National Economic Development and Labour Council (NEDLAC)

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National Economic Development and Labour Council
(NEDLAC)
PRESENTATION TO THE SELECT COMMITTEE ON LABOUR
AND PUBLIC ENTERPRISES 12 OCTOBER 2004
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ISSUES TO COVER

• ? Context
• ? Purpose
• ? Governance
• ? Structure
• ? Process
• ? Key Focus for 2004
• ? Impact
• ? Challenges and Lessons

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CONTEXT

• The First Democractic Government -1994
• - Poverty
• - Unemployment
• - Economic Stagnation
• Racism and
• Inequality
• ?Dealing with just one of these issues would have
  been a formidable challenge for any government
  having to tackle all five at the same time is a
  daunting task indeed.
• ?In addition to the five already difficult
• challenges, another was emerging.
• Globalisation

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HISTORICAL FACT

• ?1960s real GDP averaged _at_ 5.5
• ?1970s fell to 3.3
• ?1980s fell again to 1.4
• Bet. 1986 92 average annual growth
• of real GDP fell to 1 _at_ the same time
• ?Job Creation fell to zero in the 80s and to
  negative territory in 1986.
• ?5million people deciding whats good for over
  38million people.

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CONTEXT

• Increased participation - by all major
  stakeholders, in policy formulation.
• Success of negotiated political transition to
  democracy in South Africa
• The role of business, labour and government in
  laying the foundation for meaningful social
  dialogue
• The inclusion of other civil society formations
  in social dialogue processes. (Unique to SA)

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SOCIAL DIALOGUE

• NEDLAC ACT (ACT NO 35 OF 1994
• THREE BROAD OBJECTIVES
• SUSTAINABLE ECONOMIC GROWTH
• GREATER SOCIAL EQUITY
• INCREASED PARTICIPATION IN ECONOMIC
  DECISION-MAKING AT ALL LEVELS
• SPECIFIC RESPONSIBILITIES
• CONCLUDE AGREEMENTS ON AND CONSIDER ALL
  SIGNIFICANT
• CHANGES TO SOCIAL AND ECONOMIC POLICY
• CONSIDER ALL PROPOSED LABOUR LEGISLATION
• ENCOURAGE COORDINATED POLICY-MAKING

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STRUCTURE
Nedlac Structure

• CHAMBERS

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CONSTITUENCIES

• Organised Labour
• Cosatu, Fedusa, Nactu
• Organised Business
• Business Unity South Africa
• Government
• labour, trade and industry, finance and public
• works.
• coordinated through Minister of Labour
• Community Constituency
• Youth, women, civics, co-operatives people
  with disabilities, FSCC,

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PROCESS

• negotiation
• consultation
• dispute resolution
• problem-solving

SUPPORTING TOOLS

• research
• publications
• workshops and seminars
• capacity-building

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IMPACT

• Over 100 Agreements to date.
• Institutionalised opportunity to
• participate in social and economic
• policy-formulation.
• Increased buy-in by civil society
• Ongoing interaction between parties
• even if in dispute over issues.
• Mobilises the support of members of
• participating organisations.

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CHALLENGES

• Translating Nedlac into a world class
• social dialogue institution for delivery.
• Translating commitment into tangible
• deliverables. (GDS)
• Membership leadership gap
• Lead times in obtaining mandates
• Not the core function of constituencies
• Capacity to deal with complex and often
• foreign issues.
• Maximising the value of Social dialogue

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LESSONS

• Performance measurements and
• periodical impact assessment.
• Managing diverse expectations.
• Social dialogue is a process and not an
• event.
• Impact of policy intervention is often
• medium to long term.
• Prioritization.
• Commitment

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LESSONS

• Social dialogue is a process and not an
• event.
• Impact of policy intervention is often
• medium to long term.
• ?Expectations are often very high-You
• cannot be everything to everyone.
• ?The role of the secretariat has to be
• meaningful.
• ?National agenda is often influence by
• factors outside of the national
• boundaries.

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KEY PRIORITIES GOING FORWARD

• Implementation of the Growth and
• Development Summit Agreements (GDS).
• - Jobs Creation
• - Addressing the Investment
• Challenge
• Promoting equity and skills
• development
• Local action and implementation
• Policy coordination
• Participation