FEDUSA President and General Secretary and all leadership,
Honourable Ministers,
Cosatu President Sdumo Dlamini,
Esteemed delegates,
Distinguished guests,
Thank you for inviting me to share this occasion of the opening of your 5th congress.
FEDUSA is an important partner and stakeholder. We value your participation in social dialogue on all aspects affecting your members and society in general.
Social dialogue between the stakeholders in the economy, and especially organised labour and organised business, is central to managing the economy.
Through meaningful social dialogue, we are able to make stakeholders to look beyond their immediate self interest to the national interest.
Such social dialogue has roots in our history. As South Africans we were able to solve our political problems and usher in a new democratic order, through sitting together in a dialogue, as various political parties with divergent interests.
It is a uniquely South African trait for people who do not see eye to eye to be able to sit down successfully to discuss matters that are in the national interest.
We have many recent examples of where quality social dialogue has been used to work towards improving the quality of life.
We can mention the following amongst others:
- The drafting of the Framework Response to the Global Economic Crisis in 2008-2009 and cooperation during its successful implementation.
- The development of Social Accords in terms of the National Growth Path and the 19 April 2011 Presidential Labour Summit meeting decisions.
The four Accords signed since July 2011 are the National Skills Accord, Basic Education Accord, Local Procurement Accord and the Green Economy Accord.
We are also pleased with the success of social dialogue on South Africa’s position on the International Labour Organisation’s Recommendation on HIV and AIDS and the world of work.
You are also aware of the follow-up work that is happening in reviewing our Code of Good Practice under the Employment Equity Act in NEDLAC.
We also worked together in concluding the ILO Decent Work Country Programme in 2010 and moving to implementation of priorities agreed by the social partners.
Clearly, as government, business and labour, we are setting the trend for other sectors to work together as well to build a great South Africa.
Compatriots,
The Fedusa national congress comes at an opportune time. For the first time in a while, we received encouraging news that employment has improved.
As you aware, we declared 2011 the year of job creation through meaningful social transformation.
We called upon all government departments, all spheres of government as well as state-owned enterprises and development finance institutions, to ensure that they prioritise job creation.
It was therefore encouraging to receive the Quarterly Labour Force Survey for the third quarter of 2011 which reported that employment in South Africa had grown by 343 000.
With the official unemployment rate now being around 25%, having dropped from 25,7%, it means we have regained almost a third of the jobs we lost from 2008 to 2009.
It is also encouraging that the biggest growth has been recorded amongst the youth, the 25 to 34 years age group.
These figures may look like a drop in the ocean when one looks at the scores that still remain without jobs. However, for those individuals whose lives will be enhanced due to being gainfully employed, the statistics are most meaningful.
And for those who are still searching for jobs, all of us sitting here today are expected to be messengers of hope.
They want to hear us saying that the situation will improve and that they will get jobs to enable them to live a life of dignity.
To create jobs we need to accelerate economic growth. It is a tough call given that we are working in a difficult economic climate.
The Eurozone crisis and the general economic slowdown in the developed North are likely to adversely affect the South African economy.
Nevertheless, we continue to prioritise delivery on our priorities. These include job creation, quality education, quality health care, rural development and land reform and creating decent work.
To create an enabling policy environment for the creation of decent work, amendments were approved by Cabinet and are under consideration at NEDLAC to amend the following laws - the Labour Relations Act, the Basic Conditions of Employment Act, the Employment Equity Act and a new Employment Services Bill.
The amendment of the Basic Conditions of Employment Act is intended to further improve the working conditions of workers in civil engineering, hospitality, learnerships, taxi industry, contract cleaning, as well as domestic work.
These are some of the laws that make our people enjoy their Constitutional rights as workers, which they fought for over many decades.
Compatriots,
I would also like to brief you on some of the work we have already undertaken as government, especially with regards to taking forward our call to prioritise job creation.
We have learned some lessons from the recent economic recession where we lost close to one million jobs.
This taught us that we cannot just count on growth to create sustainable employment.
Rather, we have to strengthen the productive sectors that can create employment on a large scale, either directly or by supporting other industries.
For this reason, our New Growth Path identifies the jobs drivers – that is, the areas of the economy where we can create large-scale employment.
These jobs drivers are:
- Infrastructure
- The main productive sectors such as mining and agriculture, manufacturing, tourism and other value-adding services
- The public services and the social economy
- Rural development
- The knowledge and green economies, and
- African regional development.
All departments and spheres of government have been directed to work on boosting these job drivers as much as they can to support job creation.
They are doing this, and report to cabinet on a quarterly basis.
Another major initiative on our part has been the establishment of the Presidential Infrastructure Coordinating Commission or PICC, run by Ministers and Deputy Ministers, to ensure high-level and faster decision making within government.
We want to ensure that the roads, bridges, dams, airport upgrades and other critical infrastructure are built without delay to make our economy more competitive and to provide these much-needed services.
We have also committed ourselves to expand the Community Work Programme to a million employment opportunities in the coming two years.
This is a short-term measure to alleviate the hardship caused by joblessness, especially for the youth.
The programme is particularly important because, in addition to providing an income and training opportunities, it establishes structures that support community mobilisation and collective action.
In addition, to promote youth training, we have directed that the number of public-sector internships be increased to equal 5% of total public employment, or 60 000 positions, by 2013. This will expand the number of public internships more than tenfold.
Most young people are frustrated by the demands of experience when they look for jobs. These internships will help provide that exposure to the workplace and hold them in good stead when they search for formal employment.
We urge the private sector to also increase its intake of interns as agreed through the recent social accord signed with labour and government.
Ladies and gentlemen,
We are serious about the need for government to act swiftly to cut the notorious red tape.
In this regard, we have set up a task team under the joint oversight of the Department of Trade and Industry, National Treasury and the Economic Development Department.
The team will address blockages to major private investments and projects.
The blockages include unnecessary regulatory delays as well as access to infrastructure, or lack of financing. The task team has begun to develop a list of projects in collaboration with provincial and local governments as well as organised business.
As you would be aware, we are strengthening support for enterprise development, especially by improving government financing systems for small businesses.
The Directors-General of government departments are improving systems to ensure prompt payment by government of small suppliers.
When the SMMEs grow, they will be able to employ more people and contribute to our goal of employment creation.
There are a lot of other activities that we are busy with. I know that social partners have been meeting to discuss a report back session soon. I look forward to hosting a joint dialogue with business and labour in a few weeks’ time.
We need to close this year on a high note, having succeeded to work together to achieve a lot during this year of job creation and economic transformation.
I am optimistic because our goal of working together has become a reality.
We wish FEDUSA a successful and productive 5th national congress.
I thank you.
