M Mdladlana on National Union of Leather and Allied Workers

Casualisation poses threat to strength of bargaining
councils

21 September 2007

Casualisation is posing a major challenge to the growth of trade unions
resulting in the declining strength of bargaining councils, labour Minister
Membathisi Mdladlana told workers in George, in the Western Cape, today.

He was speaking at the ninth biennial congress of the National Union of
Leather and Allied Workers (NULAW). "Increasing casualisation of workers has
meant that the capacity of labour to organise is gradually being weakened. This
has a direct impact with more and more bargaining councils being less
representative. When this happens, collective bargaining agreements cannot be
extended to non-parties. A quick scan of bargaining councils shows that the
trends are going downwards. To illustrate the point, in the building industry,
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 going down from 48
percent in 2002 to the present levels of 43 percent" the Minister said.

Minister Mdladlana said globalisation has had a major impact on the strength
of trade unions by placing more emphasis on trade liberalisation and the
relocation of production to lower-wage economies. "In 2000, you acknowledged
that the fall in production and employment in the footwear industry was due to
among others, the demands for a flexible labour market and liberalisation of
the economy" he said.

The Minister said the future lay in finding ways of holding on to the
current membership while at the same time being creative in recruiting new
ones.

"Due the changing nature of employment, the ball will remain squarely in
your court to stay ahead in the representivity race. The representivity of
parties to bargaining council remains the most challenging requirement for the
bargaining council system to survive." he said.

Turning to employment equity, the Minister said: "The International Labour
Organisation has said 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. Rather, it is an attempt
to diffuse this ticking time bomb. This means those who say we must throw away
our employment equity must be careful of this time bomb exploding in their
face. Similarly, those who say we must exclude white women from employment
equity must remember that all women according to Employment Equity are defined
designated groups."

Enquiries:
Zolisa Sigabi
Departmental Spokesperson
Cell: 082 906 3878

Issued by: Department of Labour
21 September 2007

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