Chairperson
Parties to the council
Distinguished guests
Ladies and gentlemen
Thank you for the invitation to address the annual general meeting of the National Bargaining Council for the clothing industry. It is a great honour and pleasure to address you on this occasion. The Clothing Bargaining Council is the centre of the negotiations between trade unions and employers organisations and is responsible for the administration and enforcement of agreements reached by the parties. The annual general meeting like this one is always an opportunity for the stakeholders to take stock of policies that were introduced and a time to reflect on the successes and also to determine whether those policies are still serving their purpose.
Ladies and gentlemen, the constitution of South Africa promotes sound labour relations. When this government took over, it introduced the Labour Relations Act of 1995 which gives effect to the spirit of our constitution. Amongst other things, the Labour Relations Act promotes orderly collective bargaining. Collective bargaining is a core element of the larger concept of social dialogue. It contributes to positive economic and labour market outcomes and can have positive economic effects at the micro and macro levels.
At the macro level, orderly collective bargaining can contribute to democracy, social stability and equality of treatment, reduce the trade-off between inflation and employment and facilitate smoother, more balanced adjustment to economic reform. At the micro level, collective bargaining contributes to the settlement of labour conflicts, improved productivity, investment in workforce development and enterprise adjustment in a more competitive environment.
Effective collective bargaining, culminating in an agreement which is mutually beneficial to the parties concerned, will occur most often where there is a framework for labour market governance that upholds the fundamental rights of workers and employers and promotes social dialogue and decent work.
Such a framework is characterised by recognition of the right of workers and employers to associate freely and to establish organisations of their own choosing. It is imperative that these organisations are strong, independent, representative and democratic, having knowledge of key issues, access to and effective involvement in social dialogue institutions and processes and the capacity to influence social and economic discussions. This government has gone a long way in creating the legislative and institutional environment which includes effective machinery and mechanisms to facilitate and promote collective bargaining.
Ladies and gentlemen, the Labour Relations Act promotes collective bargaining and the bargaining council system is the preferred way of regulating and improving conditions of employment in the South African labour market. The approach of the State in this regard is founded in the belief that the employer and worker parties in an industry, trade or service are best able to deal with matters of mutual interest through negotiation so as to maintain stability and, hopefully, sustainability. The state's function is to provide the legislative framework for interaction of employers and workers and to balance the power relationship between the parties.
The bargaining council creates a fair “playing field” for all employers and employees in the industry. The parties to this council have shown over the years that they can effectively deal with almost any problem that comes their way. The council system is not perfect, but it is certainly a lot better than what we would have if there was a “free for all” in the market place.
Having said that, I am aware of the labour tensions in the country currently but I am confident that the relevant role players will be able to deal with the problems within the framework of the act.
I am also aware of the current challenges facing the council which is that of non-compliance by some employers with the collective agreement of the council. I know that the council has served notices on about 400 clothing manufactures who do not comply with its collective agreement and also that the problem of non compliance goes back a few years and that the council seems to have exhausted all its options of accommodating the employers who are non- compliant.
I am aware of the upheavals that have been caused in the process of attempting to recoup what is due to the Council and workers in the industry. At the same time there appears to be attempts by the media to lay the blame at the feet of the council and the collective bargaining system. I must congratulate the council for embarking on a long and short term strategy to find a solution for the problem. This shows maturity on the council’s part which is commendable. I have confidence that the council will be able to come to an amicable solution on the matter and at the same time encourage those employers to join the bargaining council. Their participation at the council level will prevent this situation in future.
The government wants compliance with all its laws and no less negotiated minimum conditions of service. Bargaining council agreements are secondary legislation and must be treated seriously. If an employer cannot comply with the agreement, there are specific provisions for exemptions, arbitration and review processes as well as appeals to the independent appeal boards.
Job creation remains one of the main objectives of the government. Although this on its own is very difficult to achieve, no effort must be spared to achieve this objective. We must strive to create decent work for our citizens. It is a declared policy of the department that the jobs that are in existence should be retained at all costs but that those employers should strive to nevertheless provide decent jobs. This is clearly a balancing act that both unions and employers should work on. The words “decent work” have been uttered on many occasions but has not been understood properly. In this regard I want to share what the International Labour Organisation (ILO) regards as elements or characteristics of decent work:
- It is productive and secured work
- It ensures respect of labour rights
- It provides an adequate income
- It offers social protection
- It includes social dialogue, freedom of association, collective bargaining and participation.
Any attempt to comply with the above may be regarded as positive action towards decent work.
Our economy has been registering tremendous growth in the last ten years, but this growth has been of a different type. It is growth that is largely technologically driven, as is the case elsewhere in this global world. This skewed growth has therefore demanded labour with intermediate to high-end skills. At the same time, the apartheid education and training system had been designed to keep more than 80 percent of our population largely unskilled, or at best, trained at the lower-end of the skills pipeline.
The fruits of this unfortunate paradox are that today, we are sitting with an unemployment rate that is mainly comprised of individuals with less than a matric qualification – most of whom are African and female. A small percentage of the unemployed has a post matric certificate, the bulk of them have a diploma or certificate and only a few have a university degree. The total African unemployed graduates make up 85 percent! These shocking statistics do not come from me, but are contained in a report prepared and released by the Development Policy Research Unit of the University of Cape Town. Ladies and gentleman, we are sitting on a ticking time bomb which will leave no winners when it explodes.
With the challenges of globalisation upon us, I urge both employers and trade unions in the industry to work towards strengthening the sector. I believe bargaining councils’ duty is not only to bargain on wages and conditions of employment, but to also look at ways to strengthen the sector in order to prolong the lifespan of the sector.
I congratulate the members to the council on the services and dedication to the Industry over the past year. This council is an excellent example for all to see and emulate. My department views this council as a model council and is proud of the way it operates.
I wish you well with the rest of your meeting and I hope you achieve what you set out to do.
Thank you.
Source: Department of Labour
