NEDLAC BRIEFING TO THE PORTFOLIO COMMITTEE ON LABOUR

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NEDLAC BRIEFING TO THE PORTFOLIO COMMITTEE ON
LABOUR
NEDLAC WORK PLAN
JUNE 2009
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NEDLAC IN BRIEF
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OUR MANDATE
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MODUS OPERANDI
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STRUCTURE _at_ A GLANCE
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NEDLACS DELIVERY INSTRUMENTS
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SINCE ITS FORMATION, NEDLAC HAS
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• The Council is a representative and a
  consensus-seeking body where the parties to the
  Council
• will seek to reach agreement on policy matters
  through negotiation and discussion based on
• proper mandates.
• Nedlac is not
• The ultimate Law makers, but influence and shape
  the law.
• Law and Policy enforcement agency, but delegate
  that function to appropriate agencies or
  establishes them where appropriate.
• Collective bargaining agency, but provide the
  legal framework.
• Workplace dispute resolution agency, but provide
  the legal framework
• Implementation agency, but provide the
  legislative and strategy frameworks for that.

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PROCESS

• The tabling of issues in Nedlac
• GREEN PAPER
• WHITE PAPER
• DRAFT POLICY
• DRAFT BILL
• PARLIAMENT

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PROCESS

• Tabling of policy proposals is governed by an
  agreed Protocol for tabling and consideration of
  issues in Nedlac.
• Government tables its programmes of policy and
  legislation in Nedlac often at the beginning of
  the first quarter.
• Labour, Business and the Community constituencies
  likewise table their own policy issues for
  inclusion in the Work programme.
• Issues are tabled at least three months before
  sign-off is required however the Protocol has
  provisions for issues that require quicker
  sign-off.
• Parties agree at the outset whether the issue is
  being tabled only for consultations or
  negotiations, or both.
• Parties then agree on a process and timeframes to
  expedite the matter.
• In cases where the issue falls within the terms
  of reference of more than one chamber, a joint
  negotiation committee or task team is established.

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PROCESS

• There may also be instances where the
  intervention of the relevant Minister may be
  required.
• In the event that Government indicates that
  giving effect to the policy require legislation,
  then Government tables the draft Bill at Nedlac
  for consideration.
• Once the process of engagement on the policy has
  been finalised, a Nedlac report is prepared for
  ratification by the Nedlac Executive Council.
• The Nedlac report, after sign-off by the relevant
  Nedlac Executive Council, is sent to the relevant
  Minister who in turn tables it in Parliament.
  (The copy of the report is also sent to the
  Minister responsible for Nedlac)

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PROCESS

• Parties are bound not to re-open discussion in
  Parliament on any area where agreement was
  reached in Nedlac.
• However parties have the right to raise issues in
  Parliament on which there had been no agreement,
  or on which a Nedlac agreement was silent.
• If parties raise issues during the Parliamentary
  process on which the Nedlac agreement was silent,
  or new issues, which go beyond the reservations
  captured in the Nedlac report, they inform Nedlac
  of such issues for the record.
• Nedlac does from time to time get given an
  opportunity to brief relevant Portfolio
  Committees on the Nedlac report, albeit on an
  adhoc basis.

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SCOPE OF ISSUES ON THE WORK PROGRAMME
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FRAMEWORK FOR SOUTH AFRICAS RESPONSE TO THE
INTERNATIONAL ECONOMIC CRISIS

• National Framework for South Africas Response to
  the Global Economic Crisis
• Leadership Team
• Employment Measures Task Team
• Finance and Investment Task Team
• Social Policy Task Team
• Distressed Sectors

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TERMS OF REFERENCE FOR THE LEADERSHIP TEAM

• Funding mechanisms, including proposal for a Jobs
  Fund and Integration of different mechanisms.
• Infrastructure funding including Development
  bond
• High Level Engagement with the CEOs in the
  financial sector
• Trade policy tools, with specific reference to
  the issue of applied and bound rates
• Local procurement
• Consideration of what can be done to avoid early
  or unnecessary resort to retrenchment

