Regulating labour relations
South Africa's labour legislation is among the most progressive in the world, providing for institutions to settle disputes and ensure fairness in the workplace.
This was not always the case. Industrial relations in the apartheid era were characterised by high levels of racial discrimination, conflict, union repression, cheap labour policies and authoritarian management style.
The post-1994 labour legislation, the product of extensive consultation between government, labour and employers, has established nine institutions to nurture sound, co-operative industrial relations:
National Economic, Development & Labour Council
- Tel: (011) 328 4200
- Fax: (011) 447 6053/ 2089
- Web site
Nedlac was launched in 1995 following the unanimous passage of the Nedlac Act by Parliament in 1994. The basis of Nedlac lies in the anti-apartheid struggle against unilateral decision-making and campaigns from all sectors of society for decisions to be taken in a more inclusive and transparent manner.
Nedlac is composed of representatives from government, organised labour, organised business and community groupings who debate and try to reach consensus on social and economic policy issues in what the body calls “social dialogue”.
Funded by the Department of Labour, Nedlac’s work is conducted in four chambers: the labour market chamber, the trade and industry chamber, the development chamber and the public finance and monetary chamber. The chambers report to a management committee which oversees the work programme and administrative issues.
Organised labour is represented in Nedlac by the three main labour federations, the Congress of South African Trade Unions, National Council of Trade Unions and the Federation of Unions of South Africa. Organised business is represented by Business South Africa, an umbrella body of 19 employer organisations, and the National African Federated Chamber of Commerce.
The government delegation to Nedlac includes ministers, directors-general and senior officials from ministries and departments including Labour, Finance, Trade and Industry and Public Works.
The Act empowers Nedlac to:
- Strive to promote the goals of economic growth, participation in economic decision-making and social equity.
- Seek to reach consensus and conclude agreements pertaining to social and economic policy.
- Consider all proposed labour legislation relating to labour market policy before it is introduced in Parliament.
- Consider all significant changes to social and economic policy before it is implemented or introduced in Parliament.
- Encourage and promote the formulation of co-ordinated policy on social and economic matters.
Nedlac’s highest decision-making body is the executive council, which consists of senior government, business and trade union officials as well as leaders of community organisations representing the women’s, youth, disabled and civic sectors.
The executive council meets four times a year to discuss key strategic issues facing the economy. Once a year, Nedlac holds an annual summit to review its work.
Commission for Conciliation, Mediation & Arbitration
- Tel: (011) 377 6600/ 50
- Fax: (011) 377 6658/ 78/ 80
- Postal address: Private Bag X096, Marshalltown 2107
- Web site
- Contact the CCMA office in your province (click on "contact details")
- Online application forms, including dispute referrals and requests for arbitration (click on "referral forms").
The Commission for Conciliation, Mediation and Arbitration (CCMA) was established in terms of the Labour Relations Act of 1995 as a dispute prevention and resolution body. Although it is publicly funded, it is not controlled by any political party, trade union or business organisation.
Its policy-making structure is an 11-member governing body comprising three state representatives, three representatives of organised labour, three representatives of organised business, a chairperson and the director of the CCMA.
The governing body is nominated by the National Economic, Development and Labour Council, while the CCMA director is nominated by the governing body.
The CCMA has offices in major towns in all nine provinces. The governing body appoints teams of full-time commissioners for each provincial office, supported by a complement of part-time commissioners.
The commissioners are selected on the strength of their experience and expertise in labour matters, particularly relating to dispute prevention and resolution. Their main brief is to:
- Mediate to prevent and settle industrial disputes;
- Conciliate workplace disputes; and
- Arbitrate disputes that remain unresolved after conciliation.
In the five years since it started operating, about 460 000 disputes have been referred to the CCMA – an average of more than 92 000 cases per year. Betwen 1 April 2000 and 31 March 2001, 103 096 disputes were referred to the CCMA, representing a 16% increase over the corresponding period in 1999/2000.
Gauteng province had the highest number of referred disputes at 31%, followed by KwaZulu-Natal and Western Cape (18% and 12% respectively). The highest number of referrals came from the retail, private security and domestic sectors, with most disputes involving dismissals, unfair labour practices and mutual interest issues.
Advisory Council for Occupational Health & Safety
- Tel: (012) 309 4408
- Fax: (012) 320 2808
The Advisory Council for Occupational Health and Safety was established in terms of the Occupational Health and Safety Act to advise the Minister of Labour on policy matters relating to occupational health and safety.
It is composed of 20 members who are nominated by trade union federations, employer bodies and government departments.
