Transcript Presentation Scope

Balancing Job Creation
and Decent Work In The
Aftermath of the Global
Economic Crisis
Urmilla Patel
2010 CCMA COMMISSIONERS INDABA
“Against all Odds”
Ritz Hotel
2 – 4 December 2010
Presentation Scope
 The ILO Decent Work Country Programme (DWCP) 2010-2014
 Defining the concept of decent work
 The economy and labour market prior to and in the aftermath of the
global economic crisis
 The impact of unemployment on decent work
 The contribution of the social partners
 Is it possible to create sufficient employment which incorporates
decent work principles in other words, to balance unemployment with
decent work?
 Conclusion
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THE ILO DECENT WORK COUNTRY
PROGRAMME (DWCP) (2010-2014)
 In order to support national initiatives to develop and
entrench decent work programmes in their respective
countries, the ILO together with the social partners and
through social dialogue developed particular programmes
for relevant member countries like South Africa that will
lend guidance and support from the ILO to their respective
efforts ;
 The process occurred against the background of the
global economic crisis which threatened to worsen South
Africa’s already serious unemployment crisis and the
especially dire circumstances of the poverty - stricken,
illiterate, unskilled, unsophisticated and vulnerable
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Understanding the concept
of Decent Work  “The concept of decent work is based on the
understanding that work is not only a source of income but
more importantly a source of personal dignity, family
stability, peace in community, and economic growth that
expands opportunities for productive jobs and
employment. The goal is not just the creation of jobs, but
the creation of jobs of acceptable quality”
 “the primary goal of the ILO Decent Work Agenda is to
promote opportunities for women and men to obtain
decent and productive working conditions of freedom,
equity, security and human dignity”
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The Four Strategic Pillars of
Decent Work
 The key priorities or 4 pillars that underpin the South Africa
Decent Work Country Programme emanating from a close
partnership and social dialogue are the following:
 -Strengthening fundamental principles and rights at work
(ensuring ratification and implementation of International
Labour Standards ; and improved labour administration for
effective employment services)
 - promoting employment creation (creation of an
environment that promotes job rich growth, sustainable
enterprises, including formalisation of the informal sector
and skills development) ;
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The Four Strategic Pillars of
Decent Work (Contd...)
 - strengthening and broadening coverage of social
protection (through better managed and more equitable
access to social security and health benefits, occupational
safety and health, and improved workplace responses to
the HIV/AIDS epidemic) ; and
 -Social dialogue and Strengthening Tri-partism ( through
the improved capacity of the tripartite – plus social
dialogue institution (and constituent members) , labour
market institutions for effective social dialogue and sound
industrial relations
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Further Priorities Of The
DWCP
 To give effect to the protection of fundamental rights and
freedoms guaranteed to all citizens under the Constitution
of the Republic Of South Africa in Bill of Rights, which
include :
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- protection of the rights to equality;
- the rights to equal treatment and protection against unfair
discrimination;
- rights to human dignity, freedom of expression and
association; and
- rights to fair labour practices and rights of access to
social security including social assistance
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The South African Economy And Labour
Market Prior To and In The Aftermath of
the Global Economic Crisis
Prior To The Economic Crisis....
 South Africa had enjoyed a number of years of healthy
economic growth
 Labour market indicators had showed progressive
improvement in employment levels since 2003 despite
challenges such as severe scarcity of skills and the AIDS
epidemic ;
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The South African Economy And Labour
Market Prior To and In The Aftermath of
the Global Economic Crisis
Prior To The Economic Crisis (Contd.)......
 In 2008 several factors began to impact negatively upon
the economy, which included :
 - power shortages that never had been experienced before and
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which impacted adversely on productivity in major economic
sectors;
- rising interest rates in inflation targeting;
- global increases in oil and food prices during the first 6 months
of the year;
- decreased private consumption; and
- a decline in foreign investment and exports due to the
spreading world financial and economic crisis
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In The Aftermath....
 The negative effect on the South African economy like other world
economies were the following :
 - 1.8 % decline in GDP in the 4th quarter of 2008 ;
 - GDP declined further by 6.4% in the 1st quarter of 2009 ;
 The economy recorded a third consecutive negative growth of -3,1% in
the 2nd quarter of 2009
 - Thus the South African economy technically went into recession for
the first time in 17 years ;
 - Unemployment worsened from 21,9% in the 4th quarter of 2008 to
24,5% in the 4th quarter of 2009
 - Data indicated a cumulative loss of 1million jobs in both the formal
and informal sectors and across all major economic sectors
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In The Aftermath(Contd.).....
