THE ROLE OF UNIONS IN THE TOURISM INDUSTRY

Portfolio Committee on Tourism in the National Assembly

18 September 2013Presented by TUSA (Tourism Union of South Africa)

DEFINITION OF A TRADE UNION

An organisation based on membership of workers, the main focus being the representation of its members at the workplace and in the wider society.

It seeks to advance its interests through the process of lawmaking and collective bargaining.

RIGHTS OF WORKERS

The International Labour Organisation (ILO) Declaration on the Fundamental Principles and Rights at Work (1998) determines freedom of association and the effective recognition of the right to collective bargaining as two of the main principles and rights of all parties.

In RSA these rights are promoted and regulated by the Labour Relations Act (LRA) of 1995.

LAWS REGULATING TOURISM WORKERS

Labour Relations Act (LRA)Basic Conditions of Employment Act (BCEA)

Other Acts in TourismNational Road Transport Act (Part 2, S. 80 – 84)Tourism ActAlso Tourism Bill currently under discussion

FEATURES OF LRA

The promotion of orderly voluntary collective bargaining, particularly at sectoral level.

No general duty to bargain collectively.Mechanisms were created to encourage

collective bargaining and with the absence of unions these mechanisms cannot be used.

FEATURES OF BCEA

Regulates working conditions including working hours.

Defines an employee and establishes the rights of an employee.

Defines the employer-employee relationship.Establishes the right of a worker to conciliation,

mediation and arbitration.

FEATURES OF TOURISM INDUSTRY

An export oriented service sector characterised by export consumption within the host country.

Labour intensive and relatively low skills levels.Low ratio of investment to job creation thus jobs

could be created in a short space of time.Consumption of export services in a domestic

environment enables economic growth.

GLOBAL VIEW OF TOURISM

World Travel and Tourism Council (WTTC) claims tourism to be the world’s largest sector with annual revenues of USD500bn.

About 340 million people are directly and indirectly employed in the tourism sector.

The industry accounts for roughly 35% of services exports and 8% goods exports.

In 2012 one billion arrivals were recorded worldwide (Min. M. van Schalkwyk at Etourism Africa Summit held at CTICC 9/10 Sept. 2013)

REALITY OF TOURISM IN RSA

In Cape Town the tourism industry employs roughly 34500 permanent employees and 15000 temporary employees.

The majority of jobs in 2012 were created in the unskilled and semi-skilled categories (19000 permanent and 12000 temporary).

Direct spend between 2009 and 2012 amounted to 5.6% growth (2009 = R12.46bn; 2012 = R14.6bn and 2010 spiking at R16bn)

Source: Grant Thornton 2013

REALITY OF TOURISM IN RSA

In 2009 the industry contributed 7.9% (R189.4bn) towards GDP. Government aims to increase this contribution to R499bn in 2020.

1 in 12 jobs are supported by the tourism industry.

The industry is largely unregulated and not organised.

REMOVING BARRIERS FOR TOURISM GROWTH

Freedom of Association is guaranteed in our constitution (Ch.2 s.18) thus it makes business sense to organise the industry with both employers and employees.

An organised industry allows for regulation and orderly participation in economic affairs.

When unregulated, an industry is prone to unforeseen and reactive behaviour and possibly creating negative influences.

REMOVING BARRIERS FOR TOURISM GROWTH

Through unions, the balance of power is equal between employees and employers (workers and management).

Potentially, this results in mutually beneficial collective bargaining, thereby retaining inherent conflict at manageable levels and creating an orderly, proactive industry.

HOW DO WE MOVE FORWARD?

• Market the union as a responsible union not concerned with destabilising industry.

• Draw membership from various sectors within the tourism family.

• Engage with stakeholders in the broader tourism community.

• Establish an environment for responsible, voluntary collective bargaining.

Tourism Work Group: Western Cape - Tourism Work Group: Western Cape - MembersMembers

Work Group

TUSAOGAT

OCTGA

Tourism Work Group: Western Cape - Tourism Work Group: Western Cape - aimsaims

AIMS

• Self-regulation within industry• Better working conditions• Professionalism• Standards via Code of Conduct• National roll-out

Tourism Work Group: Western Cape – Tourism Work Group: Western Cape – frames of referenceframes of reference

Frames of Reference

LabourTUSA

MarketingCTGA

OGATO

DMCsAssociations

Tour operatorsRep. Bodies (CTT

etc)

Working ConditionsIllegal Guiding

PenaltiesBCEALRA

TOURISM ACT

Tourism Work Group: Western Cape - Tourism Work Group: Western Cape - issuesissues

• Labour Issues• Working Conditions• Illegal Guiding• Penalties• BCEA• Labour Relations Act• Tourism Bill• Road Transport Act

• Marketing• Associations• DMCs• Tour Operators• Representative Bodies

(E.g. CTT)

Tourism Work Group: Western CapeTourism Work Group: Western Cape

Tourism Work Group: Western Cape - Tourism Work Group: Western Cape - challengeschallenges

CHALLENGES

• Different bodies working against one another• Definition of tourism sector• Pirate labour dilutes the industry• Registration of guides to Union and Associations• Lack of awareness about guides.

Tourism Work Group: Western Cape Tourism Work Group: Western Cape consultation & reportingconsultation & reporting

ConsultReport

Business

Labour

Other

Government

WHAT CAN THE UNION ACHIEVE

WHY IS THE UNION IMPORTANT?

• Ensure that voluntary collective bargaining happens in an orderly fashion.

• Promote active citizenry allowing development and democracy to flourish.

• Assist in establishing skills development training thus allowing for continuing professional development and providing opportunities for advancement.

WHY IS THE UNION IMPORTANT?

• Build democracy by allowing the better functioning of the labour market.

• Stimulates faster economic growth by providing a supportive environment for growth and development.

• Stabilises the labour environment by strengthening dispute resolution institutions.

• Enables the introduction of standards and encourages adherence to minimum standards.

THANK YOU

Jeremy HowardTUSA (Tourism Union of South Africa)

tusatreasurer@gmail.com