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TERMS OF REFERENCE FOR THE LEADERSHIP TEAM

• To deal with broader issues in the Framework such
  as
• Macro-economic issues, including
• Monetary Policy
• Addressing the Balance of payments constraints
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• Global coordination G20, IMF, WB, WTO, ILO

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TERMS OF REFERENCE FOR THE FINANCE AND INVESTMENT
TEAM

• How to ensure that at least R787 billion is
  raised for the public investment programme and
  spent in projects with the largest social,
  employment and economic return
• Develop Proposals to fast-track the public
  investment programme
• Define the Role of DFIs in public investment
  programmes
• Identifying additional sources of funding
• Identify Priorities, financing and capacity
  constraints
• Engage the financial sector on the flow of credit

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TERMS OF REFERENCE FOR THE EMPLOYMENT TEAM

• Develop Proposals to avoid early or unnecessary
  resort to retrenchments
• Address Public sector related issues in the
  Framework
• Expanded Public Works Programme
• Training layoffs
• SETAs
• Labour broking and outsourcing
• Social plans
• Unemployment Insurance Fund (UIF)

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TERMS OF REFERENCE FOR THE DISTRESSED SECTORS TEAM

• Sustainable local procurement
• Fast-response mechanisms for companies in
  distress
• Sectors in distress and strategic responses to
  them
• Sectoral coordination
• Electricity pricing/rationing and its Impact

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TERMS OF REFERENCE FOR THE SOCIAL POLICY TEAM

• Emergency Food Relief Programme
• Food for All programme
• Cost-drivers in the food chain
• Competition measures to address food prices
• Investigate Community-based food production on a
  mass scale
• Fast-tracking spending on Fund for Social Relief
  of Distress
• Social transfers, the child grant and old age
  pensions
• Role of cooperatives, support measures, funding
  and regulation

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TRADE, INVESTMENT AND INDUSTRIAL DEVELOPMENT
POLICY WORK STREAM

• Review of the Development Finance Institutions
  mandates.
• Fast tracking the finalisation of the
  Cooperatives Strategy and the Implementation
  Plan.
• Enhancing the role of Multi National Companies in
  the African Continent
• Targeted Procurement for small Enterprises
• Trade monitoring and illegal imports
• Bilateral and Multilateral Trade Negotiations
• WTO Trade Policy Review
• European Economic Partnership Agreement (EPA)
• Defining the link between Industrial Policy and
  trade Policy
• SADC-EPA
• Nedlacs Role in MOUs

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TRADE, INVESTMENT AND INDUSTRIAL DEVELOPMENT
POLICY WORK STREAM

• Customs Act
• ITAC Act
• Trade and the Environment
• Medicines and Related Substances Bill
• Land reforms and agriculture
• Fisheries Policy
• National Health Insurance Scheme
• Labour Broking and the Atypical Forms of
  employment
• Decent Work Country Programme
• Compensation Fund Bill
• Merchant Shipping safe containers Convention Bill
• Research and Development

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Trade Investment and Industrial Development
Policy Workstream
Key Focus Area Key Performance Indicator Measurement Timeframe Action  
A. Industrial Policy A. Industrial Policy A. Industrial Policy A. Industrial Policy A. Industrial Policy A. Industrial Policy
Labour-intensive sectors Identification of priority sectors and interventions Recommendations and way forward from Research Session July 2009 Consideration of the Recommendations from the study  
Industrial Development Financing Policy discussion at Strategic Session (with Deputy Minister) Nedlac reports Consideration of individual incentives Immediate Task team on the Global Economic Crisis  
Cooperatives Strategy Nedlac report outlining programmes for the implementation of the Cooperatives Act. No. 14 of 2005 Strategy to be presented to NEDLAC once approved by EXBO Govt Programme of Action Complete the Nedlac engagements on the Strategy  
B-BBEE Nedlac report on alignment of Codes to preferential procurement policy Report on alignment of areas of NEDLAC agreements and gazetted Codes Impact review Finalise Nedlac engagements on alignment. Awaiting results of Government impact review Government to provide list of initiatives in BBBEE with timeframes  
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Trade Investment and Industrial Development
Policy Workstream
Key Focus Key Performance Indicators Measurable/Indicator Timeframe Action
B. Trade strategy B. Trade strategy B. Trade strategy B. Trade strategy B. Trade strategy B. Trade strategy
Trade Monitoring Illegal imports Tighten Customs legislation Curb illegal imports and under-invoicing Immediate Task teams on the Global Economic Crisis  
IPAP Initiate engagements to address the gaps in the IPAP Accelerate the implementation of the Plan in order to curb de-industrialisation Govt Programme of Action Engage the Results and recommendations of the govt initiated review of the plan  
EPA Develop the countrys strategic approach on EPA Safeguard the interest of the customs Union and the region February 2009 Monitor implementation  
Link between Industrial and Trade Policy Standing item on Strategic Session Agenda Fridge Study report for June 2008 Strategic Session Every June and November Convene the Ministerial Policy session  
 
