3 April 2006
The long awaited discussions on the labour market flexibility will kick off
on a high note when Labour Minister Membathisi Mdladlana tables the matter for
debate with social partners at Emperors Palace, near Kempton Park on
Thursday.
Participants will include organised labour, business, community
representatives and academics that had developed numerous angles and approaches
on the regulation framework.
Issues on labour market policies and its impact on job creation, small
business development, regulatory efficiency of the Commission for Conciliation,
Mediation and Arbitration, dispute resolution and the Labour Relations Act,
will form the core part of the entire debate.
The Labour Relations Act (LRA), as amended in 2002, has further clarified
matters and consciously attempted to ease procedures on dismissals in a manner
that should favour small businesses.
For example, section 188A now provides for an agreement for pre-dismissal
Arbitration where an employer may, with the consent of an employee, request a
Council, an accredited agency or the CCMA, to conduct arbitration into
allegations about the conduct or capacity of that employee, said Labour
Minister Mdladlana.
âWe do not know yet whether these amendments have achieved the desired
effect, or whether the problem is institutional either from the CCMA side,
employer side, and or employee side. In my departmentâs analysis we have also
found that bargaining councils have limited coverage within the private
sector,â he said.
There are 51 bargaining councils covering some 2,3 million workers of the
total South African workforce of 11.6 million. Over 60 % of these workers fall
within the five public service bargaining councils (1 075 969), local
government bargaining council (196 000) and a council covering a single
parastatal Transnet (184 788) in which the issue of extension does not
arise.
It is estimated that there are about 300 000 workers employed by non-party
employers to whom council agreements could be extended within the private
sector, which represents less than 2.6% of the total workforce of the country.
In 1983 there were 104 councils and in 2004 there were about 57 councils.
Academics have argued that the employersâ organisations on councils need to
be more representative of small businesses in numerical terms and this should
translate into effective representation of small business interests in council
negotiations.
âWe are taking arguments presented by academics and their conclusions
seriously. They have implications for our legislative work, but more
importantly, assist us in unblocking implementation challenges.
âWe have said that deregulation does not automatically lead to increased
labour market efficiency and in certain instances might lead to inefficiency.
We are therefore clear in our decision not to de-regulate the labour
market.
âOur LRA is underpinned by the principle that organized labour and business
will bargain collectively on matters that are of importance to them. In
considering any interventions to the labour market regulatory environment, the
principle of self-determination and regulation must be remembered,â the
Minister said.
Enquiries please contact
Mokgadi Pela
Cell: 082 808 2168
Website: http://www.labour.gov.za
Issued by: Department of Labour
3 April 2006
