Much delayed, the new Labour Relations Act could fall flat if a key element, the CCMA, fails to fulfill its brief, reports Max Gebhardt
BUSINESS and labour are worried that the new Labour Relations Act (LRA) could trip up before it even gets off the starting blocks on November 11. Its success hinges on whether the Commission for Conciliation, Mediation and Arbitration (CCMA) will be able to effectively hold together the fabric of the Act.
The commission is integral to the new labour law and the stakeholders fear it may not have the ability and resources to fulfill its intended obligations.
Already, Labour Minister Tito Mboweni has come under increasing criticism for the many delays and amendments to the Act.
Chamber of Mines industrial relations adviser Adrian Du Plessis says the successful discharge of the commission’s role is fundamentally essential to the Act.
The LRA will usher in a new labour dispensation, together with a set of major new institutions, systems and procedures. And the commission, led by Charles Nupen, is a key independent statutory institution in this system.
Reservations are, however, being expressed that the newly trained commissioners may not have the experience to handle the sheer volume and complexities of labour disputes referred to the CCMA.
Concern has also been raised over whether the commission will be able to perform effectively given its budgetary constraints. Business and labour are adopting a cautiously optimistic view, but stress the eventual success of the LRA will rest on whether the CCMA will be able to effectively deliver a speedy mediation and arbitration service.
The stated objectives of the CCMA are to prevent labour disputes from arising and to settle disputes that do arise by conciliation and arbitration.
The CCMA is expected to handle as many as 30 000 cases a year, with a staff of 435, including 91 full-time commissioners. It has been allocated a budget of R93,4-million for the financial year to end-March 1997, of which 43% (R39,9-million) will be devoted to salaries and wages. Senior commissioners will receive an annual package of R239 000, while junior commissioners will receive R120 000.
But, says Jayendra Naidoo, National Economic Development and Labour Council executive director, the initial size of the CCMA may be too ambitious. He was worried over whether the commission would be able to handle the administration of such a large workforce.
The director of labour affairs at the South African Chamber of Business (Sacob), Gerrie Bezuidenhout, said it had publicly stated its concerns about the level of expertise of the newly trained commissioners; a concern echoed by Steve Lenahan, industrial relations consultant for the Anglo American Gold Division.
“We do have a serious concern about the design of the commission, given the budgetary constraints and the number and quality of commissioners,” Lenahan said.
Industry analysts point out that should the CCMA fail it will place a considerable strain on the effective working of the new Act.
Nupen agrees that a number of commissioners have minimal experience in dispute resolutions. He does not feel, however, that this should affect the overall running of the commission.
“The full-time commissioners will be complemented by access to a body of part- time commissioners with extensive experience in dispute resolution.”
The only way his commissioners will be able to gain experience, he says, is through day- to-day exposure to the conciliation and arbitration process.
“There are internal devices to decide on the complexity of each individual case and the appropriate commissioner will then be assigned,” Nupen said.
He conceded that there will be some initial mistakes and some understandable teething problems. “The institution is in the process of development. That process will take many months.”
The commission has set a target success rate of 50% or higher in the conciliation process – a significant increase on the present estimated 12% success rate achieved by the Industrial Council.
Bezuidenhout says Sacob expects the larger institutions to retain their own private arbitrators and industry dispute mechanisms already in existence. The statute recognises private agreements and bargaining councils and sanctions the use of private agencies and dispute resolution procedures.
“The bulk of businesses and labour will, though, rely on the CCMA, especially smaller businesses,” he said.
Naidoo said industry stakeholders should not expect the first few months to be rosy. He feels it will take at least one or two years before the commission will be running effectively.
“One has to set a modest and pragmatic measure of success or failure. The function of the commission is to facilitate in disputes. They cannot guarantee success, that will be in the hands of the parties involved,” he said.
Nupen is expecting his commissioners to handle up to two conciliations per day. “We do not have the luxury of time that private agencies have.”
Harold Harvey, deputy secretary-general of the Transport and General Workers Union, added his concern over whether the heavy workload on staff will affect the quality of service.
“The commission should expect a period where there will be a lot of headbutting against the Act from the shopfloor,” Harvey said.
But Nupen says he will only be able to assess the capacity of the CCMA once it opens its doors. “Maybe in the medium term we will have to develop our human resource capacity, depending on the volume we have to handle.”