C. Legislation C. Legislation C. Legislation C. Legislation C. Legislation C. Legislation
Customs Act Nedlac Report Awaiting finalisation of Cabinet Process  
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Trade Investment and Industrial Development
Policy Workstream
Key Focus Key Performance Indicators Measurable/Indicator Timeframe Action
ITAC Act Anti-dumping Regulations Initiate engagements to tighten the ITAC regulatory framework on anti-dumping Responsive and timely response to anti-dumping practices March 2009 Task teams on the Global Economic Crisis..
Preferential procurement Regulations Develop an agreed policy framework to promote SMMEs Create an environment which promotes SMME development. Immediate Task teams on the Global Economic Crisis..
TRADE AND ENVIRONMENT NEDLAC position on the approach to be adopted in addressing issues relating to Multilateral Environmental Agreements. The Fridge study on the MEAs was commissioned and completed in 2007. constituencies are in the process of finalizing the Nedlac report of the MEAs. Develop a framework to address the challenges and implications of the MEAs
SERVICES TASK TEAM To develop a national position towards the liberalisation of Trade in Services. Constituencies to develop their understanding of Article 1.3 and XIII of the GATS. Nedlac to engage with such understanding with the view of reaching a common understanding Reach a common position on the countrys approach to the services in the multilateral trade system.
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Trade Investment and Industrial Development
Policy Workstream
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
WTO Develop the South African position towards the WTO trade negotiations Undertake a Fridge study to concretise SAs position with regard to the coefficient, anti concentration clause, flexibilities and sectorals Report End of May 2009
SACU-EFTA To have a common NEDLAC position and approach to the adopted in the SACU-EFTA trade negotiations Undertake road shows to publicise the agreement Workshops July 2009
SACU-MERCOSUR To have a common NEDLAC position and approach to the adopted in the SACU-MERCOSURE trade negotiations Prepare for the implementation of the agreement. The implementation of the agreement will commence January 2010. Implementation plan 2010
WTO Trade policy review For SA to practice transparency process amongst all the member states Government to circulate documents to constituencies September 2009
SACU- India To have a common NEDLAC position and approach to the adopted in the trade negotiations with India Finalise SACUs list of products of export interest. Next negotiation meeting with India scheduled for 1st week of May 2009 Technical task team to finalise the offensive list was established and will met on 05 May 2009
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Trade Investment and Industrial Development
Policy Workstream
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
SACU- China To have a common NEDLAC position and approach to the adopted in any future the trade negotiations with China Government to provide On going
SADC EPA Nedlac agreement on the position and approach to be adopted in the SACU-EU TDCA Review trade negotiations, as well as on an EPA. Government to make the draft text that would be initialed by SACU and the EU On going process where government to keep constituencies abreast with the negotiations
SADC Trade Protocol To have a common NEDLAC position and approach to be adopted in the trade negotiations within the region Monitoring developments regarding the protocol and FTA On going
DEVELOPMENTS IN SACU Share information on the role and functions of the Secretariat as well as the functions of Nedlac Convene a workshop with the SACU Secretariat to share information on the functioning of Nedlac and the SACU Secretariat Workshop ASAP
NAMA TASK TEAM Nedlac position on the approach to be adopted in market access for industrial goods at the multilateral (WTO) trade negotiations Finalise approach with regard to negotiations with India, Commission Fridge study Nedlac Report May 2009
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LABOUR MARKET POLICY WORKSTREAM

