LABOUR LAW AMENDMENTS PROMOTE LABOUR MARKET EFFICIENCIES AND PROTECT WORKERS

29 July 2002

"The key objective of the new Labour Law Amendments is the promotion of labour market efficiencies coupled with the development and protection of decent labour standards", Minister of Labour, Membathisi Mdladlana said at the launch of the amendments in Midrand today.

"The amendments to the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA) … are extremely significant for workers and employers and are testament to the success of constructive social dialogue engaged in by these sectors," the Minister said.

"Our laws provide for opportunities to dialogue and find agreement without resorting to acrimonious exchanges and hostile posturing; and for this reason I would appeal to parties to any industrial dispute to talk and talk and talk until a resolution is found," the Minister said.

"My Department remains committed to assisting those who are still struggling to find their way around the new law. But, I also want to sound a word of warning to those who are committed to disregarding laws passed by a democratically elected Parliament. To you I say we shall not be deterred from dealing with you accordingly," the Minister warned.

The promulgation of these laws on 1 August 2002 is the achievement of the goal set by President Thabo Mbeki in his 2000 State of the Nation address.

The Minister said the amendments specifically seek to:

• Improve the functioning of Collective Bargaining and Bargaining Councils
• Increase the effectiveness and efficiency of the CCMA, particularly in relation to its ability to serve small employers and vulnerable workers
• Bring stability to the Labour Court in respect of the status of judges
• Improve procedures in the event of dismissals including providing for probation and introducing a fairer system of compensation in the event of unfair dismissal
• Significantly revamp the procedures in the event of retrenchments
• Provide certainty and clarity as to the transfer of workers’ contracts of employment when a company changes hands
• Address problems workers face in the event of an insolvency
• Prevent the abuse of workers who are forced to sign contracts which turn them into independent contractors when they are in fact employees
• Improve the balance between labour market efficiency and decent labour standards in respect of the Basic Conditions of Employment Act
• Improve the application of the Basic Conditions of Employment Act
• Enable the Registrar of Labour Relations to act against bogus unions and employer organisations.
• "The successful resolution of industrial disputes and many others that have not resulted in industrial action could not have been possible eight years ago because the country did not have effective dispute resolution instruments and institutions (as) introduced by our Government," the Minister said.

Issued by: Chief Directorate Communications Department of Labour

Inquiries: Dr Snuki Zikalala 082 561 3842