FIFTEEN POINT PROGRAMME OF ACTION (1999-2004)

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FIFTEEN POINT PROGRAMME OF ACTION(1999-2004)
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INTRODUCTION

• This document outlines the main activities that
  the Department of Labour intends to pursue in the
  five years from 1999 to 2004.

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PART 1Approach to Labour Market policies

• Our approach to labour market policy is
  predicated on the belief that the labour market,
  while it has some inherited rigidities is
  sufficiently flexible primarily as a consequence
  of recent policy initiatives. Furthermore the
  labour market is not a barrier to employment
  creation and that the general direction of the
  reforms being introduced in the labour market is
  consistent with the imperatives of efficiency,
  flexibility, equity and improved welfare.

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Major problems in the Labour Market

• The high rates of unemployment and
  under-employment
• the low rates at which productive employment is
  being created in the economy
• the existence of widespread poverty among low
  wage earners, the underemployed and the
  unemployed

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Major problems in the Labour Market

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• the extreme level of inequality, primarily on the
  basis of race and gender
• the low levels of education, skills and
  investment in training
• the legacy of adversarial labour relations in the
  formal economy
• the inadequate protection for some low-wage
  earners such as farm and domestic workers.

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Functioning of the Labour Market and its
implications for Labour Market Policy

• The above problems need to be addressed in the
  broader context of the national vision to achieve
  democracy, full employment, equity and social
  justice, economic growth and international
  competitiveness.

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In this respect, the objectives of labour market
policy, which are reflected in the objectives of
the Department of Labour are to

• Create an enabling environment for the attainment
  of economic growth, social development, and
  increased efficiency, productivity and employment
• Promote stable and sound labour relations
• Enhance the development of skills
• Eliminate discrimination and inequalities in the
  labour market and
• Improve working conditions and social security
  benefits.

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The most vexing problem confronting government in
the labour market is that of the high levels of
unemployment and under-employment, the
determinants and solutions for which do not lie
solely within the labour market.

• There has to be compatibility between
  labour-market policies and a package of broader
  policies aimed at resolving many of the problems
  manifested in the labour market, but not
  necessarily and primarily caused by the labour
  market, nor restricted to it.

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Approach to Labour Market Policy

• The need to regulate the labour market in order
  to resolve inherited rigidities and
  inflexibility
• The need to promote labour market and overall
  economic efficiency
• The need to support and enhance employment
  creation
• The need to promote worker security, safety, and
  through maintenance of socially acceptable and
  mandatory and minimum conditions and standards of
  employment
• The need to promote participatory and
  co-operative industrial and labour market
  relations in the context of an institutionalised
  and regulated framework and
• The need to promote equity and skills in the
  labour market.

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This approach aims to forge a middle route
between the extremes advocated by those in favour
of unqualified labour market flexibility or
deregulation of the labour market, and those
advocating a more rigorous regulation of the
labour market.
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• On the one hand, it is felt that advocates of
  deregulation and labour market flexibility
  understate the nature of inherited rigidities and
  inequalities that are built into the labour
  market and are not sensitive to the poor
  conditions of work in many sectors in which
  disadvantaged employees work, such as
  agriculture, security and domestic work.
  Furthermore they underestimate the social and
  private costs of a highly deregulated labour
  market in the specific circumstances of South
  Africa.

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• On the other hand, it is necessary to be
  cognisant of the costs to the economy and
  government of attempting to over-regulate the
  economy in the manner proposed by some. These
  costs would entail increases in costs of
  production the discouragement of foreign
  investment the increase in administrative costs
  to government the possible loss of jobs and the
  possible triggering of a wage/price inflation
  spiral.
• A middle route between the two extreme views is
  therefore seen to be the desirable one.

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Broader policy requirements for Labour Market
Policies

• The Department recognises that many of the
  problems in the labour market, such as the high
  rate of unemployment cannot be addressed by
  labour market policies alone. However, the
  Department of Labour is responsible for the
  effective functioning of the labour market.