• Social Plan Review
• Insolvency Bill
• Labour Court Rules
• Immigration Act
• Employment Equity
• Superior Courts Bill
• Labour Market Policy Review
• Decent Work Country Programme
• Skills Development
• Human Resource Development Strategy South
  Africa
• Towards a Comprehensive Social Security for South
  Africa
• Job Creation and job retention
• Section 77 Notices (Standing Committee)
• Demarcation Disputes(Standing Committee)

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Labour Market Policy Work Stream
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
Demarcation Make recommendations on demarcation issues tabled before the Demarcation Committee Consider applications as and when forwarded by the CCMA to the Nedlac Secretariat 21 days in line with the protocol Follow the procedure once applications are sent to NEDLAC.
Insolvency Bill Complete a Nedlac report with maximum areas of agreement. Consider the Bill presented by the Department of Justice with the focus on insolvency of individuals, partnerships and trusts Dec 2009 Finalise draft NEDLAC interim report. Submit report to the plenary task team and then to LMC and Manco for sign off.
Social Plan Review Companies Act (Business Rescue Provision) Complete a Nedlac report with maximum areas of agreement. Review the existing social plan to give it relevance and timely intervention. 31 July 2009 Convene a task team meeting. Finalise the new draft Social Plan agreement. Draft Nedlac report. Submit to LMC and Manco for sign off.
Human Resource Development Strategy South Africa To finalise consultations on the HRDS at NEDLAC To engage on the structure of the HRD Council. Ensure that views of social partners are collated sent to the relevant Govt convenor for consideration to be tabled before Cabinet. Discuss the structure of the HRD Council March 2009 Dec 2009 Ensure that the final draft is sent to social partners after Jipsa process for input, before tabling at Cabinet level. Ensure engagement by the social partners on the structure of the Council and develop a Nedlac Report.
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Labour Market Policy Work Stream
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
MANCO TASK TEAM
Changing Nature of Work in South Africa Complete a Nedlac report with maximum areas of agreement to ensure that the outcomes of the Nedlac engagements are in line with the Decent Work Country Programme (DWCP) To analyse and evaluate the trends, determinants and policy implications of atypical forms of employment Facilitate an integrated approach to the work of the task team in order to ensure that the outcomes are in synchronised with the DWCP. July 2009 Convene a task team meeting for discussions. Finalise a NEDLAC agreement.
Superior Courts Bill Get an agreement with the Minister of Justice on the proposals to address the Nedlac concerns on the SCB Facilitate engagement s with the Minister of Justice on the concerns raised by Nedlac social partners on the Bill. 30 July 2009 Nedlac representatives to address concerns with the Minister.
Labour Market Policy Review Complete engagements within the agreed timeframes and produce a Nedlac report. Develop an agenda that will form the basis for engagements in Nedlac. 30 Sep 2009 Convene a task team meeting. Develop an agenda. Finalise a NEDLAC report.
Decent Work Country Programme Leverage the ILO to carry out the Decent Work Country Agenda submitted to the ILO Develop a framework that will form the basis for engagements among the Nedlac social partners. Dec 2009 Engage with the ILO on submissions forwarded to the ILO.
SETA Review Produce a Nedlac Report on the recommendations following the NEDLAC commissioned study on Performance of SETAs. Complete Nedlac engagements on the Seta Review. July 2009 Place on MANCO agenda for further direction. Task team to be constituted to look into the recommendations emanating from the study. Finalise the NEDLAC report.
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Labour Market Policy Work Stream
Key Focus Areas Cross cutting Key Performance Indicators Measurable/Indicator Timeframe Action
Job Creation and job retention To focus on job retention strategies and sustainable livelihoods Facilitate Nedlac engagements on strategies Increase the skills pool Youth employment Dec 2009 Convene a 2-a-side task team to finalise the agenda that will form the basis for engagements
Companies Act (Business Rescue Provision) Assess labour market implications July 2009 Request a briefing from the dti on the business rescue provision
Social Security Produce a Nedlac report on the proposed Social Security System for South Africa. Facilitate Nedlac engagements on proposed Social Security Policy. Dec 2009 Convene a joint task team meeting. Engage Government regarding social security issues, including retirement reforms, social security and national health insurance. Finalise a NEDLAC report.
SECTION 77 Consider section 77 applications placed before NEDLAC. Consider applications within the relevant timeframes and procedure when lodged at NEDLAC. In line with the legislation and protocol. Follow the procedure once applications are lodged.
Global Economic Crisis To focus on the labour market implications of the crisis Effective response to the Crisis Immediate Task Teams on the Global Economic Crisis
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DEVELOPMENT POLICY WORKSTREAM

