29 JUNE 1999
Over the past few months we have been involved in a process of developing a new programme for my Ministry in the next five years. This has drawn on research and analysis undertaken by the Department of Labour, as well as a series of consultations with our colleagues in government and with our social partners (organised business, labour and the community constituency).
This process has confirmed the overwhelming electoral mandate we achieve in our second democratic election earlier this month. As a result of this process we are satisfied that government's approach to labour market policy over the past five years is correct. It is our firm belief that the thrust of the reforms introduced thus far is consistent with - and indeed promotes - the achievement of the social and economic imperatives of employment creation, economic growth and efficiency, equity and the alleviation of poverty.
Our programme of action will build on these foundations.
Major elements of this programme relate to the determined and systematic implementation of the legislation passed by our first democratic parliament, while others relate to the introduction of new legislation.
Government's key priorities within the arena of labour market policy in the next period will be employment creation, the implementation of the skills development strategy in order to address our country's skills deficit, the reversal of the legacy of apartheid inequalities in the workplace, and building on the gains of the previous period to stabilise labour relations.
FIFTEEN POINT PROGRAMME OF THE MINISTRY OF LABOUR
The Department is committed to addressing the following interrelated challenges in this five year period:
First, is the need to secure an appropriate balance between security and flexibility in the labour market. While we believe that our legislative framework in general reflects such a balance, we are committed in this period to:
Second, employment creation is the biggest challenge facing government. The Department's particular contribution to this challenge rests with the formulation of effective and active labour market policies as well as to provide a supporting and enabling environment for jobs to be created.
Third, we shall ensure the effective and efficient implementation of the resolutions of the Presidential Job Summit in order to accelerate job creation and tackle the scourge of high unemployment.
Much work has been done in this regard to implement the agreements arrived upon at the Jobs Summit. The next meeting of the Nedlac Supervisory Structure will take place on 8 July and I will be making a detailed announcement on progress to date following this meeting.
Fourth is the skills revolution which is made possible by the passage of the Skills Development Act (1998) and the Skills Development Levies Act (1999).
Over the past few months, when many of us were focused firmly on the renewal of our democratic mandate, critical progress has already been made to ensure the speedy and effective implementation of these policies.
In April this year, the National Skills Authority was launched, consisting of representatives of key stakeholders, and it has been hard at work setting in place the necessary systems and infrastructure to implement our new skills legislation.
The National Skills Fund has been established, with R50 million from government. The NSF will support skill development linked to emerging income generating opportunities, be they self-employed, local economic development, spatial development initiatives or job-creation schemes. Already this year, the Fund will enable us to finance Social Plan measures to ameliorate the impact of the massive retrenchments occasioned by the restructuring of the economic and aimed at rehabilitating communities economically depressed as a result.
The framework for the establishment of the Sectoral Education and Training Authorities (SETA) is in place and we are awaiting public comment by 16 July to finalise their demarcation. By the end of the year, at least 28 SETAs composed of the employers unions and government departments in sectors across the economic will have been establishment and ready to begin their work.
As you are all aware, the tourism sector has been identified as a key strategic area for economic and employment growth. The completion of a pilot project around leaderships linked to the hospitality industry in KwaZulu-Natal has given us the strategic edge in ensuring further successful intervention in promoting skills development and job creation in this sector.
Within the public service, the application of the skills levy will provide a significant boost to government's capacity building and quality service delivery in the years ahead.
All of these efforts will ensure that, when the skills levy in on 1 April 2000, the infrastructure will be in place to ensure that the resources derived from this will be put to effective use in both the private and the public sector.
The skills deficit is one of the major handicaps to the growth of our economy and is a discouraging factor to potential foreign investors. Its resolution will therefore be a key aspect of my programme of action. With the policy framework now in place, our focus will shift to ensure that the skills development structures that are set up, adequately and speedily respond to market demands and imperatives.
Fifth, in the light of the persistence of the racial and gender inequalities in the workplace and the inefficient utilisation of our human resources arising from this, the Department passed the Employment Equity Act in 1998. The coming period will focus on the effective implementation of the Employment Equity Act as an important part of government's project to create an equitable society.
