The government's labour market policy aims to forge a middle road between two extremes, according to Labour Minister Membathisi Mdladlana.

"The ANC-led government's approach to the country's labour market policy aims to forge a middle road between the extreme 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," Mdladlana said this week at the 17th Annual Labour Law Conference in Sandton, Johannesburg.

"On the one hand, it is felt that advocates of deregulation and labour market flexibility understate the nature of the 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 workers work, such as agriculture, security and domestic work", he said.

"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 increase in the cost of production, the discouragement of foreign investment; increased administrative costs, the possible loss of jobs; and the possible triggering of a wage/price inflation spiral."

Mdladlana said this approach remained government's preferred programme of action which would effectively address the extremes affecting South Africa's labour market policies and regulations.

"It is important that we respond to objective reality and not to perceptions of reality as advocated by many of our opponents.

"We inherited a world of work characterised by economic deprivation, adversarial labour relations and the denial of worker rights, a cheap labour system, massive income disparities, systematic discrimination against black people, women and people with disability."

The past ten years had seen history-making developments such as new legislation and an institutionalised framework capable of putting the economy on the growth path, while restoring the dignity of workers through the philosophy of decent work.

Maturing social dialogue had led to unprecedented industrial peace.

"Workdays lost due to industrial action have reduced to 2,6-million in 1999, during 107 instances of industrial action, to 919 780 in 62 cases reported in 2003. The CCMA handled 116 000 cases between April 2003 to February 2004, at an average of 553 cases a day," Mdladlana said. – Sapa.