• Expanded Public Works (EPWP) Phase II
• HIV and Aids
• Public Transport
• Anti-poverty Strategy
• Food for All Programme
• Land Reforms and Agriculture
• Human Settlements
• EducationBasic and Higher Education Policy
  Framework
• Comprehensive Social Security
• Xenophobic Attacks
• Youth Policy

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Development Policy Workstream
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
Expanded Public Works (EPWP) Phase II To tie down the outstanding aspects of the EPWP Phase II Seamless and accelerated implementation of phase II June 2009 A high level meeting of the Nedlac principals to clear the remaining sticky points on phase II.
HIV and Aids To develop a Nedlac action plan to give effect to the HIV and AIDS National Strategic Plan. A joint targeted programme of Action by the Nedlac collective. September 2009 The Task team to expedite the finalisation of the Programme of Action.
Anti-poverty Strategy To finalise an agreed common platform for the implementation of the Anti-poverty strategy Accelerated Programme of Action that enjoys the broad support of all the social partners. July 2009 The Chamber to convene on an urgent basis
Public Transport To review progress in the implementation of the Public Transport Strategy To address the bottlenecks and the new challenges that have arisen with a view to find lasting solutions. Ongoing The Chamber to invite DoT to table an overview of the implementation of the strategy and identify challenges
Food for All Programme To address the challenge of rising food prices. To develop and agree on steps to be taken to arrest food prices in order to alleviate hunger. Immediate Task teams on the Global Economic Crisis
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Public Finance and Monetary Policy
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
Human Settlements Engage Government on national Strategy to address the Human settlements challenge in South Africa. A sustainable Human Settlement Plan for South Africa Government Programme of Action The Chamber to invite the Department to brief social partners on the Govt plans
EducationBasic and Higher Education Policy Framework Engage Government on the National Education strategy A plan that enjoys broad support from all social partners. A working partnership programme to deliver on the stated national objectives. Government Programme of Action The Chamber to invite the Department to brief social partners on the Govt plans
Xenophobic Attacks To develop a framework and action plans to prevent xenophobic incidents of the scale seen in the recent past. An agreed strategy and programme to address xenophobia September 2009 The Chamber to fast-track the finalisation of the engagements in Nedlac.
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FISCAL AND MONETARY POLICY WORKSTREAM

• State of the South African Economy 
• Fiscal Policy
• National Budget processes
• Global Financial Crisis
• Comprehensive Social Security and Retirement
  Funds Reforms Fiscal Policy dimension
• National Poverty Measures and National Poverty
  line
• National Health insurance
• National Credit Act
• Development Finance Institutions (DFIs
• Financial Sector Charter Council
• Education and promotion of Savings
• Implementing the Finance Protocol for Rural
  development and renewal nodes
• Review SA experience in managing the relationship
  between macroeconomic variables e.g. exchange
  rate, prices and interest rates

