/ 15 May 2007

Minister dismisses changes to labour laws

The legislative framework underpinning South Africa’s labour market “is sound” and shall not be altered, South African Labour Minister Membathisi Mdladlana said on Tuesday.

He was speaking in his budget vote in an extended public committee in the National Assembly.

Mdladlana said last year the government had undertaken in Parliament to examine the extent to which “our labour market” was enhancing job creation, particularly for small, medium and micro enterprises.

“We undertook this task in a very inclusive manner involving all the key stakeholders in the labour market, and those that participate in Nedlac [National Economic Development and Labour Council]. Round-table discussions and bilateral meetings were convened with all the social partners [including business].”

A common understanding had emerged, he said. First that the broader context underpinning South Africa’s legislative framework — “including the objectives of our policies and their redistributive role in improving the working and living conditions of our society” — was sound.

Second, social partners agreed that the issues of job creation and small-business development had to be located in “a broader context inclusive of macro-economic, social and trade policy issues and not be limited to labour market policies alone”.

Third, that while fundamentals of the legislative framework were sound, “weaknesses remained on the implementation and operational side that impact on the efficiency and effectiveness of our labour-market systems; implementation is therefore an area we need to work harder on”.

He noted that his department had asked the International Labour Organisation to conduct a swift review of the South African labour market “in a manner that would help shape our approach to resolving these institutional challenges where they exist”. — I-Net Bridge