These neo liberals are advocating for a review of Labour market laws including 
LRA, emasculating industrial unrests by workers and to empower Labour Courts to 
have a locus standi on calling off legal strikes if employers makes that 
application.

This is bourgeois nonsense couch in good english whose facade exhibit, at once, 
rationality of time and human face. But is an advocation of restructuring 
bargaining power relations in the workplace in favour of employers and it must 
be opposed.
Sent from my BlackBerry® wireless device

-----Original Message-----
From: Dominic Tweedie <[email protected]>
Sender: [email protected]
Date: Tue, 15 Nov 2011 07:30:12 
To: <[email protected]>
Reply-To: [email protected]
Subject: [YCLSA Discussion] Not only wages but also workplace culture and
 productivity must shift; and SA public sector bargaining is utterly 
dysfunctional


Business Day


*Pragmatic reform of labour legislation needed urgently *


*Halton Cheadle, Peter le Roux and Clive Thompson, Business Day, 
Johannesburg, 15 November 2011*

THE performance of SA's labour market and one of its key props, labour 
law, are the subject of criticism and for the same reason: dismal 
outcomes. The attacks come from left and right, so the prescriptions for 
reform run in opposite directions.

Earlier this month, Congress of South African Trade Unions general 
secretary Zwelinzima Vavi reported to French President Nicolas Sarkozy 
that SA is the country with the highest rate of unemployment among 
middle-income countries and with the highest rate of inequality in the 
world. He could have added that it is blighted by possibly the highest 
strike rate as well.

For more than 20 years, November has been a time when the three of us 
(and some others) have collected our thoughts on the state of labour law 
and offered a synopsis to audiences around the country. What has changed 
in that time is that the political order and its ensuing legislation 
have become legitimate. What has not changed is a lack of consensus on 
the formula for productive workplaces.

Law is a distinctly secondary force in the making of social outcomes but 
it still has an important effect. Given the mixed and even disappointing 
results of the 1995 Labour Relations Act (LRA), we have to keep 
reconsidering. We have some thoughts, some of which are lofty and others 
pragmatic.

The 1995 LRA was designed to promote fairness, rationality and a higher 
level of co-operation across the labour market, from industry forums 
down to individual workplaces. It gives expression to the relevant 
sections of the bill of rights and it meets international labour 
standards. There can be no doubt that back in the 1990s, the new 
legislation helped to stabilise workplace relations: industrial conflict 
in the second half of that decade was dramatically down on the first. 
The National Economic Development and Labour Council played the role of 
patrician, providing policy leadership, all-party cohesion and not a few 
guides. The Commission for Conciliation, Mediation and Arbitration 
(CCMA) and the Labour Court did then and continue today to do sterling 
work in guaranteeing fairness and rationality, and damp ing down what 
would otherwise be still higher levels of discord.

Given the state of labour relations and economic performance today, is 
it the design of the law that stands exposed? Are its provisions too 
rigid, hampering market responsiveness to global and domestic needs? Or 
is its orbit too narrow, failing to reach out and protect those in the 
informal and atypical employment sectors? Our sense is that it is not 
the structure of the law that is wanting (accepting that no law can do 
everything anyway). Rather, the stumbling block takes the shape of a 
lack of social receptiveness to a key part of the LRA's scheme, made 
worse by the inability of national macroeconomic policies to deliver 
sustainable, employment- boosting growth.

While the institution of collective bargaining was robustly asserted in 
the 1995 LRA, provision was also made for a second channel of industrial 
relations. Parties were invited to form workplace forums, platforms to 
foster trust and workplace productivity. Collective bargaining and the 
dispute resolution structures of the LRA cannot carry the weight of 
labour dynamics in this unequal society in the absence of the embrace at 
least of the philosophy underlying the second channel.

This last observation is linked to another. For so long as employers and 
unions see the workplace as simply a site of struggle, South African 
business will never be able to prosper domestically or compete 
internationally. Whether one is dealing with the public or private 
sector, more efficient ways of organising work and delivering goods and 
services have to be a priority. If the debate between labour and capital 
is confined to the distributive element of collective bargaining, no 
real progress can be made.

A new social compact is needed for this to be achieved. This cannot be 
limited to the top-tier actors; it must reach down to the workplace 
leadership as well. It should not be so much a compact in relation to 
wages but on workplace culture, productivity and reform.

But, away from that grander agenda, several areas of the law deserve a 
rethink as well. Let us deal with an area of outright pathology first. 
SA cannot afford the level of conflict associated with failed collective 
bargaining in the public sector. The consequences for society are not 
only expensive, they are fatal. Nor do workers enjoy any net financial 
gain; they end up worse off. An end to volatility in this sector is not 
in sight. There is, however, a voluntary remedy available until saner 
perspectives prevail. The parties should consider agreeing to submit all 
economic disputes to arbitration for a respectable period, say three 
years. The record out of Canada shows that arbitrated outcomes in the 
public sector track negotiated outcomes very closely, but without the 
costs of industrial action. While the exercise of power does have an 
important role to play in underpinning the bargaining process, for now, 
in SA, that role has become utterly dysfunctional.

Ireland also offers a suggestion on how better to regulate potential 
conflict in public sector bargaining. The parties should be required to 
enter into comprehensive agreements regulating all contingencies in the 
event of industrial action. This should go much further than a mere set 
of picketing rules, covering all the possible consequences of 
disruption. It should leave space for the legitimate exercise of power 
while clamping down on its illegitimate expressions.

Violence in private sector labour relations has also reached new 
post-1994 heights. Here, too, there is a need to introduce procedural 
obligations that go beyond pro-forma picketing rules. And a case can be 
made for the right to industrial action to be open to suspension by the 
Labour Court if that action is accompanied by egregious conduct.

A second area for pragmatic reform relates to unfair dismissal. Given a 
history of arbitrary management decision-making, it was appropriate for 
the then Industrial Court to introduce stringent rules in relation to 
pre-dismissal hearings in the 1980s. That time has now passed and the 
cottage industry associated with predismissal inquiries needs to be 
closed down. The CCMA's imminent Guidelines on Misconduct Arbitrations 
will assist, but perhaps the adoption of US arbitrators' approach of 
dispensing with the requirement of all forms of predismissal hearing (at 
least as a legal requirement) is what is needed.

Third, SA is not dealing merely with a dual labour market but one that 
is sliced and diced into multiple segments. Collective bargaining 
processes and outcomes need to reflect that diversity. The recent 
agreement on a tiered wage structure in the clothing sector represents 
pioneering and necessary flexibility in the approach to bargaining.

Fourth, the abuse of contract labour does not justify outright 
prohibition. The abuses of contract labour can be prevented by 
appropriate regulation.

Even disgruntled players need to recognise that contract labour is now 
ubiquitous and is sometimes a useful feature of labour markets across 
the world.

However, all of these prescriptions --- and other amendments to 
legislation that might soon be in the offing --- will count for very 
little if a broad consensus on the need to transform the workplace 
culture is not actively pursued and achieved.

      * Cheadle was the principal architect of the 1995 LRA. Le Roux and
        Thompson are lawyers who have been engaged in the practice and
        reform of labour law since the 1970s.


*From: http://www.businessday.co.za/articles/Content.aspx?id=158666*




**

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