M Mdladlana: Biennial Congress of National Union of Leather and Allied
Workers

Speech at the 9th Biennial Congress of the National Union of
Leather and Allied Workers (NULAW) by Honourable Minister of Labour, Membathisi
Mdladlana at Pinelodge, George

21 September 2007

Master of Ceremonies,
The President of the Union, Mrs Carol Mentor,
The General Secretary of the Union, Mr Calvin Nembidzane,
Committee Members and Shop Stewards of the union,
The Mayor of George,
Distinguished Guests,
Ladies and Gentlemen,

The white rabbit put on his spectacles. "Where shall I begin, please your
majesty?" he asked. "Begin at the beginning", the King said gravely "and go on
till you come to the end. Then stop".

Begin at the beginning! Excellent advice – provided you know where it is. I
do. It is on the 16 March 1926 when the National Union of Leather and Allied
Workers was registered. The beginning was eighty-one years ago when NULAW
became the founding party to the Leather Industry Bargaining Council. Indeed
this is an occasion that you should be very proud of, as this was a sign of
committed and visionary leadership. Clearly, these pioneers knew what they
wanted and the sector is still reaping the fruits and benefits of a
well-organised sector. Had they lived, they would have had to tell of
hardihood, endurance and courage.

Eighty-one years ago, when this union was formed, the world was a totally
different place from what it is today. During the formation of this union,
labour and natural resources formed the cornerstones for economic growth.
During the industrial era, this changed to energy resources such as coal and
oil, and their steam and electricity generation capacity. The world economy of
yester-year was not as connected as the world economy of today, and more
importantly, geographic areas were distinct and isolated from each other –
unlike today.

In the last ten years, Manual Castells and Martin Carnoy tell us that the
core activities of the economy have since been internationalised, using the new
technologies. These core activities include more integrated financial markets,
the emergence of multinational corporations, new forms of high value-added
exports such as computers, science and technology as the key drivers of high
performance economies, and the production and global sharing of highly skilled
person power. All these activities can now all operate across the globe at the
same time.

Globalisation is pervasive, and has impacted on all aspects of social life.
It has also led to the decline of the nation state. The power of nation states
to stabilise domestic economic conditions through fiscal and monetary policy
has also been severely undermined by globalisation. Both Castells and Carnoy
argue that with the decline of the nation state there has also been the demise
of key social and cultural institutions and identities that have historically
been part of the nation state. These include institutions and concepts such as
'citizen', 'trade union', 'nuclear family' or 'political party'.

Tempting as it might be for me to focus on all these issues, including the
extent to which globalisation has led to the formation of the fourth world, I
would however like to only talk about two things that directly impact on us as
a result of globalisation.

Let me look first at the twin goals of skills development and employment
equity. 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 seating with the unemployment rate
which 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 last year by the Development Policy
Research Unit of the University of Cape Town. Ladies and gentleman, we are
seating on a ticking time bomb which will leave no winners when it
explodes.

At the same time, our economy has been generating about 76 percent of jobs
requiring semi-skilled and skilled labour, with only 26 percent of jobs
generated requiring labour at the low skilled level. Simply put, we have a
skills mis-match. Unfortunately, this time bomb continues to tick.

This is why the International Labour Organisation, in its recent report on
Equality at Work, said that: "the creation of more equal societies must become
a central goal of development paradigms and policies". This is also why we are
constitutionally required to put in place measures to affirm the previously
disadvantaged. Employment Equity is not a luxury for this nation; it is an
attempt to diffuse this ticking time bomb. Section 9(2) of the Constitution
states that, "Equality includes the full and equal enjoyment of all rights and
freedoms. To promote the achievement of equality, legislative and other
measures designed to protect or advance persons or categories of persons
disadvantaged by unfair discrimination may be taken".

Therefore, those who say we must throw away our employment equity
legislation because it has outlived its use, are living in a fool’s paradise.
The ANC addresses this matter in their strategy and tactics document.

Critical to nation-building is the de-racialisation of South African society
and the elimination of patriarchal relations. It means creating a society in
which the station that individuals occupy in political, social and other areas
of endeavour is not defined on the basis of race, ethnicity, language, gender,
religious, cultural or other such considerations. It means integrating
communities in residential areas, at the work-place and within the trade union
movement, in sports and other areas. It also means a consistent programme of
affirmative action to eradicate the disparities created by apartheid.

The ANC recognises that individuals within such a nation will have multiple
identities, on the basis of their physiological make-up, cultural life and
social upbringing. Such distinctive features will not disappear in the
melting-pot of broad South Africanism. Neither does their association on the
basis of one social attribute or the other constitute a denial of their other
identities. But it is critical that the over-arching identity of being South
African is promoted among all those who are indeed South African, as part of
the process of building an African nation on the southern tip of the continent.
The affirmation of our Africanness as a nation has nothing to do with the
domination of one culture or language by another – it is recognition of a
geographic reality and the awakening of a consciousness which colonialism
suppressed.

