Moegsien Williams, Editor of New Age and your team
The sponsors of the breakfast – the SABC and Transnet
Director-General and your management team
Executive directors of the CCMA, Nedlac and Productivity SA CEO
Esteemed guests
Ladies and gentlemen.
We thank you for affording us this opportunity to engage in conversation about the work the Department of Labour is doing to bring stability to the labour relations environment. This is an important topic that goes into the heart of economic health of our country, our region and to some extent, of the continent.
From the outset, it is important to note that South Africa remains, despite and in spite what doomsayers say, a prime spot for investment. His Excellency, the Honourable JG Zuma made the point in Parliament last week that international investors from countries like Japan are positive and they want to know more about the possibility of investing in our country. He went on to say that: “It is important to note that South Africa’s product markets perform relatively well in international comparisons. The World Economic Forum’s Global Competitiveness Report for 2012/13 ranks South Africa 32nd out of 144 countries in terms of its goods market efficiency, performing well across a number of indicators. We rank sixth for the effectiveness of anti-monopoly policy, and in the top 40 in terms of the extent of market dominance. We rank 31st in the extent and effect of taxation, 29th in the number of procedures to start a business, 39th in the prevalence of trade barriers and 32nd in buyer sophistication.
The mandate of the Department of Labour enjoins us: “To regulate the labour market through policies and programmes developed in consultation with social partners, which are aimed at: improved economic efficiency and productivity; employment creation; sound labour relations; eliminating inequality and discrimination in the workplace; alleviating poverty in employment; enhancing occupational health and safety awareness and compliance in the workplace; as well as nurturing the culture of acceptance that worker rights are human rights.”
In the five priorities of government, the department of labour answers to the imperative of contributing towards job creation and also to outcome four of decent employment through inclusive economic growth. As stated above, our main role is to create a climate that is conducive to economic progress under conditions of equity, freedom of association and the right of organise.
But we find ourselves operating in an environment that is not ideal. The effects of the economic meltdown are with us and will continue to be with us for the foreseeable future. This means that we are not creating jobs as quickly as we should because of the depressed trading environment. This calls for more creative ways of dealing with our pressing problems.
This conversation also takes place during a difficult time in terms of the unfolding scenario of our labour relations and challenges thereof. We all aware of the problems in the mining sector especially in the platinum belt. There were also difficult developments in the farming sectors and freight transport sector.
We see these challenges as opportunities – opportunities to learn, unlearn and relearn. We are drawing vital insight and lessons going forward. It is therefore our appeal to citizenry not to throw hands in the air on the basis of the challenges we are facing.
We are well aware that as this current year’s collective bargaining wage negotiation period commences, the dynamics of labour relations are rapidly changing. This means that we are likely to see a particularly challenging negotiation season with a higher likelihood for disputes.
Arising out of the recent and still unfolding mainly conflictual labour engagements the following trends are being identified; Whilst the current legislative framework promote self-regulation and voluntary forms of collective bargaining with significant rights ascribed to a majority union, recent events have been initiated by disaffected categories of workers, minority unions or emerging union.
In this environment social and economic justice is at the nexus of the current national discourse driving community involvement and public sentiment irrespective of the complexity and legalities of the collective bargaining framework.
Added to the complexity of the negotiations is the increased confluence of workplace demands and demands of the broader communities in which the workers reside as seen in both the recent resources and agriculture sector strikes. The uncertain and muted global economic environment is exerting pressure on both wage demands and offers, with the former being under additional upward pressure both in respect of workers expectations and as a strategic organising tool generally and in sectors with organised labour instabilities in particular.
The dispute resolution process is limited to resolving a dispute and will not necessarily address the underlying tensions that create instability at a workplace or sector.
Finally the broader polarisation and violence that has earmarked community protests is extending into and influencing behaviour during labour disputes contrary to the intentions of the Labour Relations Act that envisaged all parties to act upon their rights and responsibilities in an environment of industrial peace.
