President, Vice-President and General Secretary of Food and Allied Workers Union (FAWU)
Ministers’ present
Office bearers and officials of FAWU
Shop stewards and FAWU members
Esteemed guests
Ladies and gentleman
It is an honour for me to address this morning one of South Africa’s oldest trade unions with a pedigree and proud history of democratic worker organisation. Indeed, this organisation is responsible for producing some of the most effective union and political leaders – people like Ray Alexander Simons, Elizabeth “Nanna” Abrahams, Elizabeth “Rocky” Mafikeng, Oscar Mpetha, Chris Dlamini and Jay Naidoo come to mind.
You have earned your stripes by being one of the few trade unions that has consistently organised and represented workers in vulnerable sectors, such as agriculture and fishing, to name just two sectors.
Indeed, any society that is worth its salt and considers itself fair and just must ordinarily put in place measures to mitigate the worst of conditions for those deemed to be the most vulnerable in society. The strength of any society can only be measured by the extent to which it is able to cater and develop for the weak.
It therefore makes sense that you have asked me today to touch on the plight of vulnerable workers, something I will reflect on in a while and the other issues you asked me to address.
The vision of the Department of Labour is to ''strive for a labour market that is conducive to Investment, Economic Growth, Employment Creation and Decent work''.
As a consequence thereof, we consider as our mandate creating an enabling environment for:
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Improved economic efficiency and productivity
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employment creation
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sound labour relations
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eliminating inequality and discrimination in the workplace
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alleviating poverty and unemployment
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enhancing occupational health and safety awareness and compliance in the workplace
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Nurturing the culture of acceptance that worker rights are human rights.
Over the next five years, we will work closely with sister departments and our social partners to speed up service delivery in response to the strategic priorities of government. The department will focus on:
- Decent work
- Public employment services
- Enhancing inspection and enforcement services to effectively monitor and enforce compliance with legislation
- Strengthening social security
- Strengthening the institutional capacity of the department
We are aware that we will be implementing our strategic plan in a challenging context with ominous clouds of tough economic times ahead. Gross domestic product in the second quarter reached on 1.3 percent only. This is much lower than expectations.
Even in the face of difficult economic circumstances, we have to remember that fair labour practice is the right afforded to every worker who enters the labour market in this country. It does not matter whether that worker is a South African or not. This is a fundamental right that is enshrined and protected by the Constitution, the supreme law in the Republic of South Africa.
Workers’ rights are human rights that must be respected by all employers both in private or government sectors. For us, fair labour practice means decent employment and fair wages for every employee.
However, despite the protection of the Constitution, many workers are left in a highly vulnerable and untenable situation. Just last week, we learnt of the worker who had been forced to strip naked to prove that she was female. This is a singular and disturbing act of cruelty that should have no place in our constitutional dispensation especially considering that it happened in the Woman’s Month. This should anger all decent people.
Many workers find themselves in situations where they cannot earn enough to make a decent living. They have limited access to training and education which would improve their chances of a better job, and many are prevented by hostile employers from enjoying basic social protections like joining trade unions that may represent their interests.
More women and young people find themselves in vulnerable and precarious jobs and as a result, some employers will exploit this situation to secure their services at the lowest possible cost. Yet we are bombarded by arguments that our labour market is rigid.
In fact, you may very well argue that the labour market is too flexible and that there is insufficient protection for vulnerable workers. We strive for regulated flexibility which will create a balance between maximising job opportunities and protection for workers in vulnerable sectors.
A recent intervention in the debate about the state of our labour market which should be close to Food and Allied Workers Union's (FAWU) heart, was the recent release of the report by the Human Rights Watch on the human rights conditions in South Africa’s fruit and wine industries. The study presents a disturbing picture of conditions facing farm workers in the country’s fruit and wine farming industry.
This report has generated a lot of controversy and many have criticised it for its methods and alleged over-generalisation on the basis of limited evidence. But as is well known, ''where there is smoke, there is fire.''
What the critics cannot say is that there are there are no problems in this sector of the agricultural industry. We need to rededicate ourselves to do our best to change this unacceptable situation.
There are a number of recommendations in the report about what the department can do better and these we will take seriously. Equally, I would urge FAWU to examine what it could do differently to improve conditions in the fruit and wine industry.
In the department, there are currently two processes underway with respect to the farm workers sectoral determination. The first is a review of the conditions of employment and minimum wages as set out in the sectoral determination for the farm worker sector whilst the second entails an investigation into the feasibility of establishing a provident fund for the sector.
With respect to the review of conditions of employment and the minimum wage in the sector the department has published a notice setting out the terms of reference for this process. In taking forward its commitment to social dialogue, the department conducted a range of public hearings in order to obtain inputs from the social partners.
