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

 Challenges and Lessons ISSUES TO COVER  Context  Purpose  Governance  Structure  Process  Key Focus for 2004  Impact  Challenges and Lessons

The First Democractic Government -1994 - Poverty - Unemployment 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

Bet. 1986 – 92 average annual growth HISTORICAL FACT 1960s real GDP averaged @ 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% @ the same time Job Creation fell to zero in the 80’s and to negative territory in 1986. 5million people deciding what’s good for over 38million people.

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)

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 DISPUTE PREVENTION – S77 OF THE LRA

National Summit Executive Council Management Committee DEVELOP-MENT STRUCTURE Nedlac Structure National Summit Executive Council Management Committee CHAMBERS DEVELOP-MENT TRADE & INDUSTRY LABOUR MARKET PUBLIC FINANCE & MONETARY POLICY

Business Unity South Africa 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,

workshops and seminars PROCESS negotiation consultation dispute resolution problem-solving SUPPORTING TOOLS research publications workshops and seminars capacity-building

Over 100 Agreements to date. Institutionalised opportunity to 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.

Translating Nedlac into a world class 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

Performance measurements and periodical impact assessment. 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

Social dialogue is a process and not an event. 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.

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