national economic development and labour...

National Economic Development National Economic Development and Labour Counciland Labour Council

Briefing to the Portfolio Committee on LabourNedlac Strategic Plan March 2011

By Herbert Mkhize

Executive Director

22 March 2011

(NEDLAC)

Our Raison Our Raison D'être and GenesisD'être and Genesis

NEDLAC's Foundation

NEDLAC's Architecture

NEDLAC PRINCIPALSNEDLAC PRINCIPALS

GOVERNMENTGOVERNMENT

Minister of Public Works G Mahlangu- Nkabinde

Minister of Trade and Industry R Davies

Minister of Labour M Oliphant

D GeorgeGeneral SecretaryFEDUSA

M SamelaGeneral SecretaryNACTU

Z VaviGeneral Secretary COSATU

Minister of Finance P Gordhan

T Tshefuta SAYC

L KganyagoWNC

A MadellaDPSA

F Mtoba President of BUSA

A Lamprecht National Chairperson

R Bhengu SANCO

LABOURLABOUR

BUSINESSBUSINESS

COMMUNITYCOMMUNITY

NEDLAC OVERALL CONVENORSNEDLAC OVERALL CONVENORS

L Nare Community

L Lotter Business

B Ntshalintshali Labour

L Kettledas Government

http://www.aprm.org.za/images/kganyago.jpg

8

OUR STRATEGIC PLAN DRAWS ITS DIRECTIVE FROM:

Nedlac’s Remit

Simply put:

We are a conduit between the Executive Authority and Parliament on Labour

market policies and those policies that have social and economic impact.

NEDLACNEDLAC’’S ENGINE ROOMS ENGINE ROOM

MODUS OPERANDI

Key Achievements to date

PROCESSPROCESS

• Tabling of policy proposals is governed by an agreed Protocol for tabling and consideration of issues in Nedlac.

• Government tables its programmes of policy and legislation in Nedlac

–

often at the beginning of the first quarter.

• Labour, Business and the Community constituencies likewise table

their own policy issues for inclusion in the Work programme.

• Issues are tabled at least three months before sign-off is required however the Protocol has provisions for issues that require quicker sign-off.

• Parties agree at the outset whether the issue is being tabled only for consultations or negotiations, or both.

PROCESSPROCESS

• Parties then agree on a process and timeframes to expedite the matter.

• In cases where the issue falls within the terms of reference of more than one

chamber, a joint negotiation committee or task team is established.

• There may also be instances where the intervention of the relevant Minister

may be required.

• In the event that Government indicates that giving effect to the

policy require

legislation, then Government tables the draft Bill at Nedlac

for consideration.

• Once the process of engagement on the policy has been finalised,

a Nedlac

report is prepared for ratification by the Nedlac

Executive Council.

PROCESSPROCESS

• The Nedlac

report, after sign-off by the Nedlac

Executive Council, is sent

to the relevant Minister who in turn tables it in Parliament.

• Parties in Nedlac

are bound not to re-open discussion in Parliament on

any area where agreement was reached in Nedlac.

• However parties have the right to raise issues in Parliament on which

there had been no agreement, or on which a Nedlac

agreement was silent.

• If parties raise issues during the Parliamentary process on which the

Nedlac

agreement was silent, or new issues, which go beyond the

reservations captured in the Nedlac

report, they inform Nedlac

of such

issues for the record.

• Nedlac

does from time to time get given an opportunity to brief relevant

Portfolio Committees on the Nedlac

report, albeit on an adhoc

basis.

Process FlowProcess Flow

Historically the policy making process in SA assumed the following process flow:

◦

Green Paper

◦

White Paper

◦

Draft Bill

◦

Bill

Inherent in social dialogue is that it takes time for it to produce meaningful consensus

that ultimately leads to real partnership.

It would therefore be correct to assume that if government tables a policy that does

not

solicit broader consensus among the key social partners, that should be taken very

seriously by the legislators.

This should also inform legislators of the potential implementation difficulties that the

policy would likely to suffer if signed off;

Nedlac has acted as an important yardstick to measure the extent to which policies

could find resonance with the needs of the citizens.

Therefore it follows that where social partners find absolute consensus or sufficient

consensus on the policy thrust, ownership of such policies is co-shared.

This arguably makes implementation much easier and most of all prevents unnecessary

l l h ll d bbl

Key Observations

Key Issues In Each Of The Policy Work StreamsKey Issues In Each Of The Policy Work Streams

Management Committee ◦

Comprehensive Social Security Policy framework & Retirement Refunds

reforms

◦

Energy –

Security of supply

◦

Decent Work Country Programme

◦

Global Jobs Pact

◦

Superior Courts Bill

◦

National Poverty line & Poverty Measures

◦

New Growth Path

◦

Anti-Poverty Strategy

◦

Confronting

Youth unemployment Policy; Options for South Africa

◦

Labour Market Policy Review

◦

National Budget framework

Labour Market Policy Chamber:

o Superior Courts Bill

o Labour Market Policy Review

o Employment Equity Amendment Bill

o Labour Relations Act Amendment Bill

o Basic Conditions of Employment Amendment Bill

o Public Employment Services Bill

o Decent Work Country Programme

o Skills Development

o Human Resource Development Strategy –

South Africa

o Demarcation Disputes(Standing

Committee)

o Confronting Youth unemployment Policy Options for South Africa

Key Policy issues under considerationKey Policy issues under consideration

21


Public Finance and Monetary Policy:

◦

Fiscal Policy

◦

Monetary Policy

◦

Savings

◦

Financial Sector Charter Council

◦

MTBPS

◦

Infrastructure Investment Program

◦

WTO –

Derivatives

◦

Global Financial Crisis Aftermath

◦

National Health Insurance Scheme


Trade and Industry Chamber:

Energy: Security of Supply: IRP2 and Risk Mitigation Plan

Climate Change

Review of the Development Finance Institutions’ mandates.