Recognising the strategic significance of this collective bargaining season, the Commission for Conciliation Mediation and Arbitration (CCMA) has coordinated a number of initiatives in preparation for the 2013 Collective Bargaining Season generally and in respect of high risk sectors in particular. Comprehensive guidelines have been developed for the screening, allocation and management of these types of disputes to ensure that matters are dealt with on a consistent and efficient basis.
In terms of the guidelines, these matters are screened separately from the caseload, allocated to selected Commissioners from an identified cohort of Commissioners that have been specifically capacitated to deal with such matters and managed closely from referral to closure. Regions have been specifically requested to submit weekly reports on referrals received and outcomes achieved regarding these matters in the mining sector.
We continue to learn and use some of the lessons acquired from key interventions in strategic economic sectors during 2012, and in particular the following:
Private Security Sector
The successful conclusion of the 2012 wage negotiations in the Private Security Sector, under the National Bargaining Forum that was established in 2009 with the assistance of the CCMA, marked six years of labour peace in this previously volatile sector.
National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI)
The deadlock in negotiations in the Road freight Industry led to protracted industrial action. The Minister took an active interest and with the CCMA’s intervention, parties reached a landmark multi-year agreement. An innovation in the agreement was the establishment of a Compliance Committee comprised of business and labour to supplement and oversee the Council’s compliance function.
Agricultural Sector - Farm Workers and Agri South Africa
The Director-General (DG) working closely with the CCMA was instrumental in setting up a process to resolve the dispute of largely unrepresented farm workers in the Western Cape that flared up in November 2012. A Sectoral Determination was subsequently promulgated that provided for an improved minimum wage of R105 per day for farm workers.
Mining Sector – Lonmin Marikana
The work beyond the headlines on Marikana fell on the hands of the department with the Minister driving a process in partnership with the CCMA that assisted parties in the Lonmin strike to establish a Peace Accord and subsequent agreement that resolved the unprotected strike.
The above proves that our country is still steeped in the art of negotiation and dispute resolution and for this reason, the Department of Labour in concert with other affected departments, has engaged organised labour and organised business in concluding a peace and stability framework for the mining sector, amongst are things. Talks are also continuing about the character of a new centralised bargaining arrangement in the platinum sector.
In response to the myriad of challenges, we think it is prudent to host a labour relations indaba where all stakeholders and role-players will talk about the future of collective bargaining and social dialogue. The department is working closely with NEDLAC and the Commission for Conciliation Mediation and Arbitration (CCMA) to ensure that from the ashes of Marikana and other hotspots, a nation united in the view of how it wants to deal with challenges of industrial relations will rise.
The Minister has started engaging the leadership of the Labour movement to discuss the adversarial nature of our Industrial relations. A few weeks ago, we met with Cosatu, Nactu, NUM and AMCU. In the interactions with them, I appealed to their sense of patriotism to say let us always put the interest of our country above all. What is the use of gaining all the members without a business to represent them in? It was a difficult meeting and I have tasked the DG to organise follow up engagement.
The department will also explore areas that present partnership possibilities such as capacity building and communication with the labour movement. For the collective bargaining institutions to work we need strong and sophisticated union organisations and strong employer bodies. The bulk of the troubles in the collective bargaining processes mirror the state of organisation in the parties that are involved.
As evidenced above, the Minister has sent out representatives to go and help parties in disputes. But it is not possible for the Minister, however willing, to become involved in every dispute which on its own carries the risk of undermining the very institutions that were set up to do this work and besides, it is not sustainable nor feasible.
We are one of the important players in the Presidential package of issues as which include matters of collective bargaining. Also, the minister is on record calling for peace in all protests and industrial action conducted within the framework of the law. The issue of unprocedural strike action and violence during strikes will also be dealt with at the Labour Relations Indaba or through processes that may arise from the Indaba.
