Chapter 3

FULL EMPLOYMENT

The elected ANC Government stated its intention clearly, that its second term (June 1999 to 2004) would be characterized by a visible and meaningful impact on the lives of the poor. There exists no illusion on the part of Government or civil society about the enormity of the task. The following priority areas have been identified as critical social development needs: creation of employment and sustainable livelihoods, particularly for young people, and ensuring that women, particularly rural women, have access to skills, resources and opportunities. Despite progress made, millions of South Africans still lack basic needs such as food, water, housing, and education and health services.

The South African Constitution establishes a framework for reforms in labour legislation in order to promote the goal of productive employment. The implementation of the Labour Relations Act (LRA) of 1995 largely transformed labour legislation in South Africa. The Act is aimed at advancing economic development and social justice, labour peace and workplace democracy. It makes sufficient referral to collective bargaining, strikes, workplace forums and trade unions, dispute resolution and unfair dismissals. It further establishes schedules for bargaining councils for the public service. One of the LRA’s innovations is the Commission for Conciliation, Mediation and Arbitration (CCMA), which engages in dispute resolution in public and private sectors.

Table 23: Average Annual Household Income by Race of Head of Household in Each Province

Province

Average Annual Household Income

African
R000
Coloured
R000
Indian
R000
White
R000
Total
R000
Eastern Cape

17

24

56

90

24

Free State

14

16

-

72

25

Mpumalanga

20

30

78

82

30

North west

21

25

-

93

30

Northern Province

26

43

-

140

31

Northern Cape

13

18

34

79

31

KwaZulu Natal

24

41

61

98

37

Western Cape

22

33

54

98

53

Gauteng

37

53

111

118

71

Source: HIV and Human Development Report (1998)

Another important goal for South Africa is to work concretely towards achieving equality in all spheres of life as outlined in the equality clause in the Bill of Rights. Employment has undoubtedly been one of the focal points for this. Parliament passed the Employment Equity Act, which was implemented in mid-1999. This Act reinforces the Constitution’s provisions of equality in the workplace. It contains provisions to:

The Act further designates certain groups for special attention with regard to employment opportunities and in the award of state contracts. These include black people (African, Coloured and Indian), women and people with disabilities.

Unemployment Rates in South Africa

.

Source: HIV/AIDS and Human Development Report (1998)

Creating an enabling environment for human resource development has been a priority of the Government. From 1994, the Ministries of Education and Labour have collaborated to establish the National Qualifications Framework, which advances access, articulation and mobility for learners and workers across all areas of education and training, while building capacity for improved standards and quality assurance in the learning system. This work is being overseen by a statutory body in terms of the South African Qualifications Authority Act, 1995.

Another innovation in the sphere of labour is the Skills Development Act, 1998 and Skills Development Levies Act, 1999. In terms of the Act, the Skills Development Strategy is aimed at creating an enabling environment, which specifically links more effective education and training in the workplace. The Act puts in place new institutions, financial arrangements and learning programs aimed at the following:

In support of this Act, the National Skills Authority was launched in April 1999 to advise the Minister of Labour on:

As part of the National Skills Development Policy and Strategy, the Ministry of Labour established Sectoral Education and Training Authorities (SETA). The function of the SETA is to identify the training and development needs and opportunities for each occupational sector. These functions can be explained as follows:

Source: HIV and Human Development Report 1998

The enactment of legislative, policy and program-based reforms in all sectors of Government has been clearly evident since 1995. One such policy is South Africa's macro-economic policy, contained in the Growth, Employment and Redistribution Strategy (GEAR) announced in 1996.

The current job crisis and unacceptably high levels of unemployment in South Africa are to a great extent another remnant of apartheid policies of job reservation, inferior schooling, the creation of "homelands", the migrant labour system and forced removals of black people from their homes. These removals resulted in 71 % of the population occupying only 13 % of the land.

It is estimated that between 20 and 30 % of those of an economically productive age are unemployed. The severity of unemployment in South Africa is even more alarming when the figures are desegregated for race and gender. In addition to the existing 4-million people who are presently unemployed, it is estimated that 350 000 more people will join the ranks of the unemployed.

Table 24: Economically Active Population by Race and Gender

  Employed

Unemployed

Total

African

5682476

4205

9888468

Coloured

1129515

299231

1428746

Asian

363486

50379

413865

White

1856452

89066

1945518

Other

81917

26980

108897

Male

5481903

2039917

7521820

Female

3631944

2631730

6263674

Source: Census 96(Stats Sa)

In 1998, South Africa finalized the country's Employment Strategy Framework, which provides an integrated approach to addressing the problem of structural unemployment. Government established social partnerships with business and labour to develop the framework and implement the strategy. The framework formed the basis for a set of agreements; programs and projects aimed at enabling economic growth and employment creation. It was adopted at the Presidential Jobs Summit in October 1998. The social partners (Government, Business and Labour) at the Jobs Summit agreed that the Employment Strategy Framework was necessary to put South Africa on the path of job-creation.

The Presidential Jobs Summit itself focused on the creation of new employment opportunities in both the short and long term. It also identified means to improve the quality of existing employment opportunities, promote job security and formalize employment in the informal sector. Special employment programs target vulnerable groups such as youth, women, people with disabilities, and the rural and urban poor. The Government has also made a commitment to empowering people with disabilities in keeping with the provisions of the Constitution. This commitment is reflected in the White Paper on the Integrated National Disability Strategy. An Interdepartmental Task Team currently coordinates this strategy. The Task Team has committed itself to prioritising ways of creating a more accommodating, enabling and economically empowering environment for people with disabilities.

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Source: HIV/AIDS and Human Development Report 1998

Consolidating the work of the Task Team, the Presidential Jobs Summit provided the framework and opportunity for concrete inter-sectoral and inter-departmental strategies for the economic empowerment of the estimated 10 % of South Africans with disabilities to be implemented. For example, it was decided that 5 % of all economic development investments by the public sector, small, micro and medium-enterprise promotion, education and training, micro and industrial credit resources should be targeted to people with disabilities. The Presidential Jobs Summit included the pledge to abide by the following commitments:

Special mention needs to be made of the Social Plan adopted at the Presidential Jobs Summit. The Social Plan is aimed at avoiding job losses and employment decline wherever possible. In instances where large job losses are unavoidable, it seeks to actively manage retrenchment and to mitigate the effects on individuals and local economies.

Another initiative that was consolidated through the Presidential Jobs Summit is the Spatial Development Initiative. This program has identified sites in the country, which provide opportunities for substantial economic investment and development and which are also areas of immense socio-economic need. The program has been conceptualized as a model to demonstrate the integration of economic and social development.

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Source: HIV/AIDS and Human Development Report 1998


Contents   |    Chapter 1   |   Chapter 2    |   Chapter 3   |   Chapter 4   |    Chapter 5   |   Chapter 6   |    Chapter 7   |   Appendix