GREEN PAPER ON EMPLOYMENT STANDARDS

Issued by: Ministry of Labour 13/02/96

THE GREEN PAPER ON EMPLOYMENT STANDARDS

TITO MBOWENI, MP MINISTER OF LABOUR

In his opening address to Parliament, the President called upon us to do something about employment standards and equity.

In our Five Year Plan which we released over a year ago, we undertook to review the Basic Conditions of Employment Act, 1983, and to restructure and reconsider the Wage Board. We have now arrived at the start of this very important process.

Today I am releasing a Green Paper entitled "Policy Proposals for a new Employment Standards bill". It contains proposals and options for consideration by our social partners at NEDLAC and for public comment and debate.

The agreements reached at NEDLAC together with the public feedback will be used to draft an EMPLOYMENT STANDARDS BILL which will be tabled in this House during the second half of the year.

Millions of hard working South Africans have yet to benefit from our trasitio to democracy. There are workers who are not protected by our existing legislation, who work excessively long hours, and children who are forced to work instead of attending school and other training courses.

In embarking on this processs of legislative review, our starting point is that the regulation of employment standards must be in keeping with and promote our country's economic, social and political goals.

Our proposals for new legislation aim to break with the outdated and rigid formulations in current laws. the new Employment Standards Bill will modernise our approach to employment standards. It will also be simple, certain and accessible to users.

The key concern of the Green Paper is to balance two issues of great importance: protecting minimum standards on the one hand and enabling greater labour market flexibility, on the other.

To achieve this we have introduced the concept of "regulated flexibility" - the law must set and enforce standards and articulate the methods and procedures for variation. The major proposed mechanisms for varying standards are collective agreements, wage determinations or administrative action.

The Bill will also promote equity in the labour market. Together with the Employment Equity Billl which we are planning to introduce this year, this legislation will contribute to removing discrimination and inequalities based on colour, sex, sexual orientation and disability.

the core proposals contained in the Green Paper are:

Firstly, that the new Billl should include all workers.

Secondly, there should be a number of provisions to protect workers in vulnerable, non-standards (atypical) employment, including part-time workers, casual workers, workers of sub-contractors and home workers.

Thirdly, the Green Paper proposes additional functions and a new name for the Wage Board: the Employment Standards Commission.

the commission will as in the past make recommendations to the Minister on standards for lowly paid workers in unorganised sectors. Its jurisdiction will be extended to the two million farm and domestic workers. It will advise the Minister more generally on standards, including for example the impact of policies on job creation.

The fourth area is that of working time. Hours of work are a central concern of the Green Paper. Many workers use overtime earning to make a living. Employers require overtime to avoid additional recruiting. Herein lies a structural problem.

I am of the view that working hours in South Africa should be reduced. The 40-hour week is a long standing demand. It is enshrined in the FREEDOM CHARTER. It is particularly pertinent for South African workers who nt only work long hours but spend many hours travelling to and from work as a result of the apartheid geography of our cities and towns.

We are mindful of the fact that the objective of improved living standards may not be achieved by merely legislating a 40 hour week. The Green Paper proposes a comprehensive and integrated package of proposals to be phased in over a period of time.

The legislative parts of this package involve an initial reduction of hours of work from the present limits of 46 and 48 to 45 and to reduce significantly hours of work for workers who have excessive limits, such as security workers.

It is also proposed that rigidities in the present law such as restrictions on Sunday work should be removed.

The Green Paper proposes that the social partners should seek a national agreement on reducing hours of work in the context of promoting job creation, productivity, human resource development and wage compensation. Such a national agreement could be implemented at sectoral level.

We are putting forward a challenge to business and labour with regard to hours of work including overtime. Couldn't we change the dispensation so that more workers can be employed or productivity enhanced? This will require fundamental agreements from both.

These proposals are no doubt controversial but we cannot avoid this debate any longer. Our mandate is to transform and change our country for the better.

Fifthly, we look at maternal and family responsibilities. We propose job security of four months for maternity leave. The demand for family responsibility leave has been widespread and we are suggesting that each employee should have a quota of three days per year for this purpose.

Six. in respect of child labour we need to do something about the estimated 200 000 children between the ages of 10 and 14 in employment. The highest levels are in agriculture. Child labour is a result of poverty and perpetuates poverty. We need to eradicate it.

Seven,in repect of individual employment relations, the Green Paper proposes, as agreed during negotiations on the new LRA, to transfer the provisions regulating unfair dismissal and individual unfair labour practices from the Labour Relations Act (1995) to the proposed employment Standards Bill.

Eight, as regards enforcement: Unfortunately our criminal courts have become too crowded. Many employers disregard the law knowing that the prospect of prosecution is slim. More effective and less adversarial enforcement mechanisms are proposed such as the use of the Small Claims Court and Commission for Conciliation, Mediation and Arbitration.

Lastly, I am concerned to reduce the presently overlapping and sometimes conflicting obligations that labour law imposes upon employers. Our plan is to reduce and rationalise these so as to minimise employers' paper work obligations.

In conclusion, I am very mindful of the fact that legislation alone is not going to improve working conditions. Our legislation needs to be complimented by other economic policies.

I thank you