HALTON CHEADLECCMA 15T H ANNIVERSARY – THINK TANK

10 NOVEMBER 2011

The Vision for the Post-1994 Labour Market

PRESENTATION OUTLINE

The challenges at the time

Policy and legislative responses

Vision for the post-1994 labour market

CHALLENGES

The new government faced a terrible legacy of extreme inequality and high unemployment

mass unemployment and poverty

discrimination and inequality

intense conflict at the workplace

low levels of productivity

shortage of managerial and technical skills required to drive an economy

Sluggish employment growth

economy increasingly open to international competition

POLICY & LEGISLATIVE RESPONSES

Constitutional rights

RDP’s employment related objectives

Policies underlying the LRA

NEDLAC Act

Labour Market Commission (Presidential Commission to investigate labour market policy (Report in June 1996)

EEA, BCEA, SDA

THE RDP’s VISION

Eradication of poverty through “more and better” jobs

Worker participation

The elimination of racial and gender-based discrimination in the labour market

Productivity enhancement

A stable macroeconomic environment

LABOUR MARKET COMMISSION

Terms of reference

To develop labour market policies to meet the RDP

Voice regulation at all levels

Balance between labour market security and flexibility

National Productivity Accord

Productivity-enhancing work organisation

Institutionalised co-ordination

THE EMERGENCE OF A POST-1994 VISION

“Regulated flexibility”

A growth path with job creation and strong economic development

Increased private sector investment to underpin employment growth including the IDC’s development finance and support measures for small, medium and micro-enterprises

Labour market policies co-ordinated with macroeconomic policies by means of a national Accord for Employment and Growth involving all of the social partners

Macroeconomic, industrial and trade policies that promote employment and do not focus only on driving down inflation

THE POST-1994 VISION

Management of global competition - increasing efficiency in the utilisation of domestic resources, both labour and capital, as the basis for effective engagement in international markets

Reforms in the labour market to promote flexibility, where flexibility is understood as a multi-faceted concept that is not merely a euphemism for lower real wages or weak unions

Protection of individual rights and labour market security

The balance between flexibility and security achieved through the mechanism of voice regulation - bargained arrangements between strong, stable and well-informed employer and employee representatives

THE POST-1994 VISION

Promotion of collective bargaining

Institutional framework

Nedlac

Sectoral bargaining through bargaining councils

Workplace forums

THE POST-1994 VISION

Employment equity – affirmative action without quotas but the emphasis on the role of collective bargaining and participatory workplace structures in developing employment equity plans

Skills development with recognition of prior learning

Workplace-based training with transportable skills and qualifications

THE VISION FOR NEDLAC

Policy-making at the highest level

Consensus based

Tripartism

A forum for negotiating legislation prior to normal legislative processes

Demarcation of sectors

THE LRA’S VISION

Social justice and economic development

Freedom of association

Organisational rights to stabilise union organisation

Promotion of collective bargaining – both at workplace and sectoral level

Establishment and consolidation of bargaining councils

Framework agreements at sectoral level

Productivity bargaining at plant level

Less adversarialism and meaningful consultation at all levels

THE LRA’S VISION

Speedy dispute resolution with the emphasis on meaningful consensus-seeking approaches

Recognition of the right to strike with relatively non-technical processes to follow

Interest arbitration of essential services disputes

Relative labour peace – no strikes over dismissals and thorough mediation before strike action

Codified, clear law on unfair dismissals with final and binding arbitration; limited grounds for review

Limited concept of the unfair labour practice

Simple workplace disciplinary processes

QUESTIONS

Why have we not achieved more consensual, rather than less adversarial engagements?

Has NEDLAC succeeded as an effective tripartite institution?

Is collective bargaining playing a constructive economic role

Is there sufficient progress on productivity and skills development?

Is it too easy to strike?

Is it too easy to refer disputes?

QUESTIONS

Why have unions not followed organisational and strategic approaches to changes in the labour market?

What is the scope for job creation agreements, perhaps with lower wages for new entrants?

What role can the CCMA play to achieve the original vision?