A report will be submitted to the Employment Conditions Commission (ECC) for its deliberation, who in turn will make recommendations to the Minister of Labour. Once I have had a chance to consider the recommendations, I will promulgate the reviewed conditions and wages for the sector, if I agree with the ECC recommendations.
Secondly, the department published a notice on 20 August 2010, signalling its intention to investigate the feasibility of establishing a provident fund for the sector. This requires a broader consultation both with the social partners and the service providers that provides these services but also with the government’s process of social security reform in order to realise the best possible benefit for farm workers many of whom do not enjoy this protection. Because of the technical nature of these discussions it will however take some time in order to realise this intention.
Two of the fundamental principles underlying the establishment of a minimum wage is the effect that it has on employment and its effect on the alleviation of poverty. While we acknowledge that the best way of providing relief from poverty in vulnerable sectors is through direct transfers such as social grants, it is very clear that the minimum wage can play a significant role in poverty alleviation.
In research conducted for the Department of Labour in 2010 an analysis of the impact of minimum wages on poverty was made. The definition of poverty employed was wage poverty, and I am happy to say that the results of the study on wage-related poverty indicated that the decline in poverty levels was most apparent for workers covered by the domestic, farm and forestry sectoral determinations.
Despite these positive findings, I am sure that you know better than I do that farm workers are some of the most poorly organised workers in the country. The lack of collective bargaining and weak trade unionism in this sector increases the level of vulnerability and marginalisation. We are also concerned about the lack of freedom of association in the sector and the lack of effective voice by workers.
In the inspections that I have conducted across the three provinces, one theme is common throughout - farmworkers feel that their unions should do more to protect them.
Workers complain that their union representatives are not playing the role they expect of them especially when it comes to issues of protective clothing, health and safety issues and would like to urge the union to make a concerted effort in helping to address the plight of farmworkers particularly.
As a result, we have commissioned a study to identify and isolate the reasons why freedom of association in the sector is so poor and how unionisation can be improved. We anticipate that the research findings will point to possible interventions that can assist the parties in the sector to enhance freedom of association. We are expecting the report of this study in the next few weeks and look forward to engaging with FAWU on the findings and about ways of stimulating democratic unionisation in the sector.
Programme Director
Turning to the fishing sector, there are already two instruments that regulate conditions of employment in the fishing sector. Firstly there is a statutory council in the squid industry that functions primarily around the Eastern Cape area whilst there is a bargaining council for the fishing sector that is national in scope.
As a member state of the International Labour Organisation, South Africa played a significant role in the establishment of both the convention on work in the fishing sector as well as the Maritime Labour Convention. There are currently processes underway with the Department of Transport that is the lead department in this regard to amend the Merchant Shipping Act especially Chapter four of that Act.
These amendments would not only serve to modernise conditions of employment for maritime workers as well as fishermen but also to allow the country to ratify these conventions. The Department of Transport is committed to these amendments and has requested that the amendment Bill be submitted at National Economic Development and Labour Council (NEDLAC) for continued consultation.
The department is also in consultation with stakeholders in the fishing sector on the possibility of establishing a sectoral determination for this sector. Given that there are two institutions of collective bargaining in this sector, a registered Bargaining Council as well as a statutory council, we will have to proceed with due regard to these institutions and their registered scope within the sector. FAWU is involved in the sector and in the councils and I would urge you to participate constructively in the process.
Colleagues, a major challenge for us at present is to find an appropriate way of dealing with the abuses associated with labour broking. Labour broking has become a feature of the South African labour market and has entrenched the practice of triangular employment relationships which often result in workers have insufficient security of employment and inadequate protection from unfair dismissals.
The effect of labour broking arrangements on working conditions has been to exercise downward pressure of decent working conditions and to increase insecurity of employment.
In the farming sector, labour brokers are also used to recruit “seasonal” workers on farms. Many of these workers have been working for these farms for a number of years but their status remains one of a seasonal worker and they are recruited through employment agencies.
Dealing with labour broking in a way that extends protection to workers and eliminates abuses is a major priority for my department. As you are probably aware, my department released four Bills in December which amend labour legislation with a view to dealing with the phenomenon of labour broking.
Discussion and negotiation at NEDLAC on the Bills has been proceeding for some months now, but it is important that we give social dialogue a chance to come up with the best possible solution. These issues are not straightforward as they go to the heart of the debate over labour market flexibility. The decisions that are taken now will have important long-term consequences for the functioning of the labour market and we have to ensure that we strike the right balance.
Let us give the NEDLAC process and chance.
In conclusion, let me thank you again for this opportunity to address you and I wish you well in your congress deliberations.