A major challenge facing the council is to put mechanisms in place to reduce occupational accidents and fatalities, particularly in South Africa’s mining industry, where the fatality rate is still unacceptably high.
According to the Department of Minerals and Energy, more than 10 000 miners died and thousands more were injured in accidents between 1984 and 2001. Between 1991 and 2001, the gold mines claimed 3 496 lives in accidents, making the industry one of the most hazardous in which to work.
Commission for Employment Equity
The focus of the Employment Equity Act is to redress discriminatory practices relating to employment, occupation and income within the country’s labour market. The Act designates blacks, women and the disabled as groups that have been historically disadvantaged by disparities in employment practice.
The nine-member commission monitors employers who employ 50 or more workers to ensure that they:
For the answers to a range of frequently asked questions on employment equity, see: Employment
Equity FAQ.
- Tel: (012) 319 9111
- Fax: (012) 325 6686 or 323-6986
- Postal address: PO Box 955, Pretoria 0001
- Web site
The Compensation Board, established under the provisions of the Compensation for Occupational Injuries and Diseases Act, advises the Labour Minister on policy relating to compensation for disablement caused by occupational injuries or diseases.
The 16-member Board also advises the Minister and the Labour Department on the nature and extent of the benefits to be paid to employees who are injured or disabled at work.
According to the Labour Department, the total cost of compensation for industrial diseases in 1995 amounted to more than R35 million from 4 891 cases, while a total of 18 991 953 man-days were lost in 1997 due to occupational accidents.
Employment Conditions Commission
- Tel: (012) 309 4361
- Fax: (012) 309 4709
- Postal address: Private Bag X117, Pretoria, 0001
The Employment Conditions Commission was established in terms of the Basic Conditions of Employment Act, which aims to advance economic development and social justice by regulating the right to fair labour practices.
The five-member commission’s brief is to advise the Labour Minister on any matter concerning basic conditions of employment and trends in collective bargaining.
National Productivity Institute
The National Productivity Institute (NPI) is a tripartite body of employers, government and labour dedicated to the development and enhancement of South Africa’s productive capacity through research, information dissemination, training, facilitation, consultation, auditing and monitoring all productivity issues and challenges.
The Institute has four major programmes:
- Administrative productivity. Using Integrated Business Control software, the NPI measures and benchmarks productivity in an administrative work environment, in order to help organisations improve their administrative productivity.
- Training of skills development facilitators. The NPI also prepares training materials for organisations to develop employees’ skills.
- The Workplace Challenge. A joint initiative with Nedlac and the Department of Trade and Industry to help industry meet the challenge of South Africa’s re-entry into the global market by increasing their competitiveness.
- The Social Plan. The Social Plan aims to minimise the economic impact of large-scale retrenchments, in line with the Declaration of the Presidential Jobs Summit of October 1998. This is done through a technical support facility which evaluates an industry or organisation’s plan to prevent large-scale retrenchments, and provides guidelines that have to met before assistance can be given.
- Tel: (012) 309 4000
- Fax: (012) 309 4718
- Postal address: Private Bag X114, Pretoria 0001
The 29-member National Skills Authority was established in terms of the Skills Development Act and is made up of representatives from organised business, labour, government and community organisations. Its main function is to advise the Labour Minister about a national skills development strategy and its implementation.
The Act seeks to address the reality of the global economy and the need to increase skills in the country to improve productivity and the competitiveness of industry, business, commerce and services. It also looks at ways of making society more inclusive.
Related to the Skills Development Act is the Skills Development Levies Act, both of which introduce new institutions, programmes and funding policies designed to increase investment in skills development.
In March 2000, 25 Sector Education and Training Authorities were established, followed in April 2000 by the introduction of a payroll levy to fund the new skills development implementation framework.
In terms of the Skills Development Levies Act, employers must contribute one percent of their annual payroll towards skills training in order to address the shortage of skilled workers in the country. Between 1970 and 1998 the demand for highly skilled jobs increased by nearly 20%, while the number of unskilled jobs fell by a similar proportion, although by a far greater number.
- Tel: (012) 309 4347
- Fax: (012) 320 0792
The Unemployment Insurance Board is made up of 14 members who have the task of advising the Labour Minister on:
- Unemployment insurance policy;
- Policies arising out of the application of the Unemployment Insurance Act;
- Policies for minimising unemployment; and
- The creation of schemes to alleviate the effects of unemployment.
One of South Africa’s major challenges is the grave unemployment situation. According to official estimates for 1997/1998, 35% of economically active adults are unemployed.
In October 1995, out of 14.4 million economically active adults, 4.2 million were unemployed. Unemployment is higher among the black population, and women are the most affected at 65%.