Apartheid colonialism also meant the systematic suppression of the talents,
creativity and capacity of women to play their role in the ordering of the
nation’s affairs. Much more than any other sector, colonial oppression and a
universal patriarchal culture, including socially constructed "gender roles",
conspired to degrade women and treat them as sub-human. These gender roles
permeate all spheres of life, beginning with the family, and are entrenched by
stereotypes, dominant ideas, cultures, beliefs, traditions and laws.

Critical to the NDR is not only the affirmation of gender equality, but also
ensuring that it is lived in practice by all South Africans, and finds
conscious expression in all the policies and programmes of the nation.
Concerted efforts will have to be made to educate citizens to change their
attitudes and practices regarding the roles of women and men in society, and to
assert an approach to issues of race and class which consistently recognises
the gender imprint within and among these races and classes. This includes
creating the necessary spiritual and material conditions to facilitate women’s
advancement in all spheres of life.

In the same vein, the youth, the disabled and others have borne the brunt of
apartheid’s hierarchy of denial, and affording them the requisite conditions
for their advancement demands a united national effort.

Addressing these matters is not merely a concern for this or the other
“sector” of society. It is in actual fact a matter of principle, an expression
of our humane values, without which liberation would be neither genuine nor
legitimate.
These are the principle that as a member of the ANC who is loyal and
disciplined is abiding by. I will not be addressed through the media on policy
issues but by the legitimate structures of the ANC.

With globalisation having weakened the nation state, the creation of this
equal society cannot be the sole prerogative of the state. Employers and
workers have to form part of this building process. Employers must do more to
open their doors and affirm workers from the previously disadvantaged, whilst
workers must also do better to organise at the workplace and ensure that
employment equity is adhered to. Unions must make sure that they participate
fully in the Employment Equity Consultative Forums, not only to make a
meaningful contribution, but to engage in the monitoring and evaluation
processes to make sure employers do not attempt to circumvent the requirements
of legislation both procedurally and substantively. We all carry the
responsibility to create a diverse and tolerant workforce that is equitable in
nature and free from unfair discriminatory practices.

Equally, both employers and workers are represented on Sector Education and
Training Authority (SETA) boards and therefore have to accept responsibility
with regards to SETAs that are not pulling their weight, and find ways to
improve the functioning of our SETA system. As social partners, we introduced
the Skills Development Act to empower those in employment and the unemployed.
We wanted our society to acquire the necessary skills to enable it to produce
good quality products or render the best services, for people to enter formal
or self employment, and to derive an income that will improve their standard of
living. At the same time, employers will also derive benefits in terms of
productivity growth and profits. To facilitate and implement these skills
development interventions, we have established the 23 SETAs including the
Clothing, Textile Footwear and Leather SETA (CTFL SETA) controlled by an equal
number of employer and trade union representatives.

However, I am told that countries such as Italy and India source their
Leather from countries such as ours to produce some of the finest shoes,
leather wear, and lounge suites that we in turn buy at 50 percent+ the original
price they paid for. Of course this phenomenon is also rife in other raw
materials that we produce. They manage to do all these because of the
technology and the skills levels they have developed in their countries. We are
sitting with a declining sector and huge unemployment levels especially amongst
the youth – why are we not able to do the same? We need to start developing the
necessary skills amongst our people so that we can produce these products
ourselves. Amongst the questions I want to pose to you today, is what
difference do you believe you have made in the CTFL Seta? Is the institution
serving the needs of your members and the industry? Do you know who represents
workers in the SETA since its inception and to what extent have you held such a
representative accountable? Going forward, given the levels of this SETA's
income and its size, and the new National Industrial Policy Framework - what
are your views regarding the future of this SETA? I am raising these issues
because I want you to be part of the debates in order to advance the course of
workers in the Leather sector.

I would like to now change gear, and focus on the second issue that
globalisation has made us suffer from: the decline of the nation state and its
implications on the demise of key social and cultural institutions and
identities that have historically been part it.

The advent of globalisation has weakened nation states and the extent to
which they are able to direct nations in particular ways. Today, skilling your
people does not necessarily mean that they will work for you. In all
likelihood, they might just relocate to work in other countries. At the same
time, we also benefit from skilled people trained by other countries.
Businesses come and go as they please, the rand goes up and down as it pleases,
and the list is endless. Therefore, being able to carve a definitive role of
the state has become more challenging under globalisation. It is however not
only the state that has had to adapt or die. Our labour market institutions are
facing similar challenges.