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• Thus many of the significant problems in the
  labour market can only be solved by a package of
  measures originating from a number of government
  Departments, in addition to being driven by the
  actions of the private sector.
• Some of the areas that require co-ordination or
  that need to be complemented by other policies
  are listed below

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Continue .

• There should be proper co-ordination of economic
  and social policies, especially the need to
  harmonise macroeconomic policies, supply-side
  trade and industry initiatives, social and
  economic infrastructure policies, and
  labour-market policies in a manner that maximises
  their impact on the problems at hand
• There should be bold developmental initiatives at
  the industrial, sectoral, regional and national
  levels in the context of the Employment Strategy
  agreed upon at the Jobs Summit of October 1998 as
  the basis for inclusive and equitable economic
  growth
• .

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Continue .

• There should be a comprehensive social security
  policy so that a social safety net exists to
  underpin flexibility and adaptability in the
  labour market. This should include social plan
  measures to ameliorate the impact of massive
  retrenchments occasioned by the restructuring of
  the economy and at rehabilitating communities
  economically depressed by such massive lay-offs
  
• Migration policy should be humane, and made
  progressively liberal and compatible with
  international conventions and recommendations,
  and should be managed in a manner that is
  compatible with demand and supply of skills for
  the country and its regional obligations.

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Continue .

• There should be a common approach to occupational
  health and safety by establishing closer
  co-operation with the Departments of Health,
  Minerals and Energy and Environmental Affairs and
  Tourism.
• There should be a comprehensive human resource
  development strategy co-ordinated between the
  Departments of Education and Labour.

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Objectives of Labour Market Policy

• In the context of the above, labour market policy
  has been guided by the following objectives
• The need to ensure that labour-market policies
  contribute to the realisation of the vision of
  government and that they are aligned with the
  broader policies of government
• The need to extend coverage of labour-market
  policies and institutions to all sections of the
  labour market to redress the apartheid legacy and
  to ensure equity in the context of an increasing
  number of atypical work relationships

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Objectives of Labour Market Policycontinue ..

• The need to ensure that labour-market policies
  promote economic growth and dynamic and
  allocative efficiency in a manner that
  contributes to greater employment generation in
  the economy and greater protection and security
  for the workforce
• The need to resolve inequalities in the labour
  market and promote representivity of previously
  disadvantaged groups, especially with respect to
  skills training, and improved work conditions
  and
• The need to upgrade, deepen and broaden the
  formation and utilisation of skills throughout
  including small, medium and large-scale
  enterprises.

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Strategic Approach

• The promotion of labour-market efficiency within
  a regulated framework that allows for variability
  with respect to wage determination, work
  processes, and the utilization of labour in a
  manner that is compatible with security

• The promotion of voice regulation through
  participatory labour-market institutions,
  co-operative labour relations and collective
  bargaining
• The implementation of a preventative strategy
  that will reduce the burden on administrative
  monitoring, inspection and enforcement and that
  will empower social partners to pro-actively
  participate in the execution of the strategy

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Strategic Approachcontinue ..

• The rationalisation and integration of related
  activities and services such as inspection
  services and those offered by labour centres and
• The need to provide efficient and easily
  accessible services to clients of the Department
  through reform of the bargaining council system,
  establishment of one-stop service centres
• The delivery of high quality employment services
  and the promotion of skills development

