LABOUR WELLNESS & STABILITY JAKKIE OLIVIER CEO, RMI SAAW 14 October 2014

LABOUR WELLNESS & STABILITY: Steps towards a healthier outcome for all Why steps towards a healthier outcome? What went wrong?  Recent history of collective bargaining and labour relations

RECENT HISTORY OF COLLECTIVE BARGAINING  Strike syndrome – escalating intensity  Protracted strikes  Violence/intimidation (unlawfulness)  Unrealistic demands / Unreasonable demands  On-going and more legal challenges

EMPLOYER (1) vs LABOUR CHALLENGES (2) (1) EMPLOYER  Cost of doing business  “One size fits all” approach by unions  Diversity / complexity  Inflexible labour laws  Over-regulation

EMPLOYER (1) vs LABOUR CHALLENGES (2) (2) LABOUR  Declining membership  Political agendas  Unrealistic expectations  Disconnect between union leaders and employee needs  Short-term oriented  Disregard for economic impact

THE SOUTH AFRICAN SCENARIO ECONOMIC CHALLENGES  High unemployment  Skills development  Uncompetitiveness & low productivity  Collective bargaining in a state of crisis

STEPS FOR HEALTHIER OUTCOMES – MUST DO  Acknowledge the “bigger picture”  Acknowledge the differences between business and labour  Thoughtful leadership: decisions for long-term solutions  Away with adversarial and positional bargaining

WHERE TO START? WHAT STEPS SHOULD BE TAKEN?  Question the effectiveness of NEDLAC WHY NEDLAC?  Forum for government, organised business (BUSA) and organised labour (COSATU) to interact – solution driven

NEDLAC  South African outlook vs the sectoral bargaining outlook  The involvement of top leadership (business & labour) with government

A CALL TO REFOCUS The NEDLAC agenda towards a healthier labour relations outcome

A MATTER OF PRIORITIES EXAMPLE (Simplistic view) What is more important?  Strikes / violence / intimidation / expensive conditions of employment & wages OR  Incentives / initiatives to create jobs / grow the economy

PRIORITIES The starting point remains NEDLAC and effective government intervention  “Meeting of minds” for effective decisions  Longer-term approach  Building of trust  Pro-active approach NOT WHAT FOLLOWED MARIKANA! (2012)

IN SUMMARY  Labour relations wellness – A MUST  Less regulation & more free market approach – A MUST  Labour stability – A MUST  Business development and growth – A MUST  Less unemployment, more job creation – A MUST  Effective government intervention – A MUST  BUSA / COSATU leadership – A MUST

IN SUMMARY DO OR DIE? CHANGE INEVITABLE! INDABA – 4 November 2014  SA Deputy President  The real first step?  Time will tell…

THANK YOU