Minister to engage labour on ''adversarial'' industrial relations

Wednesday, May 22, 2013

Cape Town – The Minister of Labour, Mildred Oliphant, wants to discuss what she described as the adversarial nature of industrial relations as well as explore ways of arresting the potential threat to the system of collective bargaining with the labour movement.

The minister said that ructions in the mining industry, especially in the platinum belt, had changed the collective bargaining framework. It had also caused a considerable dent in the economy, the effects of which would be felt well into the future.

In her Budget Vote speech in Parliament on Wednesday, she said talks about the character of a new and centralised bargaining arrangement in the platinum sector were also continuing.

She announced that the department would hold a labour relations indaba to discuss the changes in the nature of collective bargaining. It would be an opportunity to engage stakeholders and roleplayers in a conversation on the future of collective bargaining and social dialogue.

“We want to generate greater interests and concerns of social partners in respect of labour relations conflict and identify measures to strengthen labour relations and dialogue in order to achieve labour marker stability and peace,” Oliphant said.

In addition to the mining labour problems, strikes in the road freight sector and protest action by Western Cape farmworkers reminded South Africa of just how important the “responsible exercise of labour relations to the country and the economy is,” she said.

The department would continue to protect vulnerable workers by using sectoral determinations, which she called one of the most effective tools for this purpose. These determinations regulate the minimum wage that workers can earn in any given industry.

In the past year, the department has amended and reviewed the determinations in the hospitality, contract cleaning, taxi, private security, civil engineering, retail and farmworker sectors.

Oliphant said proposed changes to the Unemployment Insurance (UIF) Act would give increased benefits to beneficiaries, increase the benefit period from 8 to 12 months which means workers will be paid over a longer period without additional contributions, and give domestic workers maternity benefits.

Also, the income replacement rate for women on maternity leave would be increased to 66 percent from 38 percent. Workers will also get adequate time to claim UIF benefits - up from six months to 18 months for death benefits and 12 months for other benefits.     

Changes to the Compensation for Occupational Injuries and Diseases Act were also being mooted. These changes will ensure that domestic workers and farmworkers were also covered by these protective measures.

The department would also look at amending the act governing Occupational Health and Safety Act, and other labour legislation such as the Employment Services Bill, presently before Parliament.  

Oliphant said the fight against the scourge of child labour, the tot system and contract labour would continue.

Looking ahead, the minister said that over the R30.4 billion had been allocated to Ditsela, the workers’ education institute that tries to build capacity by training union officials.

The UIF continued to play a vital role in creating jobs. A partnership between the UIF and the Industrial Development Corporation created 21 234 new jobs and saved 20 161 jobs for the period ending on 31 March 2013.

During the 2013/14 financial year more than R8 million will be invested in mining beneficiation, agriculture, tourism and manufacturing.

The Public Investment Corporation has been allocated R3.2 billion to plough into job creation projects.

As part of funding Productivity South Africa’s Turnaround Solutions, an agreement of R39 million per annum over three years will be used to assist companies in distress to save jobs and keep people in employment.

On the Inspection and Enforcement Services, she said that the department had adopted a more targeted approach to deal with the most problematical sectors in the past year. A total of 141 744 inspections were carried out. Of these, 112 672 were done in problematic sectors, and 28 803 were in high risk ones.

Compliance levels in the problematic sector stood at 64 percent, indicating that it was stabilising, while a recording of 54 percent in the high risk sector showed a decline in compliance levels.

The department received an appropriation on R2.415 billion for 2013/14. The focus of the spending over the medium term will continue to be the protection of vulnerable workers, reintegration of work-seekers into the labour market and ensuring decent work.

However, the first priority in the coming financial year would be to work together to achieve a peaceful environment in labour relations and collective bargaining, Oliphant said. – SAnews.gov.za