 The negative effect on the South African economy like other world
economies were the following :
 - However, despite the job losses, labour market data indicated that
there had been an increase of 89,000 jobs across all economic sectors
in the 3rd and 4th quarters of 2009 indicating the beginning of an
economic recovery
 - Economic growth and job creation opportunities which were expected
to escalate as a result of the 2010 World Cup did not manifest
according to the great expectations harboured as result of the global
economic crisis that had begun in 2008 ;
 - At the same time however, the view has been expressed that the
2010 World Cup had actually softened the full adverse impact of the
economic recession for South Africa
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THE ECONOMY IS IN A BAD WAY CAN WE TURN IT AROUND?
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TOTAL EMPLOYMENT
JANUARY 2008 – JUNE 2010
14,000
13,800
13,600
13,400
13,200
13,000
12,800
12,600
BUSINESS CLOSURES
TOTAL LIQUIDATIONS
4,200
4,000
3,800
3,600
3,400
3,200
3,000
2006
2007
2008
2009
CONSULTATION
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The Impact Of Unemployment On Creating
Decent Work
 High levels of unemployment created serious decent work deficits such
as
 - informal employment( defined as “employment in precarious work
situations with no written contracts and no benefits”)increased
constituting almost 36% of total employment;
 Emergence of atypical employment relations such as casual labour,
part-time employment, temporary and seasonal work which have the
effect of making workers more vulnerable and exploited despite the
jobs created ;
 Labour Broking whilst having created a number employment
opportunities ( an estimated 500,000 to 950,000 workers are placed
daily through labour brokers), has the effect of depriving workers of
their rights by bypassing labour legislation and regulation
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The Response Of The Social
Partners
 Social dialogue has been South Africa’s primary response
to the global economic and financial crisis.
 A Joint Presidential Working Group consisting of social
partner representatives from Government Business and
Labour developed a National Response Framework (NRF)
to the Global Economic Crisis which was adopted in
February 2009
 The NRF is integrated into Government’s medium to longterm development programme that is geared towards
addressing poverty, unemployment and broadening
economic participation
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The Response Of The Social
Partners (Contd.)......
 Broad principles aimed at the following govern the NRF :
 - safeguarding the welfare of the vulnerable and poor;
 - growing the economy and creating decent jobs by
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increased state investment in in economic and public
infrastructure ;
- introducing effective industrial and sector strategies ;
- commitment to skills development ; and
- transforming and integrating the informal sector into the
formal economy ; including
- ensuring commitment to macro-economic policies that
support decent work and sustainable growth
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Furthermore....
 Fiscal and Monetary policy and Industrial and Trade policy
measures form important aspects of the national response
aimed at contributing towards reducing poverty, and
enhancing employment outcomes ;
 Consideration is also given to environmental issues
relating to global warming and national efforts to promote
green technology and industries and are thus included in
the national response to promoting the creation of green
jobs
 Conclusion : that the social partners in drawing up the NRF
have displayed firm commitment to promoting employment
creation that holistically supports all pillars of decent work.
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Government’s Response
 Public Infrastructure Investment Programme : a primary part of the
of the national response to the economic downturn with
approximately R846 billion being allocated to job creation and
mitigate the huge job losses caused by the economic crisis.
 Expanded Public Works Programme(EPWP) : along with the ILO
provides technical and policy advisory support to create further jobs
focusing especially on the youth, women, and other vulnerable
groups
 Phase 1 of the EPWP (2004-2009) created an estimated 491311
work opportunities ; however, these were largely short-term and
lowly paid and lacking in social benefits such as retirement
 Phase 2 of the EPWP is targeted at creating a total of 2 million
sustainable jobs and enterprises for the poor and unemployed
based on decent work principles.
Government’s Response
(Contd...
 A special National Jobs Initiative and Training Lay –Off
Scheme have been launched as part of the national effort to
lessen job losses and increase employment resulting from the
economic crisis;
 Government has pledged R10 billion over three years
towards the job-saving initiative ; The Training Lay-Off
Scheme aims at avoiding workers who would be retrenched
by allowing them to agree to a suspension of employment
whilst the workers go on a training programme ;
 Institutions like the CCMA, Productivity SA, The DOL –
programmes and policies developed to facilitate job saving ;
 SA committed to the global Jobs Pact within the NRF and
through ILO support and social partner support
Labour’s View....
