The Minister of Public Works, Ms Stella Sigcau, and the Minister of Labour, Mr Membathisi Mdladlana both read speeches. The Minister of Minerals and Energy, Ms Phumzile Mlambo-Ngcuka made some opening remarks. The Minister of Agriculture and Land Affairs, Ms Thoko Msane-Didiza, was absent.
The following is a synopsis of the Minister’s responses to questions posed by the media:
(Q) What laws are being changed around retrenchment procedures in the Labour Relations Act?
(A) Minister Mdladlana: There have been several concerns raised by trade unions over the provisions of this Act. Firstly, the unions do not feel that employers take Section 189 very seriously, but rather that they go through the motions. Secondly, labour courts can only take action months after retrenchment has taken place. This poses a problem if the business no longer is operating. To deal with these problems, I put out a Code of Good Practice, and I asked that it be used in good faith. We will be monitoring the situation, and if we feel that companies are not adhering to the Code, or the Code is not sufficient, then I will consider legislative amendments.
(Q) In your speech, you referred to the "re-imaging of buildings". What does that mean?
(A) Minister Sigcau: We have moved from the period that we were in to a period of post-apartheid. As such, some of our buildings are no longer acceptable. This does not mean that we will be knocking down buildings, but rather changing them to show the new South African architecture. We want our buildings to represent the new period that we are living in.
(Q) Are you getting the money back that you had anticipated from electrification?
Has it been successful?
(A) Minister Mlambo-Ngcuka: Yes, we have seen an increase in payments for service, and no one has boycotted paying their bills. We are hoping with the introduction of electrification in certain areas that business activities will now start to develop. We are still awaiting to see if this happens. Some areas like Khayelitscha experienced poor quality, and we asked Eskom to address this problem, but generally we are happy.
(Q) Can you give us a time frame as to when the Review of the Labour Relations Act will be completed?
(A) Minister Mdladlana: The consultations have been concluded, and I have appointed a drafting team. We will be taking it to Cabinet, and then to the National Economic Development and Labour Council (NEDLAC). The amendments will probably be tabled in August. It is unreal to expect them any sooner, as the budget is the main concern of Parliament.
(Q) What do you expect to get from these properties that you intend to sell?
(A) Minister Sigcau: We will be calling for proposals on these properties. We want to extricate the best value for these properties, but also want to encourage businesses to development these properties. Next year, I will be better able to answer that question.
(Q) What do you have to say about the perception among investors that amendments to the Labour Relations Act are pro-business, and make it easy to hire and fire workers? Is this perception unfounded?
(A) Minister Mdladlana: The Department of Labour is characterised by rising skills, sound labour relations, and ensuring worker’s rights, and we believe in the rule of law. We also want stability in the economy, not adversity. That perception is definitely unfounded. We have produced our 15 point program, which indicates where we have come from, and where we are going. It is wrong to think that the labour market can solve all the problems of the economy. If you do not have sound labour relations, economic conditions will be effected. We are not going to introduce a policy of hiring and firing at will.
(Q) There has been speculation that in rural developments there has been administrative chaos and riding tension over land rights. What progress has been made to clarify these issues?
(A) Minister Sigcau: Before any project is undertaken by the Department of Public Works, we always talk to the community and it’s leaders. We have never met with much conflict, most are very welcoming to us. We look very closely not only at one specific area, but at the surrounding areas to ensure that there will be opportunities for them to work. In Kwazula-Natal, we received a letter from a senior official that said to go ahead with development. There is a silent revolution happening that life is not always better in the city. There is great potential for work outside of the city. We will be working to move people away from the squatter camps to more sustainable land that offers good lakes, and good land for farming.
(Q) Is the Government planning on building a gas pipeline?
(A) Minister Mlambo-Ngcuka: We do not have any plans to build a gas pipeline, but if industries are looking at this, then we are very interested in hearing what they have to say. The Government will not initiate the building of a pipeline, but we are interested in a pipeline from Mozambique.
(Q) Where does increased flexibility lie in the labour market?
(A) Minister Mdladlana: I am not even sure what that term means, but my 15 point plan outlines exactly what we are trying to achieve. It states:
Our approach to labour market policy is predicated on the belief that the labour market, while it has some inherited rigidities, is sufficiently flexible primarily as a consequence of recent policy initiatives.
(Q) What will the amendments be in August?
(A) Minister Mdladlana: This is a very difficult process, because we must address the ills of the past. Many of the laws passed in 1994 have unintended consequences that we are only beginning to see now. An example of this is the reduction of work hours. We found that this inadvertently effected the working hours of security guards. We now have included a Schedule in the Employment Act that deals with the security industry. We have to wait until the amendments are drafted, and go through the regular process, before any more can be said.