The Department of Labour (DoL) was receiving an annual average of 140 applications for union registration over the last three years, raising concerns of a proliferation labour unions.
Department of Labour Deputy Director-General of Labour Policy & Industrial Relations, Les Kettledas, said in recent years the department had declined 540 applications, because they failed the verification test. Kettledas said the number of registered trade unions in South Africa was at 248 in 1995 and the number peaked to 504 in 2002, while membership increased from 2,7 million to 4,1 million.
In 2012, 29% of employees in South Africa were reported to be union members. This is similar to the Organisation for Economic Cooperation and Development (OECD) and other large middle income countries. Currently, there are 193 registered unions with a combined membership of 3,2 million.
Turning to the current state of the labour market, Kettledas said there were 11 Sectoral Determinations (SD) in South Africa protecting the vulnerable workers. These Sectoral Determinations include sectors such as agriculture, domestic, forestry, children in the performing arts, wholesale, retail and taxi among others. The SD’s cover some 5,8 million workers with domestic sector accounting for some 1,1 million and retail 1,9 million workers.
Kettledas said Sectoral Determimations play an important role in the labour market in the protection of vulnerable workers. “Minimum wages regulation increases the standard of living and decreases poverty”.
According to Kettledas, the department was recommending the possibility of introducing a provision for retirement savings for all Sectoral Determinations. He said a multi-department/organisational investigation was expected to include the National Treasury, SARS and the department’s public entity, the Unemployment Insurance Fund - to explore appropriate mechanisms and practical implementation. He said in the envisaged plan SARS would act as a collector and the UIF as a delivery agent for contributors.
According to Kettledas, the Department of Labour was committed to a programme of action to stabilise the volatile labour market through facilitating regular monitoring by the Commission for Conciliation Mediation and Arbitration (CCMA) of disputes in the economy; DoL and CCMA to develop draft protocol for discussion in Nedlac (develop a protocol for membership verification); inject more resources for trade union education.
He said the department was looking ahead to the hosting later in the year of a Labour Relations Indaba to deal with labour market disputes.
Kettledas said the South African labour relations market in 2013 was characterised by low levels of employment growth and persistent high unemployment. He also lamented the adversarial labour relations prevailing.