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FIFTEEN POINT PROGRAMME OF THE MINISTRY OF LABOUR
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Introduction
The first five years of democratic rule in South
Africa have been characterised by an extensive
programme of transformation of the labour market.
In the period from 1999 to 2004 we intend to
consolidate the advances made and ensure that our
vision for the labour market is successfully
implemented. In identifying our challenges, we
need to bear in mind the context in which we
shall be operating. On the one hand, the legacy
of apartheid discrimination and exploitation has
not yet been overcome and the process of
globalization may result in further
restructuring, retrenchments and attendant
increases in inequality and poverty.
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Introductioncontinue ..
On the other hand, there are at present
differences between the major labour market
players on the policy approach to the labour
market. Amongst the business community, a widely
held view exists that labour market reforms are
not aligned to the imperative of economic
efficiency. Whether this can be borne out by
reality is not necessarily relevant since it is
acknowledged that such negative perceptions
develop their own reality.
Amongst labour and community constituencies there
is an appreciation of the interventions made by
the Department of Labour. This is coupled with a
growing concern that some of the interventions
may not go far enough to address pressing
problems they face including continued high
income differentials, poverty among working
people and the constant fear of retrenchment and
job insecurity as well as high levels of
unemployment.
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Fifteen point programme
First, there is the need to strike an appropriate
balance between security and flexibility in the
labour market. While we believe that our
legislative framework in general reflects such as
balance...
Second, employment creation is the biggest
challenge facing government. The Departments
particular contribution to this challenge rests
with the formulation of effective and active
labour market policies as well as to provide a
supporting and enabling environment for jobs to
be created.
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Third, we shall ensure the effective and
efficient implementation of the resolutions of
the Presidential Job Summit in order to
accelerate job creation and tackle the scourge of
high unemployment.
Fourth, the skills deficit is one of the major
handicaps to the development of our economy and
is a discouraging factor to potential foreign
investors. With the policy framework now in
place, our focus will shift to ensure that the
skills development structures that are set up,
adequately and speedily respond to market demands
and imperatives.
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Fifth, in light of the persistent way that racial
and gender inequalities exist in the workplace
and contribute to the inefficient utilisation of
our human resources, the Department passed the
Employment Equity Act in 1998. The coming period
will focus on the effective implementation of the
Employment Equity Act as an important part of
Governments project to create an equitable
society.
Sixth, the state carries the responsibility of
protecting vulnerable workers to ensure that they
have the same basic rights and are afforded their
dignity. The Basic Conditions of Employment Act
is the principal instrument through which such
protections are extended. In the coming period
we shall focus on its effective and appropriate
implementation, bearing in mind the above
mentioned requirement to seek a balance between
security and flexibility.
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Seventh, there will be a need to introduce
legislative reforms that are intended to improve
the safety net to cushion those affected by the
countrys structural unemployment. This will be
done within a broad framework of the governments
social security system. Particular attention
will be given to the restructuring of the
Unemployment Insurance Fund in order to extend
coverage, contain costs and enhance compliance.
Eighth, to adequately deal with the negative
consequences of occupational accidents and ill
health on individuals, enterprises and the state,
we will accelerate measures aimed at reducing
accidents and improving the health and safety of
workers. This will occur, inter alia, through
achieving greater co-ordination of the
occupational health and safety instruments of
government.
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Ninth, evidence suggests that the interventions
introduced through the Labour Relations Act of
1995 have contributed positively to promoting
stable labour relations. The Department will
ensure that these gains are built upon and
consolidated in order to continue with the
downward trend in industrial conflict. Negative
and unintended consequences of the legislation
will also be addressed through legislative
amendments or institution and capacity building,
as appropriate.
Tenth, the Department shall build on the
initiatives already undertaken to promote
productivity. This will include promoting an
agreement between the social partners on
productivity as discussed at the Job Summit in
October 1998 and drawing on the experiences of
the Workplace Challenge and the National
Productivity Institute.
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Eleventh, the transformation of various statutory
bodies and the establishment of NEDLAC have
brought clear gains in policy development and
policy making. The challenge is to build on this
culture of dialogue and nurture the opportunities
for deepened social partnership.
Twelth, the Department will continue its efforts
to ensure that our country is fully integrated in
the international system. We intend to develop
adequate capacity and resources to influence and
shape international policies as developed by the
ILO and other relevant international institutions.
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Thirteen, the Department will improve its
capacity to monitor the impact of government
policy in regard to economic growth, employment
and development. This will assist in establishing
a more scientific basis for discussion on the
impact of governments labour market policies.
Fourteen, the major institutional restructuring
we have undertaken will have to be extended and
consolidated in order to ensure that the
Department of Labour is aligned to address the
above mentioned challenges and carry out the new
and expanded mandate that emanates from the
changed policy environment.
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Fifteenth, while the thrust of our policies will
remain the same, certain areas will receive
attention for possible legislative amendments to
improve the effective functioning of the labour
market and reduce what may be perceived to be
obstacles to employment creation.