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

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

3. 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

4. Bet. 1986 – 92 average annual growth
HISTORICAL FACT
1960s real GDP 5.5%
1970s fell to 3.3%
1980s fell again to 1.4%
Bet – 92 average annual growth
of real GDP fell to 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.

5. 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)

6. 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

7. 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

8. 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,

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

10. 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.

11. 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

12. 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

13. 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.

14. 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