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Fasken Martineau, a merger between the prestigious local Bell Dewar law firm and one of Canada’s biggest law firms, this morning sponsored a breakfast, hosted by the South African Chamber of Commerce and Industry (SACCI) where a vibrant exchange of ideas with the Director-General of Labour, Mr. Nkosinathi Nhleko took place. South Africa needs concrete cooperation between business and government in order to address current concerns relating to the labour market. The latest interaction was one such vital opportunity for representatives of the business community to exchange views with senior government officials.

Mr. Nhleko discussed current changes to the labour market regime, amongst others, the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA). The D-G emphasized that damage to property and violence committed during industrial action delegitimises the labour relations framework of South Africa. The D-G committed to seeking ways to reduce the level of violence during strikes.

The D-G also emphasized that South Africa’s social partners needed to craft solutions to the current concerns within the labour market. To this end, the D-G announced an upcoming Labour Relations Indaba during which such thorny issues as the tragedy at Marikana and foreign perceptions of South Africa’s labour market would be addressed.

SACCI commends the Department of Labour in its willingness to discuss often sensitive issues with the South African business community and looks forward to other similarly constructive engagements with the department in the near future.

Mr. Paul Fouche, Partner at Fasken Martineau noted that the merger between the two law firms in February this year highlighted three key trends in the business environment. First, the willingness of an international firm to invest in South Africa signals that foreign investors see large potential for economic growth and expansion into Africa. Second, despite these positive views, foreign investors remain sensitive to industrial relations environment. Third, although business can survive in the most adverse conditions, there will always remain the need for regulatory certainty.