DECENT WORK

Select Committee on Labour & Public Enterprise

29th May 2013

Introduction

1. What is the Decent Work Agenda?

2. The South African Decent Work Country Programme

3. SA DWCP Governance & Implementation

4. DoL involvement in Cooperatives

1. What is the Decent Work Agenda?

• Since 1999, promotion of decent work as been a main objective of the International Labour Organisation (ILO)

• Primary goal of ILO Decent Work Agenda: “to promote opportunities for women and men to obtain decent and productive work in conditions of freedom, equity, security and human dignity.”

• Concept of decent work based on understanding that work not only a source of income, but a source of dignity, family stability, economic growth, etc.

Decent Work Agenda cont.

Strategic pillars of decent work:

i.Promotion of fundamental principles and rights at work;ii.Promotion of employment and income opportunities;iii.Expansion and improvement of social protection cover;iv.Promotion of social dialogue and tripartism.

Decent Work Agenda in South Africa

• ANC 2009 Election Manifesto: “creation of decent work and sustainable livelihoods”

• Inaugural State of the Nation Address by President Zuma in June 2009: “The creation of decent work will be at the centre of our economic policies and will influence our investment attraction and job creation initiatives.”

• New Growth Path

• Labour law amendments

2. Decent Work Country Programme

• ILO Decent Work Agenda implemented through Decent Work Country Programmes (DWCP).

• DWCP - main vehicle for delivery of ILO support to member states

• DWCP’s promote decent work as a key component of national development strategies.

• DWCP – programming tool to deliver on limited priorities over a defined period.

SA DWCP, 2010 to 2014

• Consultative workshop in 2008, followed by country situation analysis

• DWCP launched in September 2010• Aims to complement efforts by government to address its

objectives and for all stakeholders to achieve decent work imperatives

• Housed in NEDLAC, coordinated in government by DOL, supported by ILO Pretoria office

• Managed through DWCP Steering Committee• DWCP matrix – 4 Priorities; 8 Outcomes.

SA DWCP: Overview of Priorities & Outcomes

PRIORITY 1: Strengthening Fundamental Principles and Rights at work Outcome 1:Up-to-date International Labour Standards are ratified, complied

with and reported on.Outcome 2:Labour administration apply up-to-date labour legislation and

provide effective services.PRIORITY 2: Employment PromotionOutcome 3:More women and men, especially youth and persons with

disabilities, have access to productive and decent employment through inclusive job rich growth.

Outcome 4:Sustainable and competitive enterprises (incl. cooperatives) create productive and decent jobs especially among women, youth and persons with disabilities.

Outcome 5:Skills development increases the employability of workers and the inclusiveness of growth

SA DWCP: Overview of Priorities & Outcomes

PRIORITY 3: Strengthening and broadening social protectionOutcome 6:Skills development increases the employability of workers and

the inclusiveness of growthOutcome 7:Workers and enterprises benefit from improved safety and

healthy conditions at work.Outcome 8:The World of Work responds effectively to the HIV and AIDS

epidemic PRIORITY 4: Strengthening tripartism and social dialogueOutcome 9:Strengthened labour market institutions and capacitated social

partners (tripartite-plus) contribute to effective social dialogue and sound industrial relations

3. SA DWCP Governance & Implementation

3.1. Governance

•The SA DWCP Steering Committee held its first meeting in Dec. 2010.•The Steering Committee is fully functioning and meets regularly through NEDLAC.•Purpose:

– oversee formulation and planning of projects & activities within framework of DWCP;

– approve projects before implementation;– monitor and review implementation of DWCP

•DWCP Steering Committee reports through Labour Market Chamber to NEDLAC Management Committee

DWCP Governance & Implementation

3.2. Implementation

•Detailed Implementation reports presented by ILO to each Steering Committee•Implementation reports follow Outcomes and Outputs and update the Work Programme•Report covers activities of ILO (Geneva & Pretoria) with all social partners

Priority 1: Strengthening fundamental principles and rights at work

DWCP OUTCOME 1: Up-to-date International Labour Standards are ratified, complied with and reported onDWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATE

Output 1.1: Relevant conventions to the South African context are reviewed for ratification, including those relating to labour market governance, Gender, and Social Security

• In 2012, Cabinet approved that South Africa ratify the Domestic Workers Convention, 189 (2011), Labour Inspection Convention, 81 (1947), the Maritime Labour Convention (2006), and the Convention on Work in the Fishing Sector, (2007).

• At the request of the DoL, the ILO conducted a comparative study on South African social security law and practice to determine the extent of compliance with Convention 102 on Social Security (Minimum Stds).

• The National Department of Cooperative Governance and Traditional Affairs is currently looking into the possibility of ratifying the Indigenous and Tribal People’s Convention, 169 (1989).

