Business Day
*Zuma leads bid for 'social pact' to save SA's frayed image amid mine strikes***
*Sam Mkokeli and Carol Paton, Business Day, Johannesburg, 18 October 2012*PRESIDENT Jacob Zuma on Wednesday announced measures aimed at improving South Africa's image, preventing strikes from spreading across the economy and at building social stability.
The strikes have led to two successive downgrades by ratings agencies, both citing concerns over South Africa's long-term stability.
In what is called a social pact, after a negotiating process involving several Cabinet ministers and business and labour organisations, it was agreed on Wednesday --- as an immediate measure --- that no further wage agreements would be reopened for renegotiation.
The government also promised a new policing strategy aimed at showing that "the state is in control and visibly in charge", which it hoped would contain violence and intimidation.
Speaking to journalists after the meeting, Mr Zuma said having considered domestic and international economic factors, the parties "emerged with one voice".
"The parties agree to take steps to improve public and investor confidence in the economy and in social stability, using their respective resources and capacities to build a partnership for development," he said.
He called on workers involved in illegal strikes to return to work, so that production in the mining industry could return to normal.
The pact consists of a range of measures --- some new and some already existing --- grouped into three areas: measures to promote stability in the labour market; law and order measures; and a plan to address socioeconomic problems, particularly in mining towns.
Economic Development Minister Ebrahim Patel, who led the negotiations, said the hard line being taken on unprocedural wage negotiations was essential to prevent strikes in the mining sector from spreading to the rest of the economy.
While the government acknowledged that certain negotiation processes with workers were already under way and had to be resolved, all parties to the pact agreed that a line had been drawn that no one would cross.
"We are sitting with an immediate crisis and we are putting out a marker about the approach to be taken.
"The message is: don't let this become a practice across the economy," he said.
A key aim of the pact is to prevent unions from "buckling under pressure" to join the wave of unrealistic wage demands, Mr Patel said.
A task force will be set up to measure the progress emanating from this social dialogue, Mr Zuma said. The parties would identify common priority areas and specific roles for each other.
Particular attention will be paid to the development of mining towns, and other ways to create new jobs.
The agreement says a "crack team" will be deployed to municipalities in mining areas to "plan for the full housing and municipal infrastructure needs in specific areas and address institutional capacity". Rustenburg, Lephalale, Emalahleni, West Rand, Welkom, Klerksdorp and Carletonville are first on the list.
The parties also agreed to look for ways to speed up job creation through public infrastructure expenditure.
Wednesday's session was a continuation of a meeting that started last week, at which leaders agreed to freeze salary rises and bonuses of bosses for a year.
The organisations represented included the Congress of South African Trade Unions, the Federation of Unions of South Africa, National Council of Trade Unions and Business Unity South Africa.
The language of the new plan walks a fine line between cracking the whip on illegal and violent strikes, but also gently nudging workers back to work.
Mr Zuma said all the players wanted to send a message that all protests and industrial action must be conducted within the framework of the law.
The plan devised on Wednesday is seeking to revive some of the tools used to mitigate the effect of the 2008 recession, such as schemes to keep struggling companies afloat and avert retrenchments.
The government will extend the reach of the Training Layoff Fund, while R2bn will be availed to workers at risk.
The government has undertaken to broaden its Expanded Public Works Programmes, from 502,000 full-time equivalent jobs to 685,000 full-time equivalent jobs in the financial year that starts in April next year.
It also committed to speed up infrastructure projects it already started, as part of the R844.5bn three-year public sector capital plan. Unspent funds would be allocated to programmes that are "shovel-ready".
*From: http://www.bdlive.co.za/national/2012/10/18/zuma-leads-bid-for-social-pact-to-save-sas-frayed-image-amid-mine-strikes*
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