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LABOUR RELATIONS STABILITY

AN INSIGHT TO ISSUES UNDER DISCUSSION AT NEDLAC ON LABOUR RELATIONS STABILITY, WAGE INEQUALITY AND THE EMPLOYMENT TAX INCENTIVE Tanya Cohen

LABOUR RELATIONS INDABA

 To promote employment and strengthen dialogue  November 2014 Declaration identified key

challenges with the labour relations environment

 Violent and protracted strikes and stability  Wage inequality and low wages  Weak collective bargaining  Inadequate social protection and  Unemployment and vulnerability in employment

 NEDLAC process initiated with Committee of

Principals and two task teams with business representation by BUSA and BBC members

WAGE INEQUALITY

 National Minimum Wage in the context of poverty,

inequality and unemployment

 Various positions:

 Constituency composition considerations  Objectives of a national minimum wage  Research and modelling  ILO guidance

 Consideration on the definition, exclusions, the

body and compliance

 Without prejudice discussions led to establishment

• f a National Minimum Wage Review Panel

 Business position in summary

LABOUR RELATIONS STABILITY

• 1. Code of Good Practice on Collective Bargaining and Industrial

Action

 Purpose  Collective Bargaining, Good Faith, Negotiator Capacity,

Preparation for Negotiations, Disclosure of Information

 Workplace Participation  Industrial Action, Constitutional Rights, Ballots, Peace

Obligations and Role of Police and Private Security

 Picketing

• 2. Legal changes



expedited hearings, S188, conciliation process extensions, picketing

• 3. Protocol with expedited criminal processes
• 4. Compulsory Advisory Arbitration
• 5. Strengthening collective bargaining
• 6. Balloting Provisions

EMPLOYMENT TAX INCENTIVE

• 1. Incentive applies between January 2014 – December

2016 for employees earning between R2000 – R6000, 18 – 29 year olds in first time employment. The incentive is paid through a reimbursement to employers of PAYE

• 2. In excess of 680 000 jobs supported in 2014/15, at a cost
• f R2.6 bn (R6.6 overall to date)
• 3. Currently under review, demonstrating:



Creating of new jobs



Retaining and preventing jobs loss



Good retention rates after the incentive finishes



No displacement of older workers



Incentivises compliance

• 4. Effective, targeted intervention
• 5. Rigorous analysis of the scheme
• 6. Social partner commitment to employment