Chairperson, in all the congresses of unions and bargaining councils I
address, I always raise the issue of representivity of bargaining councils as a
challenge that we need to address. Representivity of parties to the councils is
the life-blood of the continued existence of such councils. Independent
research is indicating to us that the bargaining councils cover just less than
a third of employees that are potentially covered by collective bargaining. I
have also done a quick scan of the representivity percentages of bargaining
councils registered with my Department, and the trends are consistently going
downwards. To illustrate my point, in building, the Cape of Good Hope
bargaining council has had its trade union representivity declining from 58
percent in 2002 to its current 44 percent; the Road Freight bargaining council
has had its trade union representivity declining from 48 percent in 2002 to its
current 43 percent; the motor industry bargaining council has had its trade
union representivity declining from 56 percent in 2002 to its current 48
percent; the same declining representivity trends are evident in entertainment,
furniture manufacturing, metal and engineering; and with your sector, trade
union representivity has also declined from 81 percent in 2002 to its current
70 percent, which is one of the best performers.

Therefore I am very happy to address a union that stood the test of time.
Every one will understand that a union like yours will have its ups and downs,
but a union with character and integrity will achieve diversity and prove its
worth to the world. On this occasion it is fitting to reflect on some
achievements registered by this union in relation to our collective bargaining
system and bargaining councils in particular.

Your union negotiated a restructured footwear agreement, which I extended to
non-parties on 26 September 2005. This is being regarded as a groundbreaking
approach to accommodate the needs of all the different employers in the
industry, especially the small, medium and micro enterprises (SMMEs) who
previously had to apply to the council for exemptions from collective
agreements. The agreement allowed for the categorisation of employers into
Formal, Semi-Formal and Informal Employers, and enabled employers and employees
to negotiate certain employment conditions, including wages, at plant level,
which allows employers particularly, a large degree of flexibility.

This is an achievement that your union was largely responsible for and of
which you can be proud. These are the types of innovations that unions should
look at to try and improve the working conditions of their members. I wish more
unions would follow this practical approach to negotiations.

Nonetheless, there is general decline in trade union membership.
Globalisation has placed more emphasis on trade liberalisation and the
relocation of production to lower-wage economies, which has an adverse effect
on the working class. The World Commission on the Social Dimension of
Globalisation acknowledged that globalisation has had a varied impact on
employment and economic sectors with the decline in formal employment being
experienced in developing countries. Due to the fundamental principles guiding
globalisation, the power of the markets have grown and increased with the
working class being subordinated to an international process of capital
accumulation. As a consequence, these global trends have also been accompanied
by the changing methods of work organisation and “atypical” forms of labour -
which have made all the more difficult for trade unions to organise workers
successfully using the old traditional forms.

In 2000, you acknowledged that the fall in production and employment in the
footwear industry was due to amongst others the demands for a flexible labour
market and liberalisation of the economy. All these changes have an adverse
impact on the working class with the development and emergence of a "new
sub-class" of workers characterised by employment, income and all other forms
of insecurities. These insecurities, which have largely resulted in
informality, pose major challenges to unionisation and the patterns of
collective organisation and solidarity.

This situation might be worsened by the issues I raised earlier around the
changing nature of work organisation with more emphasis on casualisation. With
increasing casualisation of workers, the capacity of labour to organise is
increasingly being weakened, with the resultant effect that more and more
bargaining councils are becoming less representative, which means that their
collective agreements cannot be extended to non-parties. Whilst some might see
the weakening of trade unions and bargaining councils as a positive
development, I do not see it as such. A strong collective bargaining system has
served this country well over many years and to weaken any of the role players
in the system could be regarded as a recipe for disaster. As a trade union, you
have to play a major role in strengthening our collective bargaining system and
institutions.

Challenges, as you know, will come in different forms. Your task will not be
easy unless you address the weaknesses in your organisation and your
structures. If you want to continue enjoying the benefits of the collective
bargaining system, you need to find ways to hold on to the current membership,
as well as find ways of recruiting new members. Due to the changing nature of
employment, the ball will remain squarely in your court to stay a step ahead in
the representivity race. The representivity of parties to bargaining councils
is the most challenging requirement for the bargaining council system to
survive. We will however not win this race by reviewing the threshold of
representivity, as some of my comrades in COSATU have proposed, because that on
its own will erode the legitimacy of the bargaining councils system as a whole
both in South Africa and internationally.

With the challenges of globalisation upon us, I urge you and employers 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. In other words, you must all work towards making this
industry competitive by organising better in the workplace.

I congratulate the Union again on the service and dedication to the Industry
over the past 81 years. NULAW is an excellent example for all to see and
emulate.

I wish you well with the rest of your Congress; I hope your congress will
achieve what you set out to do.

Thank you.

Enquiries:
Name: Zolisa Sigabi
Cell: 0829063878
Email: zolisa.sigabi@labour.gov.za

Issued by: Department of Labour
21 September 2007
Source: Department of Labour (http://www.labour.gov.za)

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