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Public Finance and Monetary Policy
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
Fiscal Policy To keep social partners engaged in the Government budgetary processes. The national budget to reflect the agreed key strategic objectives. August 2009 Convene dedicated sessions with the National Treasury on the National Budget processes
Monetary Policy Review SA experience in managing the relationship between macroeconomic variables e.g. exchange rate, prices and interest rates Devise mechanisms to address the impact of monetary policy in the real economy Immediate Task Teams on the Global Economic Crisis
Comprehensive Social Security For South Africa (Fiscal Policy Dimension) To craft an enabling fiscal policy instruments for a comprehensive social security system for South Africa To actualise the Comprehensive social security system for South Africa Govt Programme of Action To establish the state of readiness of Govt to table the proposed policy proposal in Nedlac
National Health insurance (Fiscal Policy Dimension) To seek consensus among the social partners on the proposed NHI scheme. The establishment of the NHI scheme that enjoys broad support by all social partners The state of readiness of Government Establish the state of readiness of govt and the timeframes to finalise the policy.
National Credit Act Examine the Impact of the NCA in order to ascertain if it has given rise to any unintended consequences perceived or real. To agree on the course of actions to be taken to address unintended consequences if any. July 2009 To invite the NCR to present an overview of the Act its impact negative or positive.
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Public Finance and Monetary Policy
Key Focus Areas Key Performance Indicators Measurable/Indicator Timeframe Action
National Poverty Measures and National Poverty line To resume engagements on the process to develop a National Poverty line within the broader context of poverty measures Framework. The establishment of an agreed National Poverty Line for South Africa. Government Programme of Action. Seek the state of readiness of govt to commence discussions on this matter
5 Investible Income To pursue the engagements on the 5 investible income within the context of the Global Economic Crisis. To reach agreement on instruments to be used in this regard. Immediate Task teams on the global economic crisis.
Development Finance Institutions Engage the DFIs on the relevance and appropriateness of their mandates in dealing with the national imperatives. To align the mandates and the workings of the DFIs in the economy. Immediate Task teams on the Global economic Crisis
Education and promotion of Savings To agree on steps to be taken to encourage and promote savings Launch a national campaign to increase the levels of savings . Immediate and ongoing A focused task team to be set up to discuss and agree on steps to be taken
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Communication

• PUBLICATIONS
• Quarterly Bulletins Socio Economic Trends
• Annual Report
• Framework for South Africas response to the
  International Crisis
• Booklet of Recent legislations
• Issue Briefs for internal and external
  consumption
• Secure space in strategic journals to profile
  Nedlac
• WEBSITE
• Update the Nedlac Website.
• PUBLIC INFORMATION b
• Improve the turn around time to queries for
  information in terms of the regulation of the
  Promotion of Access to Information Act (Act. No.
  2 of 2000).
• Keep track of compliance with the South Africas
  Legal Deposits of Nedlac information and
  publications.

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Human Resources

• Ramp up technical expertise in the secretariat
• Address the HR related recommendations in the
  Nedlac review
• Review the staff retention strategies
• Issue Driven research

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Special Projects

• Review of the Growth and Development Summit
  Agreements
• National Framework on the global economic crisis
• Farm workers agrarian and land reforms
• Social dialogue at provincial level
• Social dialogue in Africa and internationally
• Nedlac is a popular case study world wide

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FINANCE
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Budget - Income
INCOME BASELINE 2007/8 2008/9 2009/10
Grants received (Department of Labour) 13 348 000 13 959 000 14 657 000
Rental income (PSA) 400 000 440 000 484 000
Interests 50 000 51 000 51 000
Total income 13 798 000 14 450 000 15 192 000
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EXPENDITURE BASELINE 2007/8 2008/9 2009/10
Capital expenditure 235 000 100 000 110 000
Communication Special Projects 5 263 600 5 464 000 5 602 900
Capacity Support 1 446 000 1 590 000 1 749 000
Administration 2 403 400 2 421 000 2 519 000
Staff Cost 4 450 000 4 875 000 5 211 100
TOTAL EXPENDITURE 13 798 000 14 450 000 15 192 000
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Challenges for Social Dialogue

• ? Positional stances at leading resurfacing
  adversarialism of the past.
• ? Tight timeframes to finalise issues and little
  or no flexibility from some government
• departments.
• ? Sequencing of processes unwittingly undermine
  social dialogue.
• ? Policy coordination still posses a huge
  challenge for Nedlac processes
• ? Side-stepping Nedlac on key matters
• ? Absence of a formal protocol with Parliament
  (Possible inclusion of Nedlac in the
• Rules of the House
• ? Mandates obtained from cabinet too tight to
  allow space for trade offs in the Nedlac
• processes.
• ? Forum hopping

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• Thank you