Fast tracking the finalisation of the Cooperatives Strategy and the Implementation Plan.

Enhancing the role of Multi National Companies in the African Continent

Targeted Procurement for Small Enterprises

Trade monitoring and illegal imports

Bilateral and Multilateral Trade Negotiations

WTO Trade Policy Review

European Economic Partnership Agreement (EPA)

Trade and Industry Chamber:

Customs Act

ITAC Act

Trade and the Environment

Medicines and Related Substances Bill

Land reforms and agriculture

Fisheries Policy

Research and Development

SADC-EPA


24


Trade and Industry

◦

Co-operatives Amendment Bill

◦

Preferential Procurement

◦

Intellectual Property; Protection of Indigenous Knowledge

◦

Customs Control and Customs Duties

◦

Administered Prices

◦

IPAP 2

◦

Waste Water Management & Acid Mine Drainage

◦

Regional Investments

◦

Climate Change


Trade and Industry

◦

Fridge StudiesImport Parity Pricing

Electricity Tariffs – Cushioning the Poor

Retail Sector Transformation

Overview of the economic instruments to support climate change mitigation

Customs Fraud

Essential Oils Study

Study on Chemicals

Water Quality


Trade and Industry ◦

Trade

WTO

SACU – EFTA

SACU –USA

SACU – MERCUSOUR

SACU – INDIA

SADC – Protocol Review

SADC – EAC- COMESA

SADC – EPA

Bilateral Investment Treaties

NTBs

NAMA

SERVICES

Development Chamber:

Policy Framework for improving teaching and learningRegulatory policies for teacher/lecture qualificationsYouth Development ProgrammesExpanded Public Works (EPWP) Phase IINational Health Insurance (NHI)HIV and Aids Public Transport Anti-Poverty StrategyFood SecurityLand Reforms and AgricultureHuman SettlementsComprehensive Social Security and Retirement Funds ReformsXenophobiaCommunity Care Workers: Conditions of work


28

EstablishmentEstablishment

29

EXECUTIVE DIRECTOR Herbert Mkhize

PROGRAMME DIRECTOR Vacant

PA IN THE OFFICE OF THE ED / PD

Frieda Garvie (contract)

CFO Umesh Dulabh

COMMUNICATIONSMANAGER Vacant

RESEARCHER/PROJECT MANAGER

(Vacant)

CO-ORDINATOR IN THE OFFICE OF THE ED / PD

Itumeleng / Thami

DEV CHAMBER ADMINISTRATOR

Nandi Citwa

PFMC CO-ORDINATOR Sibongile Pheeha

DEV CHAMBER CO-ORDINATOR

Priscilla Mashabane

TIC CO-ORDINATORPhumza Maweni Brenda Skosana Amanda Mangali Nozipho Ngema

LMC ADMINISTRATOR Ruth Matotong

LMC CO-ORDINATOR Tsholo Lelaka

TIC ADMINISTRATOR Tshego Mokone

Anna Monare

RECEPTION Intern

SECURITY AND MAINTENANCE Samuel Mulwela

GENERAL ASSISTANT Doris Tshabalala

Matshidiso T

FINANCE ADMINISTATOR Sharon Lerumo

BUDGET INCOMEBUDGET INCOME

INCOME BASELINE

2011/12 2012/13 2013/142010/11

Grant (Department of Labour)15,352,000 23,915,000 23,888,000 25,305,000

Interest 255,000 500,000 500,000

800,000

Rental income (PSA)554,400 610,000 671,000 738,100

Total income16,161,400 25,025,000 25,059,000 26,843,100

30

BUDGET EXPENDITUREBUDGET EXPENDITURE

EXPENDITURE BASELINE 2010/11 2011/12 2012/13 2013/14

Capital expenditure 165,000 2,660,000 1,500,000 250,000

Communication, Meetings & events & Special Projects

6,071,400 7,806,250 8,538,350 10,373,015

Constituency Capacity support 1,925,000 2,500,000 2,750,000 3,025,000

Administration 2,500,000 3,300,000 3,500,000 3,800,000

Staff cost 5,500,000 8,758,750 8,770,650 9,395,085

Sub Total 16,161,400 25,025,000 25,059,000 26,843,100

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Some, albeit a few cases, of issues by-passing Nedlac and/or being tabled at Nedlac at

short notice.

The disconnection between the National Social Dialogue outcomes with what happens

at Provincial and Local level.

Incoherent policy objectives on some of the policy proposals that are tabled in Nedlac.

Dealing with policies that straddle more than one government department.

Positional stances that often lead to an adversarial approach and tensions in the

negotiations.

Tight timeframes to finalise issues and little or no flexibility from some government

departments.

Sequencing of policy-making processes at times undermines social dialogue.

32

InterventionsObtain buy-in from Government departments to comply with the Nedlac Protocol for Tabling and consideration of issues at Nedlac.

Build better linkages between Nedlac and the social dialogue forums at provincial levels where they exist.

Improve linkages and coordination of policy.

Bring government departments up to speed with the requirements of Nedlac Act and the Nedlac constitution.

Optimise the value of social dialogue and the role that Nedlac can play is ensuring broader buy-in on policies that government introduces from time to time.

Demonstrating that through Nedlac, the notion of the People shall govern, can become a reality.

Conclusion

Conclusion

We have a tough programme ahead of us and we will count on cooperation and stamina of all and sundry.

The call for social compacts in the New Growth Path is going to be a tough test for social dialogue.

The call to create 5 million jobs will be even tougher.

THANK YOU

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