Regulating labour relations

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The post-1994 labour legislation, the product of extensive consultation between government, labour and employers, has established institutions to nurture sound, co- operative industrial relations.

regulating labour relations
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. (Image: South African Federation of Trade Unions)

Brand South Africa reporter
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 institutions to nurture sound, co- operative industrial relations:

National Economic, Development and Labour Council

Nedlac aims to allow inclusive and transparent decision making about labour issues. Launched in 1995, it brings together representatives from all sectors of society who debate and try to reach consensus on social and economic policy issues in what the body terms “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 Unity South Africa, an umbrella body which brings together the Black Business Council and Business South Africa.

Organised community is represented by the South African Youth Council, the National Women’s Coalition, the South African National Civics Organisation, Disabled People South Africa, Financial Sector Coalition and the National Co-operatives Association of South Africa.

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.

Commission for Conciliation, Mediation and Arbitration

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. It replaced the Industrial Court.

The CCMA’s main brief is to:

  • Mediate to prevent and settle industrial disputes;
  • Conciliate workplace disputes;
  • Arbitrate disputes that remain unresolved after conciliation; and
  • Facilitate the establishment of workplace forums and statutory councils.

Commissioners are selected on the strength of their experience and expertise in labour matters, particularly relating to dispute prevention and resolution. The CCMA has offices in major towns in all nine provinces.

Commission for Employment Equity

The focus of employment equity is to create equitable workplaces that are free from unfair discrimination. South African businesses are legally obliged (under the Employment Equity Act) to ensure representation of black people, women and people with disabilities in the workplace.

A statutory body that falls under the Department of Labour, the Commission for Employment Equity monitors employers who employ 50 or more workers to ensure that they:

  • Eliminate unfair employment discrimination by promoting equal opportunity and fair treatment; and
  • Achieve a diverse workforce that is broadly representative of South Africa’s people.

The nine-member commission is appointed by Nedlac, and includes a chair and eight members (two representatives each from the state, organised labour, organised business and community).

Employment Conditions Commission

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 commission’s brief is to advise the Labour Minister on any matter concerning basic conditions of employment and trends in collective bargaining.

Productivity SA

Productivity SA 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.

National Skills Authority

The 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.

As part of this developmental approach, employers are obliged to contribute a percentage of their annual payroll towards skills training. The Skills Development Levy is paid to the SA Revenue Service, the majority of which is distributed to Sector Training and Education Authorities (SETAs).

Unemployment Insurance Board

The Unemployment Insurance Board advises 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.

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