Speaking notes of Deputy President Kgalema Motlanthe at the 2014 NEDLAC Annual Organised Labour Conference, Roodevallei, Kammeldrift, East Pretoria
Programme Director,
Leadership of Trade Union Federations.
Thank you very much for inviting me to share with you, views and experiences in dealing with issues in the mining sector and to really give an economic outlook which focuses on the mining sector.
The mining sector in our country has been in turmoil and in some instances there has been lots of loss of life. Many people including investors and rating agencies were of the view that mining industry is on a decline. I was then asked by the President to try and bring all relevant stakeholders in the mining sector to try and bring some stability.
In the main my task was to try and ensure that mine workers exercise their bargaining rights without fear of victimisation and that organised labour movements are able to embark on their activities free from violence. In this regard, we had to bring everybody together around the table to agree on path to restore stability in the mining sector.
The mining sector has over the past century played a key role in South Africa's economic development is a matter of record. The sector accounts for roughly one-third of the market capitalisation of the Johannesburg Stock Exchange.
Mining industry is a critical earner of foreign exchange and makes up 40 per cent of South Africa's export basket. Its linkages with the manufacturing and services sectors are strong and have over the year created excellent opportunities to export mining equipment and mining related services to various jurisdictions.
Mines employ 2.9 per cent of South Africa's economically active population, which translates to more than half a million direct jobs. Since the onset of the global financial crisis, the global economy has been going through challenging times and the global mining sector has not been immune to these problems.
More recently slowing growth in China, the decline in commodity prices as well as domestic work stoppages has resulted in lower growth for South African mines. Government is determined to do everything possible to strengthen this sector in these difficult global economic conditions.
It goes without saying that our economy is affected by these conditions and this effect will in turn affect many other facets of our nation. In view of the negative global and national economic conditions, it is important that challenges affecting national interests are dealt with through broad consultation with the aim of building consensus as the basis for socio-economic stability.
Current government efforts to engage with all stakeholders to heighten awareness about the volatile state of our economy in the light of the urgency of the issues emanating from the mining sector should be understood in this context. All stakeholders should continue to engage actively with local and foreign investors in a structured and coordinated manner to ensure that South Africa remains an attractive investment destination.
Consistent with this approach, government organised labour and business signed the Framework Agreement for a Sustainable Mining Industry to ensure sustainability of the mining sector for the future of South Africa's economy.
The parties to this framework agreement committed themselves to improving processes and procedures as well as implementing new measures that will bring about lasting change, while working together to sustain and improve the sector. In terms of the Framework Agreement, Government, organised labour and organised business made a firm commitment to work together to restore peace and stability in the mines.
Our collective understanding of The Framework Agreement is as follows:
- An important step towards strengthening and stabilising the mining sector is ensuring that peace and stability prevail so as to create an environment conducive to development
- Workers and managers must go to work without fear that anyone would harm them. Workers must be free to exercise their Constitutional right to join any trade union of their choice, to declare disputes, to strike and to engage in any form of peaceful protest
- Both workers and employers must ensure that all matters pertaining to labour relations including union recognition agreements, verification of membership and wage negotiations are conducted within the Labour Relations Act, which lays the primary foundation for labour relations in South Africa
- Government will act decisively to enforce the rule of law, maintain peace during strikes and other protests relating to labour disputes and ensure protection of life, property and the advancement of the rights of all
- There is an emergent appreciation that stakeholders in the mining sector must build a relationship that is based on trust and respect and avoid any actions that adversely affect this relationship.
Programme Director,
In the history of some industrial societies labour and business have been known to come together to forge a common vision in the interests of their nations. In this regard, labour and business seek to enter into mutually beneficial relations not because they have forsaken their partisan interests but because they need each other.
At the end of the day the country's people need decent, sustainable jobs, just as business needs to maximise profits and to survive. Granted that there is intrinsic contradiction in this scenario of labour and capital; however, these contradictions can be managed and minimised in a way beneficial to all stakeholders.
Industrial action has to take place conscious of this broader understanding. If, however, intransigence wins the day, such that both labour and employers dig in their heels on annual basis, relations can only go from bad to worse, much to the disadvantage of everybody else. I therefore wish to reiterate the need for us to consolidate social dialogue as the guiding principle.
Social dialogue opens up space for all key players to make a contribution, bringing on board their unique insights even as it recognises existing mechanisms for resolving disputes. With this in mind I remain confident that organised labour, organised business and government will continue to valorise social dialogue and as the primary basis for the building of unity, democracy, non-racialism, non-sexism, just and prosperous South Africa.
I thank you!