We are on course for the promulgation of the Employment Equity Act in line with the timeframes which I announced at the end of April. The Commission for Employment Equity has been established and will, appropriately, be launched on 9 August, along with those provisions of the Act relating to the eradication of workplace discrimination.
The operational model and systems for the implementation of the Act are in place, the training of Department of Labour and CCMA staff is underway, plans for a publicity and awareness raising campaign are at an advanced stage and the codes of best practice and regulations are being finalised in line with the promulgation dates.
Sixth, the state carries the responsibility of protecting vulnerable workers to ensure that they have the same basic rights as other workers and are afforded their dignity. The Basic Conditions of Employment Act is the principal instrument through which such protections are extended. In the coming period we shall focus on its effective and appropriate implementation, bearing in mind the above mentioned requirement to seek a balance between security and flexibility.
Seventh, there will be a need to introduce legislative reforms that are intended to improve the safety net to cushion those affected by the country's structural unemployment. This will be done within the broad framework of the government's social security system.
Particular attention will be given to the restructuring of the Unemployment Insurance Fund in order to extend coverage, contain costs, enhance compliance, and ensure improved co-ordination with other social and labour policies, including reskilling and recruitment system. In this regard, preparations are underway for the introduction of new Unemployment Insurance Fund legislation in parliament next year.
Eighth, to adequately deal with the negative consequences of occupational accidents and ill health on individuals, enterprises and the state, we will accelerate measures aimed at reducing accidents and improving the health and safety of workers. This will occur, inter alia, through achieving greater co-ordination of the occupational health and safety instruments of government.
Ninth, evidence suggests that the interventions introduced through the Labour Relations Act of 1995 have contributed positively to promoting stable labour relations. The Department will ensure that these gains are built upon and consolidated in order to continue with the downward trend in industrial conflict. Negative and unintended consequences of the legislation will also be addressed through legislative amendments or institution and capacity building, as appropriate.
Tenth, the Department shall build on the initiatives already undertaken to promote productivity. This will include promoting an agreement the social partners on productivity as discussed at the Job Summit in October 1998 and drawing on the experiences of the Workplace Challenge and the National Productivity Institute.
Eleventh, the transformation of various statutory bodies and the establishment of NEDLAC have brought clear gains in policy development and policy making. The challenge is to build on this culture of dialogue and nurture the opportunities for entrenched social partnership.
Twelfth, the Department will continue its efforts to ensure that our country is fully integrated in the international system. We intend to develop adequate capacity and resources to influence and shape international policies as developed by the ILO and other relevant international institutions.
Thirteenth, the Department will improve its capacity to monitor the impact of government policy in regard to economic growth, employment and development. This will assist in establishing a more scientific basis for discussion on the impact of government's labour market policies.
Fourteenth, the major institutional restructuring we have undertaken will have to be extended and consolidated in order to ensure that the Department of Labour is aligned to address the above mentioned challenges and carry out the new and expanded mandate that emanates from the changed policy environment.
Fifteenth, while the thrust of our policies will remain the same, certain areas of concern which may be perceived to be obstacles to employment creation or the promotion of investment will receive attention.
Arising from the Jobs Summit, I appoint a task team lead by my director general, Mr Sipho Pityana, to investigate the impact of our labour legislation of job security, job creation and the related issues of productivity, efficiency and investment. In the course of this investigation, which included a series of discussion and deliberations with our social partners, a number of specific areas were identified which warrant re-evaluation in relation to their perceived or actual impact on job creation. These include:
In the next few weeks I will be undertaking detailed consultations with our social partners. In mid-August this year I will make further announcements regarding processes, timeframes and mechanisms which will lead to a conclusive resolution of these.
I have outlined to you today the key thrust of my programme of action which we believe will ensure the accelerated delivery of a labour market which is both efficient and just, productive and equitable. This will not be achieved by government alone, and the challenges we face as government are the challenges we face as a nation.
Meeting these challenges is indeed integral to what our president referred to as the larger project of our self-definition as a people at work, building a better life for ourselves".