Government+to+press+ahead+with+labour+reform



=Government to press ahead with labour reform=


 * //But it still aims to win the support of Cosatu despite its vehement oposition, writes Paul Stober//**

Sunday Times, Johannesburg, 10 July 2005
The government is set to push ahead with its efforts to reform the South African labour market and reduce the cost of doing business in South Africa.

This despite the national general council (NGC) of the ANC turning down proposals for far-reaching reform of the labour market earlier this month. The reforms form part of the government’s package to kickstart growth and job creation.

The NGC is one of the highest policy-making bodies of the ruling party.

The Congress of South African Trade Unions (Cosatu) has also made it clear that it is vehemently opposed to moves to water down the labour laws.

Deputy Finance Minister Jabu Moleketi is credited with drawing up the ANC discussion document that includes proposals for easing the country’s labour market regime.

“What is important is that [in pressing ahead with its plans for economic reform the government] is not trying to undermine the spirit of the NGC,” Moleketi explained.

“But there has to be an acceptance that policy making is characterised by experimentation, so … a number of things will continue to happen within government … that will inform the outcomes of policy interventions.”

He was speaking to Business Times on Thursday.

Moleketi was referring to reports that the Department of Trade and Industry, and the Presidency, were reviewing the effects of legislation on small businesses, including the Basic Conditions of Employment Act.

It was believed that the failure of the NGC to agree to the proposals set out in Moleketi’s discussion document would stymie the government’s plans for economic reform.

But Moleketi insists: “Rejection [of the document] was never used as a term, either in the commission or in the plenary session. People said: ‘Let’s open up the scope and begin to look at other measures that need to be taken, not just focus on the labour market.’

He says, that in the aftermath of the NGC, the government will be having its own lekgotla. “That is where you will see practical things happen.

“I think it is important to understand that there isn’t a policy stalemate. There is going to be movement forward in a whole range of areas.”

But, given the resistance to the proposals by the NGC, and especially by the Cosatu, the government is likely to proceed much more cautiously than it had, perhaps, originally planned.

For example, on the rejection of the proposal for a dual labour market, intended to ease conditions of employment, especially for the young, Molekti chose his words carefully.

“I'm not saying there will be any legislation. That would have to go through the National Economic Development and Labour Council [in which the government, labour and business are supposed to negotiate economic policy].

“At this point there is less readiness to face the reality of de facto duality in the labour market.”

He had earlier pointed out that up to 20% of mineworkers were casual employees and that many telecentres seemed to have found a way of employing young people without complying with the labour laws.

Moleketi repeatedly described the aim of his controversial document as being to stimulate discussion about the country’s economic policy.

“It has been very successful at that,” he remarked about a document that became the lightening rod for labour’s dissatisfaction with the government's economic policy.

Moleketi sees the NGC discussions on the document as the first step in an effort to get the government, labour and business ready to make hard decisions about a package of measures that will increase economic growth and job creation.

“That will move the debate forward from ‘We don’t want a dual labour market’ to ‘How can we create a labour-absorption environment in SA?’”

He is stoical about the sharp criticism of his discussion paper by the NGC.

“I went in there carrying no brief. I said these are the challenges and possible solutions. We’re still very good friends of Cosatu.”

Moleketi is worried that South Africa’s growth is being driven by an “unsustainable” consumer boom.

He warned that consumer spending was dependent on low interest rates which could be threatened by local inflation and unpredictable global events.


 * From: http://www.sundaytimes.co.za/articles/article-business.aspx?ID=ST6A129134