• the high level of unemployment is the main problem within the labour market
• extreme levels of inequality primarily on race and sex
• low level of education
• a skills deficit - and investors require a skilled labour force to invest
• very few companies investing in training
• inadequate protection of low income workers, especially domestic and farm workers.

These problems in the labour market need to be addressed and improved to achieve democracy.

The Minister said that he is confident that the government’s approach to labour market policy over the past five years has been correct. The Minister furthermore expressed his department’s belief that the thrust of the reforms introduced thus far is consistent with, and indeed promotes, the achievements of the social and economic imperatives of employment creation, economic growth and efficiency, equity and the alleviation of poverty.

The Minister said the government’s key priorities within the labour market in the next period will be employment creation, the implementation of the skills development strategy in order to address the 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.

A Fifteen Point Programme for the Ministry of Labour comes out of the department’s experiences of the past five years. The Department is committed to addressing the following interrelated challenges in this five year period:

1 The need to secure an appropriate balance between security and flexibility in the labour market. In the department’s belief that the legislative framework in general reflects such a balance, they are committed in this period to:

• A continuous process of review of current legislation and policy with respect to their impact on both worker welfare and economic efficiency;
• Considering appropriate modifications to accommodate the needs of small-scale enterprises, labour intensive industries, unemployed youth, and of the unemployed generally; and
• Ensuring that labour market, macroeconomic, industrial and developmental policies are properly aligned and coordinated to achieve the objectives of government.

2 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.

3. The Department shall ensure the effective and efficient implementation of the resolution of the Presidential Job Summit in order to accelerate job creation and tackle the scourge of high unemployment.

4 The skills revolution which is made possible by the passage of the Skills Development Act of 1998 and the Skills Development Levies Act of 1999. 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 new skills legislation.

5 In the light of the persistence of the racial and gender inequalities in the workplace and the inefficient utilisation of the dapartment’s 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.

6 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 the Department shall focus on its effective and appropriate implementation, bearing in mind the above mentioned requirements to seek a balance between security and flexibility.

7 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.

8 To adequately deal with the negative consequences of occupational accidents and ill health on individuals, enterprises and the state, the Department will accelerate measures aimed at reducing accidents and improving the health and safety of workers. This will occur, inter alia, through achieving greater coordination of the occupational health and safety instruments of government.

9 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.

10 The Department shall build on the initiatives already undertaken to promote productivity.

11 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.

12 The Department will continue its efforts to ensure that our country is fully integrated in the international system.

13 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.

14 The major institutional restructuring the Department has 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.

15 While the thrust of the Department’s 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.

The Minister said that a number of specific areas were identified by the task team, lead by Mr Sipho Pityana, Director General of Labour, which investigated the impact of labour legislation on job security, job creation and the related issues of productivity, efficiency and investment. These identified areas warrant re-evaluation in relation to their perceived or actual impact on job creation. These include :

• Probationary periods;
• Unfair dismissal procedures and compensation in respect of procedurally unfair dismissals;
• Dismissals for operational requirements, mainly retrenchments;
• Conditions of employment when companies change hands;
• Provisions in the BCEA on Sunday work and notice;
• Working hours
• The role of the Minister and sectoral determinations in varying core rights in the BCEA; and
• Improving the efficacy of some of the institutions set up to assist us in regulating the labour market, including the CCMA and Labour Court.

The Minister then open the floor for any questions or comments.

Question: The Department of Labour has taken on and introduced several projects, now have the workers walked away with some skills?

Response : The idea of the projects was to improve the skill levels of people who participate in the project and yes, most definitely workers do walk away with skills. In most instances these people continue in that sector using the skills that they have acquired.

Question : In respect of training, are certificates given?

Response: Yes, the position is not only to give training but also to make the person more marketable.

Question : Comment on the accessibility of the Labour Centres and also the awareness thereof?

Response : The Department is aware of the accessibility problem therefore we are in the process of making these labour centres more accessible, especially spreading them to the rural areas.

Question : A lot has been done by the CCMA, but something must be done with the respect given by the parties to the decisions of the CCMA.

Response : Implementation of decisions is not really such a big problem, but it is one of the areas which must be looked at.

Since there were no more questions the meeting was closed.