What kind of jobs? Creating opportunities for decent work A Business Response 2008 Commissioners Indaba 19 – 21 st November 2008 Sun City, North West Province Tanya Cohen

Introduction Business supports decent work objectives and the need to engage and address growth constraints, unemployment and decent work deficits Growth sectors need attention: Type of work is not traditional Significant sources of employment Lack of understanding and appropriate policy engagement Need to grow the sectors, employment and quality of work 2008 COMMISSIONERS INDABA November 2008 Sun City

Introduction (cont) Comprehensive and frank research on the challenges pertaining to employment in ‘growth sectors’ However, the research and analysis is through traditional employment lense Research done from perspective of Labour Needs business information and what driver employment types to be more balanced 2008 COMMISSIONERS INDABA November 2008 Sun City

Focus Areas Statistical Data Analysis of LFS Data Suggested Issues for Action Conclusion 2008 COMMISSIONERS INDABA November 2008 Sun City

Statistical Data Stats SA LFS data tools limiting LFS survey data not aligned to other surveys by Stats SA Definitions of employment outdated and inconsistent with law e.g. defintion of casual No measures of employment relationships TES, part-time, casual, temporary, independent service providers Stats SA methodology based on traditional employment Data increasingly unsuited to form basis of policy analysis and development in current labour market 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data Agree that more nuanced and substantive approach to data is required Useful approach to look at a number of variables Variables selected, and what they demonstrate is problematic Formal sector is not a proxy for formal employment, and formal standard employment is not a proxy for the quality of jobs and decent work 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data (cont) Variables considered by researchers are aligned to traditional employment types ill-suited to modern types of work Not aligned to decent work agenda Inclusion of intermediate category, effectively halves the number of formal jobs, creating the impression that less employees, and new forms of work constitute decent work 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data: what does it demonstrate? Job Contract, UIF payment and leave benefits Statutory benefits For some sectors part time work payment is made in lieu of leave is permitted Pension and Medical Aid Not a statutory benefit Seldom applicable to new types of work, e.g. part time and externalised work Should be considered at sectoral / national level for decent work 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data: what does it demonstrate? (cont) Trade Union membership Decent work indicator of social dialogue at sectoral or national level? Should not be traditionally regarded at enterprise level / within a bargaining council structure E.g. sectoral determinations, 2010 summit, security agreement Employer registration status and size of employer Not really an indicator of decent work, but formality 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data: what does it demonstrate? (cont) Salary level Based on tradition notion of work and not helpful for e.g. part time workers R1500 is a per capita poverty indicator, not a decent work indicator Permanent work Not covering fixed term employment such as public works progammes 2008 COMMISSIONERS INDABA November 2008 Sun City

Analysis of LFS Data Need decent work indicators that incorporate particular country objectives: e.g. on transport, skills and employment equity Variables need to be adjusted to reflect decent work objectives at every level: Enterprise and Individual Sector National Variables need to reflect statutory requirements Variables must take account of the reality of new types of work 2008 COMMISSIONERS INDABA November 2008 Sun City

Employment Standards and Enforcement All sectors, except call centres covered by sectoral determination / bargaining council agreements and labour laws Employers and employees either not aware or do not apply obligations Social partners not always cognisant of provisions Temporary Employment Services Proposal by business through Nedlac for Self Regulated Governance Structure consisting of the social partners Would improve decent work and rights at work, without unduly compromising growth Why has no progress been made? Enabling measures required to improve compliance and meet decent work objectives Capacity building Fully resourced inspectorate 2008 COMMISSIONERS INDABA November 2008 Sun City

Issues for Action Social partners to engage on better Stats SA data tools on New forms of work Decent work indicators Social Security reform essential Safe transport imperative Leverage skills development Capacity building to ensure awareness and compliance Social dialogue Traditional methods of dialogue no longer appropriate Unpack what is needed to ensure growth, employment growth and decent work objectives Stop being in denial about new types of work Re-invent strategies and modernise approach to dialogue in these sectors 2008 COMMISSIONERS INDABA November 2008 Sun City

Conclusion Spotlight on these sectors useful platform for engagement on growth and employment constraints and decent work deficts Need to be considered at a country level Need to be more clear on what the LFS analysis is seeking to demonstrate Need to add in more growth data and business drivers to give a more holistic view Research clearly demonstrates that to look at these growth sectors, that are operating in the new world of work, through a traditional employment lense with traditional employment data tools is not helpful to the interests of any of the social partners Research lays the foundation for action which should not be delayed further 2008 COMMISSIONERS INDABA November 2008 Sun City