 Organised labour is very clear in its message that job creation must
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incorporate principles of decent work and this has largely been the
reason for the recent call from labour for the banning of labour brokers.
Eradication of poverty and improved services in the areas of health,
education, rural development and land reform and crime, safety and
corruption
Labour promotes a new growth path based on:
- GDP growth (pre-employment growth ) of 7%
Human Resource Development
Industrial Development Strategy
Monetary Policy( interest rate cuts)
Fiscal Policy
Investment (public and private) infrastructure
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The Response From
Business
 Commitment from Business to create jobs and ensure holistic respect for
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decent work is displayed in the support and co-operation with the NRF and
through various other measures and institutions such as Business Unity South
Africa, The National Business Initiative (NBI), Business Against Crime
amongst others
The NBI sees as its vision for corporate South Africa a sustainable future with :
-People :South Africa as a thriving society
-Planet: Ecosystem integrity is respected
-Prosperity :market economy to benefit all
And as its mission :
“To inspire and mobilise business leadership for a sustainable future”
And a catalytic approach expressed in the words of Warren Buffet’s Noah
principle as follows:
“Predicting rain doesn’t count; building arks does”
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MEMBERS OF THE NBI
MEMBERS OF THE NBI
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The Future?
 There are mixed views as to what the future holds :
 There are strong signs that the economy is firmly on the
road to recovery ;
 However , job losses continue and some of the jobs lost
are not expected to be soon regained eg. in the mining
sector where there has been long–term employment loss;
 Statistics SA in its quarterly survey has indicated that 16
000 jobs have been lost in the mining sector ; and that
 Overall employment has decreased by 86 000 between
the 2nd and 3rd quarter with 45 000 jobs lost in the informal
sector and 14 000 jobs lost in the formal sector ;
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The Future? (Contd)
 Again however, according to the latest Adcorp employment
index, following a steep decline in September, employment
in South Africa grew by an annualised 2.83% in October
with the number of permanent workers increasing by
1.32% and temporary workers by 6.47% ;
 The above figures showing higher job losses in the
informal sector and increased employment of temporary
workers reflect a continuing inclination to decent work
deficits;
 The Adcorp survey also predicts bad news for employment
in the next ten years indicating an increase in
unemployment from the current 6.2million to 16.8million,
including discouraged work seekers
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Encouraging Words From
Productivity South Africa
 “While South Africa and sub-Saharan Africa
bounces back from the growth slowdown, risks
remained, reported the IMF and thus in the difficult
circumstances that we face, we can utilize our
strengths, the financial regulatory framework, and
the resourcefulness of our people and institutions,
to develop a response to the crisis and to commit
to work together in addressing its impact on South
Africa”
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Finally The Question Is....??
 Can a balance be created between employment and
decent work ?
 My view is that this presentation has shown that overall
there are very positive indications that the unemployment
crisis can be alleviated and balanced with decent work
principles through :
 - ongoing social dialogue and firm commitment amongst
the social partners towards creating decent employment ;
 - that the funds set aside for job creation and the
programmes (mentioned above) established by
government are effectively translated into action and
actively monitored ;
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Finally The Question Is....?
(Contd...)
 - widespread and constant public conscientizing of the
concept and principles of decent work and its fundamental
importance in accordance with the Bill of Rights and
ratification of ILO conventions by South Africa as a
member state of the ILO, through print and electronic
media, public campaigns, conferences and seminars;
 Government enacting legislation that entrenches the
principles of decent work in all forms or sectors of
employment and all workplaces and further improved
efforts on the part of the social partners
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
Thank You!
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References:

ILO Decent Work Country Programme 2010-2014 Paper
 Business Day :
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;
;
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KZN 2010 Annual Labour Law Seminar (“Lending A Helping Hand In Troubled Times”)
Papers – 31st Aug 2010:
The Effect Of the 2010 World Cup On Employment Trends &Collective Bargaining: Afzul
Soobedar, NSC-CCMA)
An Example Of Corporate South Africa’s Contribution To Employment Creation : Kerryn
Haselau, NBI
CCMA Annual Labour Law Seminar Presentation : Mudzunga Mashamba, Productivity SA
The Unemployment Challenge Should Be Dealt With : Dennis George, FEDUSA
Labour Law And The Unemployment Crisis : Labour Lawyer, Shanta Reddy
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