Address by Deputy President Cyril Ramaphosa at the Labour Relations Indaba, November 4 2014

Promoting Employment and Strengthening Social Dialogue: Towards Transformation of the South African Labour Relations Environment

Programme Director,

Minister of Labour, Mildred Oliphant, 

Leaders and representatives of Nedlac constituencies,

Ladies and Gentlemen,

We meet today to address obstacles that stand in the way of faster economic growth, create jobs and reduce inequality. 

This Indaba presents us with a great opportunity to initiate meaningful changes in our economy. Our deliberations here, and the engagements that will follow, must necessarily strengthen our efforts to forge a common economic and social vision.

I must commend the NEDLAC constituencies for the efforts you have made to ensure that we are able to gather here today. 

All social partners have responded enthusiastically to the call by President Jacob Zuma in his State of the Nation Address to engage on the challenges that face us in the labour relations environment. 

It says something of that commitment that we have been able to agree a number of principles that will guide our discussions today and that will frame the processes going forward.

We recognise that this Indaba is the start of a process that will require intensive and detailed interrogation of these issues. We do not pretend that it will be a smooth process. There are issues on which we differ, and there are areas that remain unchartered.

We will need to work together in the coming months to develop more concrete proposals on how to promote labour market stability and address income inequality. 

Our situation is not unique. 

The context of social dialogue in many parts of the world has changed. Countries are grappling with persistent unemployment, poverty, inequality and economic instability. 

As economies become increasingly stressed, so too do social bonds become increasingly frayed.

Yet, as South Africa, we have a strong tradition of social dialogue on which to draw.

Our ability to work together to overcome seemingly intractable problems is demonstrated in the nature of our democratic transition, the adoption of our Constitution, and the establishment of institutions like Nedlac.

Through social dialogue we have been able to navigate through decades of accumulated hostility and mistrust to forge common solutions.

There are many countries that have embraced social dialogue and adopted it as a governance paradigm for promoting social justice, fair and peaceful workplace relations and decent work. It has contributed significantly to social and economic progress in many parts of the world. 

Programme Director,

As social partners, we need once again to engage in meaningful dialogue to confront these two particular challenges - labour instability and wage inequality.

By no means do these challenges represent the sum total of issues that we need to address in our economy or even in our labour relations environment. 

But these two challenges are both urgent and critical. 

Effectively addressed, they will expand the capacity of our economy and improve the livelihoods of millions of our people.

They will provide a platform for greater social dialogue on the broader issues of economic and social transformation that we need to confront.

There is now broad agreement that collective bargaining in South Africa is under stress. 

Settlement agreements take longer to conclude, strike action has increased, shop floor labour relations have weakened and, in some instances, confidence in trade unions has eroded. 

Persistent inequality, weak economic performance, high unemployment and other socio-economic factors place pressure on the parties to collective bargaining and strain our labour relations regime. 

Labour market vulnerability and job insecurity add to these pressures. 

There is a risk that our labour relations regime, which has been a positive force for change and which has attracted international praise, will be gravely weakened.

Programme Director,

Given the seriousness of the challenges that face us, let us not be tempted to find solutions to everything, at the risk of solving nothing. 

The process that we are starting today should result in agreement on concrete interventions that will give rise to measurable improvement in labour relations stability.

As we engage on these issues, let us work towards agreement on policies and interventions to address systemic challenges of poverty, inequality and unemployment. 

What we do today and the process that we will embark on today will undoubtedly shape our chances of improving long-term growth and investment in the economy. 

Key to our chances of improving growth will be our ability, through social dialogue, to arrive at a shared vision, build trust and improve cooperation among all social partners.

We have it within our means, starting with this Labour Relations Indaba, to transform the labour relations environment.

We have the will. We have the commitment. 

We can and must succeed.

I thank you.

Issued by The Presidency, November 4 2014

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