Preface and Acknowledgements

Labour market policy was, arguably, the centrepiece of apartheid's mechanism of social control and of its economic growth strategy. Poverty, discrimination and inequality were the hallmarks of its workings and consequences. Labour market policy was the site of some of the system's most draconian elements - the pass laws and job reservation to name but two. The labour market was also associated with some of apartheid's greatest failures and defeats. Poor economic performance and the rise of a powerful trade union movement are two consequences of this racist labour market policy and both played a leading role in apartheid's demise.

The backdrop against which the appointment of the Commission is to be viewed is the collapse of this system. However, the new government has been faced not merely with a policy vacuum, but also with a terrible legacy in the South African labour market: mass unemployment and poverty, discrimination and inequality, intense conflict at the workplace, low levels of productivity and a marked absence of the managerial and technical skills required to drive an economy increasingly open to the rigorous tests of international competition.

The new Labour Ministry immediately instituted a comprehensive policy review and, in its five-year Programme of Action, outlined a timetable for implementing far-reaching policy reform. This has proceeded apace. For the purposes of fulfilling the Commission's mandate, the statutory establishment of the National Economic Development and Labour Council and the passing of the Labour Relations Act are of paramount significance. Certain proposed amendments to the Labour Relations Act are, at the time of this writing, in the legislative pipeline. The Commission's deliberations have been based upon the Act passed by Parliament on 14 September 1995.

The Commission, whose Terms of Reference were gazetted on 21 May 1995, was established as part of this wide-ranging policy review. The Programme of Action commits the Ministry and its related institutions "to play a central role in achieving the society's two major objectives - firstly, the extension of the democratic gains already achieved, and secondly, the attainment of economic well-being". These objectives represent the core values and aspirations of society and have framed the deliberations of the Commission. This Report is intended to contribute to their further elaboration and ultimate realisation.

In the course of its deliberations, the Commission has drawn on five major sources for its insights and information. These are:

Written and oral submissions received from a range of interested parties. These are listed in Appendix I.

• The deliberations of the Commission. Plenary meetings of the Commission are listed in Appendix II.

• The advice of an International Reference Group comprising four eminent international scholars and policy analysts. These are Professor Samuel Bowles of the University of Massachusetts, Amherst; Professor Ben Fine of the School of Oriental and African Studies, University of London; Professor Richard Freeman of Harvard University and the London School of Economics; and Mr Derek Robinson of the Institute of Economics and Statistics, Oxford University.

• A comprehensive technical review of the South African labour market. This Review, undertaken under the auspices of the International Labour Organisation, was the Commission's major source of empirical information and a significant influence on our overall approach. The preparation of the Review was co-ordinated by Dr Guy Standing, Director of the ILO's Labour Market Policies Branch.

• A number of papers and studies requested by the Commission. Background papers were prepared by Carole Cooper of the Centre for Applied Legal Studies of the University of the Witwatersrand and Professor Samuel Bowles and James Heintz of the University of Massachusetts, Amherst.

Seventeen members were initially appointed to the Commission. Two of these - Ms M. Brown and Mr R. Zondo - were obliged to withdraw from the Commission, due to pressures of other work. We are grateful to them for their contribution while serving on the Commission.

The Commission has been ably assisted by a secretariat that managed its considerable administrative and logistical requirements and assisted in research and drafting. The members of the Secretariat are Ann Esau who, with the assistance of Janeen de Klerk and Eleanor Neethling, managed and administered the Commission's often complex procedures, and Haroon Bhorat and Tom Hertz who undertook background research and assisted in the preparation of the Report. The Commission is deeply grateful for the dedication demonstrated by the members of the secretariat.

 

---