12

Priority 1: Strengthening fundamental principles and rights at work

DWCP OUTCOME 2: Labour administrations apply up-to-date labour legislation and provide effective services DWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATE

Output 2.2: Labour Inspection systems in the public sector and private sector strengthened

• South Africa is one of 5 pilot countries selected by the ILO to test a

methodology at harmonizing the collection and analysis of labour

inspection data to improve the monitoring of decent work.

• DoL has undertaken an in-depth study into the current state and

content of statistics related to labour inspections and data collection in

the DoL. The study provided concrete proposals to develop an efficient

Labour Inspection data collection methodology.

13

Priority 2: Employment Promotion

DWCP OUTCOME 3: More women and men especially youth and persons with disability have access to productive and decent employment through inclusive job rich growthDWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATE

Output3.2: Strengthened national capacity to analyze and access data on decent work following locally relevant indicators

• A Draft South Africa Decent Work Country Profile was

developed with ILO support.

• Work on the first nationally produced South Africa Decent

Work Country Profile is on-ongoing.

14

Priority 2: Employment Promotion

DWCP OUTCOME 4: Sustainable and competitive enterprises (including cooperatives) create productive and decent jobs especially among women, youth, and persons with disabilities DWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATEOutput 4.3: Support for the upgrading and promotion of social economy enterprises (including cooperatives)

• The Flemish funded Public Procurement and Social Economy (PPSE) project that is implemented in the KwaZulu Natal province seeks to test ways of using public procurement to stimulate the social economy. Project implementation is in the Umkhanyakude District Municipality and the eThekwini Municipality.

• Project implementation focusses on the following sectors: agriculture and waste in the Umkhanyakude District; and agriculture, waste, weed killing using Cooperatives and in other municipal services within the eThekwini municipality.

• The PPSE project completed a Public Procurement and Social Economy briefing pack on public procurement for policy makers and policy stakeholders.

15

Priority 3: Strengthening and broadening social protection coverage

DWCP OUTCOME 6 :More people have access to improved and more gender equitable social security and health benefitsDWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATE

Output 6.1: Support for a new and more inclusive mandatory social security system.

• Support provided to Department of Social Development for a broad based national dialogue in South Africa towards the definition of a Social Protection Floor.

16

Priority 4: Strengthening Tripartism plus and Social Dialogue

DWCP OUTCOME 9: Strengthened labour market institutions and capacitated social partners (tripartite-plus) contribute to effective social dialogue and sound industrial relationsDWCP OUTPUTS IMPLEMENTATION UPDATEIMPLEMENTATION UPDATE

Output 9.1: Institutional capacity of NEDLAC and other labour market institutions supported

• ILO support provided for a research undertaken to explore and rethink the future role of NEDLAC to increase its relevance.

•NEDLAC secretariat trained to improve their effectiveness in providing services to the constituents.

•ILO support provided to review and update the NEDLAC protocols based on international best practice

17

DWCP Implementation for DOL

Support for Labour administration and inspection services in DOL

Support for training of inspectors

Support for Labour Inspection Policy Conference

Technical assistance for review of Code of Good Practice on HIV/AIDS (requested)

Support for Collective Bargaining workshop in April 2011 to strengthen capacity of bargaining and statutory councils (requested)

ILO technical assistance in area of social security and retirement reform

Decent Work Country Profile (DWCP)

1. Background

• ILO Governing Body endorsed a project to test a framework of indicators in a number of countries

MAP Project (Monitoring and assessing progress on decent work)

• MAP project launched as tripartite project in: Bangladesh, Brazil, Cambodia, Indonesia, Peru, Philippines, Ukraine & Zambia. To end in 2013.

• MAP facilitates identification of indicators, supports data collection and uses data for integrated policy analysis of decent work.

DWCP cont. 2. Thematic areas in Profile (linked to pillars of decent work):

– employment opportunities– adequate earnings and productive work – decent hours– combining work, family and personal life– work that should be abolished– stability and security of work – equal opportunity and treatment – safe work environment – social security– promotion of social dialogue and representation of workers and

employers

1. Employment opportunities 1. Unemployment: 25.2%1.1 Informal employment: 30%

2. Adequate earnings and productive work

2. 34% of non-agricultural workers earned less than two-thirds of median monthly earnings.

