LABOUR WELLNESS & STABILITY

JAKKIE OLIVIER CEO, RMI SAAW 14 October 2014

LABOUR WELLNESS & STABILITY: Steps towards a healthier outcome for all

Why steps towards a healthier outcome?

What went wrong?

 Recent history of collective bargaining and labour relations

RECENT HISTORY OF COLLECTIVE BARGAINING

     Strike syndrome – escalating intensity Protracted strikes Violence/intimidation (unlawfulness) Unrealistic demands / Unreasonable demands On-going and more legal challenges

EMPLOYER (1) vs LABOUR CHALLENGES (2)

(1) EMPLOYER      Cost of doing business “One size fits all” approach by unions Diversity / complexity Inflexible labour laws Over-regulation

EMPLOYER (1) vs LABOUR CHALLENGES (2)

(2) LABOUR  Declining membership  Political agendas   Unrealistic expectations Disconnect between union leaders and employee needs  Short-term oriented  Disregard for economic impact

THE SOUTH AFRICAN SCENARIO

  ECONOMIC CHALLENGES  High unemployment Skills development Uncompetitiveness & low productivity  Collective bargaining in a state of crisis

STEPS FOR HEALTHIER OUTCOMES – MUST DO

    Acknowledge the “bigger picture” Acknowledge the differences between business and labour Thoughtful leadership: decisions for long-term solutions Away with adversarial and positional bargaining

WHERE TO START?

WHAT STEPS SHOULD BE TAKEN?

 Question the effectiveness of NEDLAC WHY NEDLAC?

 Forum for government, organised business (BUSA) and organised labour (COSATU) to interact – solution driven

NEDLAC

 South African outlook vs the sectoral bargaining outlook  The involvement of top leadership (business & labour) with government

A CALL TO REFOCUS

The NEDLAC agenda towards a healthier labour relations outcome

A MATTER OF PRIORITIES

EXAMPLE (Simplistic view) What is more important?

 Strikes / violence / intimidation / expensive conditions of employment & wages  OR Incentives / initiatives to create jobs / grow the economy

PRIORITIES

  The starting point remains NEDLAC and effective government intervention  “Meeting of minds” for effective decisions Longer-term approach Building of trust  Pro-active approach

NOT WHAT FOLLOWED MARIKANA! (2012)

IN SUMMARY

       Labour relations wellness – A MUST Less regulation & more free market approach – A MUST Labour stability – A MUST Business development and growth – A MUST Less unemployment, more job creation – A MUST Effective government intervention – A MUST BUSA / COSATU leadership – A MUST

IN SUMMARY

DO OR DIE?

   CHANGE INEVITABLE!

INDABA – 4 November 2014 SA Deputy President The real first step?

Time will tell…

THANK YOU