The Platinum Industry Initiative Industry Stability Working Group has reached an advanced stage in discussion of a Peace and Stability Accord. As part of its deliberations, the Working Group has considered causes and effects of instability in the platinum sector and has proposed a set of solutions and actions.
This also resulted in the Framework for Peace and Stability in the Mining Industry on 25 February 2013 but as we know, it is touch and go with regard to commitment to implement this framework.
Last week, we tabled the Labour Relations Amendment (LRA) Bill and the Basic Conditions of Employment Amendment Bill in the National Assembly. The amended BCEA was adopted while the LRA was held in abeyance.
The main objective of the amendments to the LRA are to regulate contract work and sub-contracting, to address the problem of labour broking and to prohibit certain abusive practices in relation to labour broking.
New wording and new clauses are introduced at section 198 of the LRA. These will have the effect of:
- Introducing additional protections for vulnerable workers, that is, employees who earn on or below the threshold prescribed in section 6 (3) of the Basic Conditions of Employment Act (BCEA);
- Limit genuine temporary employment to a period of three months;
- Allow for the use of fixed term contracts for up to three months or for a longer period where there are justifiable grounds, and;
- Making provision for the regulation of part-time work.
The amendments to the BCEA also respond to the growing informalisation of work in the labour market and align the BCEA with the LRA in addressing labour broking.
The amendments also seek to bring the provisions relating to child labour in line with international standards and to strengthen the mechanisms for enforcement of basic conditions of employment, including wages.
On June 12, the world commemorated the International Day Against Child labour. As a department, we will be tabling the third phase of the Child Labour Programme of Action (CLPA). The third phase covers the period April 2013 to March 2017 and focusses on service delivery and implementation. The department is also commemorating a National Day Against Child Labour on 1st August 2013 not only to highlight the problem of child labour but also to create awareness about child labour in line with the international approach in dealing with child labour and its concomitant ills.
We continue to support, through prudent investments from UIF and CF projects that aim to create or save jobs.
We have also invested funds in the IDC continued their collaboration through the issuance of an additional bond of R2 billion which has increased the total bond to R4 billion. The IDC utilises these funds to lend out to businesses that aim to create or save jobs.
Through this partnership, 21 234 new jobs were created and 20 161 so far. This investment has increased from 5% to 10% of the total investment portfolio meaning that over R8 billion will be made available for investment in manufacturing, mining beneficiation, agriculture and tourism. We have allocated R3.2-billion to the Public Investment Corporation to plough into job creation projects, over and above the amount allocated to IDC.
In addition, the UIF will continue funding Productivity South Africa’s Turnaround Solutions – a three year R39-million a year agreement to assist companies in distress to save jobs and keep people in employment.
The branch Public Employment Services is one of the vehicles that we are using in contributing to fighting unemployment. We have just concluded a series of Jobs fairs and summits to all the provinces. These were designed to introduce prospective employers to potential employees. I would really like to encourage business to register their vacancies on our database.
We have 171 Employment Services Practitioners and 84 Employment Counsellor providing services at:
- Labour Centres - 125 Labour Centres, 72 out of 139 Thusong Centres and various visiting points
- Mobile trucks – 19
- Two mobile PES buses with internet connectivity
- Twelve Sheltered Employment Factories
- Productivity SA HQ and three Regional Offices
PES achievement and statistics
- A total of 600 259 work-seekers were registered on the system.
- 59 % of work seekers were profiled against a target of 60%
- 16 171 work seekers were placed against a target of 18 000
- A total of 396 172 work-seekers were referred against a target of 72 000
- A total of 2 620 companies registered vacancies on ESSA
- A total of 153 applications received were processed within 30 days. 108 were corporate permits covering 12631 employment opportunities of which 8320 were positively recommended. Out of 45 applications for individual work permit 32 were negatively recommended.
I hope the picture I have painted gives an insight into the kind of work that the department has been involved in in responding to the President’s call to get South Africa working. I also hope that it provides a basis for meaningful engagement this morning.
I thank you.