3. Decent hours 3. 24% of workers work more than 48 hours per week.

4. Combining work, family and personal life

4. Women responsible for 57% of hours spent on work

5. Work that should be abolished 5. Approx. 10% of those aged 10-17 years vulnerable on one of the indicators

Monitoring progress towards decent work in SA

6. Stability and security of work 6. 12% of employees on limited duration contracts; 22% on contracts of unspecified duration

7. Equal opportunity & treatment 7. African men – 14% of top management; African women – 6%

7.1 Gender wage gap: 30%

8. Safe work environment 8. Data weaknesses

9. Social security 9. 46% of EAP have pension contributions; 32% of employees entitled to medical aid benefits

10. Social dialogue & representation 10. 30% trade union density; 32.7% collective bargaining coverage

Monitoring progress towards decent work in SA

23

DOL involvement in Cooperatives

Support

DOL involvement in Cooperatives

Support

DOL Involvement in cooperatives support

• DOL support to Cooperatives until 2009 were through:

- Umsobomvu Youth Fund that has since been transferred to the Presidency- The Skills Development Sector Education and Training Authorities and the National

Skills Fund that were transferred to the DHET.

• Involvement in DTI policy review initiatives• DOL Research on Cooperatives• Provision of Employment Services Information

to work seekers in Labour Centres

Involvement in DTI policy initiatives

• The Department was involved in discussions that culminated in the Amendment to the current cooperatives Act,

• The Cooperatives Amendment Bill has been through parliament and will soon become law

• Cooperatives are defined as Autonomous association of persons united voluntarily to meet their economic, social and cultural needs through a jointly owned and democratically controlled enterprise” ILO

• The ILO views cooperatives as important in improving the living and working conditions of women and men globally as well as making essential infrastructure and services available even in areas neglected by the state and investor-driven enterprises.

DOL Research in Understanding the Worker Cooperative

• Cooperatives have a proven record of creating and sustaining employment – they provide over 100 million jobs today; they advance the ILO’s Global Employment Agenda and contribute to promoting decent work.

• In RSA case Cooperatives can contribute towards poverty reduction in general, creating employment, especially for young people, contribute to the country’s MDG commitments etc.

Understanding the Worker Cooperative

• Two centuries of experience• Movements and crises are crucial

drivers• Worker ownership and control• Normative Arguments: (I)Worker Owner Based Work;(II)Economic Democracy(III) Equality

Understanding the Worker Cooperative Advantage I

Understanding Worker Cooperative Advantage II

Understanding the Worker Cooperative Advantage II

• The Economics of Worker Cooperatives(I)Macro-economics: growth, structural transformation, labour market benefits, innovation(II) Micro-economics: Labour costs are a fixed cost, builds internal capital pools, community transformation

Understanding the Worker Cooperative Advantage III

Understanding the Worker Cooperative Advantage IV

Understanding the Worker Cooperative Advantage IV

• Constraints – internal and external linked to social relations (e.g. concentration of power)

• Approach to understanding challenges – Understand cooperatives case by case, – conditions for regeneration (e.g. ongoing

education), – conscious strategic action and commitment to

democratic decision-making• Degeneration can be avoided through rigorous social

scientific investigation as the basis of conscious problem solving

Understanding the Worker Cooperative Advantage V

Research Key Recommendations on Worker Coop Support Strategy II

Objectives (cont…):• Provide regulatory standards to prevent

the abuse of the worker cooperative model and ensure descent worker owner work

• Align Principles with DTI Strategy: ‘share responsibility’, etc

• Strategic opportunities: International, national and in DOL

• Main strategic pillars and support programs

Key Recommendations for DOL Worker Coop Support Strategy III

Pillar 1: Information and Technical Support Provision•Support Program 1: Worker Cooperative Development Advice•Support Program 2: Worker Cooperative Turn Around, Expansion and Innovation•Support Program 3: Worker Cooperative Take Overs

 Pillar 2: Legislative and regulatory support•Support Program 1: Administration, Registration and Inspection of Worker Cooperatives Act •Support Program 2: Education on Worker Cooperative Act Compliance

Key Recommendations for DOL Worker Coop Support Strategy IV

Pillar 3: Harnessing Inter-governmental and Non-governmental support•Support Program 1: Intergovernmental Liaison and Technical Support Coordination•Support Program 2: Outreach and Strategic Partnerships

Key Recommendations for DOL Worker Coop Support Strategy V

Pillar 4: Worker Cooperative Working Capital Support•Support Program 1: Working Capital Fund

Pillar 5: Knowledge Production and Diffusion•Support Program 1: Research Support and Learning Platform

Employment counselling on cooperatives

• Provide employment counselling on what Cooperatives entails

• Provide information on types of products and services that a cooperative can entail,

• Provide information to work seekers on where they can obtain additional information and assistance on cooperatives.

• Provide work seekers with soft skills on how to prepare a business case.

DOL future interventions on cooperatives

• Improve our networks and partnerships with a series of funding and training organisations involved in cooperatives.

• Find best ways of implementing DOL research outcomes on cooperatives.

• Pilot cooperative concepts in some of the Employment Schemes.

Thank you