant commits to completion of amendments to labour laws and transformation of workplaces

Labour Minister Mildred Oliphant has identified the top policy priorities for 2014 in South Africa as the conclusion of amendments to labour legislation to give certainty to the policy environment and to expand protection for vulnerable workers; and ensure faster change in employment equity in workplaces.

The Minister was addressing the Annual Nedlac Organised Labour Conference where she was asked to reflect on key policy issues for 2013/14, challenges on implementation of the employment, labour brokers and labour market section on the National Development Plan (NDP).

Oliphant said the issue of violence during strikes, including those factors that give rise to violent action and protracted strike action will receive particular attention in the coming year. Another matter that would receive focus was the review of the possibility to increase minimum wages so as to address poverty and inequality, and; to expand provision for retirement savings for low income workers.

The Labour Minister cautioned that recent developments in the labour front signify a turbulent period ahead. Oliphant said the sooner the labour law amendments were concluded: “we will be able to deal with abuses in the labour market and problems of non-compliance with our labour legislation”.

Labour laws that are under Parliamentary scrutiny include the Labour Relations Act, and the new Employment Services Bill.

“As you are well aware, we have ended another year in which the labour arena has been highly contested and it has been marked by conflict and controversy. It can only get better from here and that will be possible if we make a commitment to work together in addressing the many challenges that face us. 

“The improvement that we hope for this year was given an impetus when news broke late last year that employment levels reached 14 million in the third quarter.  The labour market is back to the employment peak of 2008 before the recession started to bite. You will recall that South Africa lost 1 million during the recession of 2009 and it has taken us since that time to recover and for jobs to be recovered.  The official unemployment rate declined to 24.7 percent in 2013.”

Oliphant threw the gauntlet to organised labour not to wait until a lapse in wage agreements. She advised unions to start wage talks as early as possible. She also questioned the logic of prolonged strike that resulted in low percentage wage settlements saying that unions have a responsibility to guide and advise workers.

The Minister lamented the call for her to constantly intervene in labour disputes; she said this was an indictment on the quality of leadership, “If you constantly call for the Minister to intervene, by implication you are saying you don’t have capacity to deal with labour disputes”.

According to Oliphant the most important challenge for the year ahead must surely be to do everything possible to ensure that the number of decent jobs continues to grow. She said it was for this reason that Department was of the view that all sectoral determinations should also include provision for retirement savings. 

“We also hope that this year will buck the trend of 2013 that saw a higher number of new contract jobs or short-duration jobs than permanent jobs. The National Development Plan target is for 2.8 million new jobs to be created by 2015, or total employment at 15.8 million,” Oliphant said. 

She said this target comes against the background of ongoing criticism of South Africa’s labour legislation and attacks on our labour dispensation, especially by some international organisations, business and the media. 

Oliphant said: “There are also some who are clearly of the view that our labour legislation is too restrictive and that the South African labour market is over-regulated. We certainly don’t think so. As government we are committed to a policy and legislative approach that is captured by the concept of regulated flexibility”.

According to Oliphant an area that will remain a priority and a challenge for the department is employment equity. She said it was quite evident that remnants of Apartheid still persist in a number of areas in the private sector particularly, with the public sector managing to make huge strides in transformation.

“Many private sector employers are still found wanting in implementing employment equity. It seems it is ‘business as usual’ for many of them,” she cautioned and called for organised labour to play a proactive role to ensure transformation in South Africa.

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