Business Response to the 2010 SONA

1. Business Response to the 2010 SONA A BUSA presentation to the Portfolio Committee on Labour 9 November 2010

2. Content 1 Introduction to BUSA 2 BUSA Anti-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work Conclusion 5

3. 1 Introduction to BUSA 2 BUSA Anti-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work 5 Conclusion

4. BUSA is… • …a confederation of chambers of commerce and industry, professional associations, corporate associations and unisectoral organisations; • …the principal representative of business in South Africa, representing the views of its members in a number of national structures and bodies, both statutory and non-statutory, the organisation also represents business’ interests in the National Economic Development and Labour Council (NEDLAC).

5. BUSA represents SA Business… • …on macro-economic and high-level issues that affect business at both national and international levels. We ensure that business plays a constructive role in the country’s economic growth, development and transformation to create an environment in which businesses of all sizes, and in all sectors, can thrive, expand and be competitive. • …at the International Organisation of Employers (IOE), the Pan-African Employers’ Confederation (PEC) and the Southern African Development Community (SADC) Employers’ Group, as well as being the official representative organisation of business at the International Labour Organisation (ILO), African Union (AU) Social Affairs Commission and World Trade Organisation (WTO).

6. 1 Introduction to BUSA 2 BUSA Anti-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work 5 Conclusion

7. Anti-Poverty Response: BUSA’s view • Much progress has been made since ‘94 • Goals of halving unemployment and eradicating poverty must be kept in sight • Strong focus on achieving higher economic growth needed in order to create economic opportunities for poor households in the form of job creation and empowerment.

8. Anti-Poverty: BUSA’s 9 Pillars ECONOMIC GROWTH key, but should be more inclusive, especially re opportunities for youth, women and rural communities. ENHANCED COMPETITION in our economy necessary for improved efficiency and growth. RIA MECHANISM should be institutionalised to remove impediments to growth, jobs and new enterprises BBBEE opportunities must be leveraged to grow SMME’s and reduce poverty through targeted broad based ownership, corporate social responsibility and employment equity interventions. SMME GROWTH depends on pro-active support and intervention. BUSA will develop a coherent framework in partnership with our constituency from the SMME desk including NAFCOC, FABCOS & SACCI

9. Anti-Poverty: BUSA’s 9 Pillars (contd) SKILLS DEVELOPMENT a key area where business contributes (over and above its contributions to the SETA’s) through artisan and graduate training, an enhanced role in governance and curricula development institutions of technical training, and through placement and internship programs. LOCAL EVEL SERVICE DELIVERY to improve delivery to the poor is an area where business wants to contribute more, especially re provision of services, capacity building and financial management. PUBLIC-PRIVATE-PARTNERSHIPS are already helping to improve access to basic services and opportunities for peripheral communities, especially in the health sector, but are also key in ensuring support for catalytic investments into infrastructure that will benefit SMMEs, communities, local business, BEE companies, etc. STRATEGIC INTERVENTIONS in which BUSA will be involved to promote poverty reduction over the coming months will include programmes on rural development and food security, SMME support and enhancing projects in the financial services sector.

10. 1 Introduction to BUSA 2 BUSA Ant-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work 5 Conclusion

11. Towards Job Rich Growth • BUSA is in the process of doing research that will underpin a report on how to achieve higher levels of job rich growth in the South African economy. • Preliminary research have suggested that we stand before nine key choices

12. Job Rich Growth: Choices 1 - 4 Through social dialogue, develop and champion a South Africa 2025 Vision and Growth Plan that has deep participation from all facets of civil society and full participation of all social partners. Move towards a delivery focussed state Radically re-engineer the education system to a level that is competitive with upper middle income countries Close the skills gap by 50% and lift the skills constraint on growth Incentivise and support the 10% of industries and business opportunities that will create 90% of new jobs, in partnership with business

13. Job Rich Growth: Choices 5 - 9 Aggressively develop the competitiveness of labour intensive export orientated manufacturing and services industries with skills, innovation, technology, infrastructure, business environment improvements and business models that are positioned for growing African markets Reduce input costs to competitive levels Use bold measures to reach 50% of the unemployed Increase the percentage of school leaving youth accessing to the job market to 75%

14. 1 Introduction to BUSA 2 BUSA Ant-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work 5 Conclusion

15. BUSA and Decent Work • The decent work country programme for SA is a process that is currently been dealt with at NEDLAC. The ILO is leading on this process. • NEDLAC has established a steering Committee of all social partners (Business, Govt, Labour and Community) and the ILO. It is through this steering committee that BUSA is involved. There is also a technical committee ( two a side and the ILO) • At NEDLAC, we have signed off on the base document and the dwcp matrix. • The Minister of Labour launched the decent work country programme at NEDLAC on 29 September 2010. A memorandum of understanding was signed by all social partners. • The SA DWCP rests on four pillars and identifies nine outcomes

16. SA DWCP 4 Pillars • The decent work country programme for SA has four pillars: • strengthen fundamental principles and rights at work; • promote employment creation; • strengthen and broaden social protection coverage • strengthen tripartism between labour, government and business and to deepen social dialogue

17. SA DWCP: Outcomes 1 - 4 Outcome 1: Up-to-date International Labour Standards are ratified, complied with and reported on Outcome 2: Labour administrations apply up-to-date labour legislation and provide effective services. Outcome 3: More women and men, especially youth and persons with disabilities, have access to productive and decent employment through inclusive job rich growth Outcome 4: Sustainable and competitive enterprises (including cooperatives) create productive and decent jobs, especially among women, youth and persons with disabilities

18. SA DWCP: Outcomes 5 - 9 • Outcome 5: Skills development increases the employability of workers and the inclusiveness of growth • Outcome 6: More people have access to improved and more gender equitable social security and health benefits • Outcome 7: Workers and enterprises benefit from improved safety and healthy conditions of work • Outcome 8: The World of Work responds effectively to the HIV/AIDS epidemic • Outcome 9: Strengthened labour market institutions and capacitated social partners (tripartite-plus) contribute to effective social dialogue and sound industrial relations

19. DWCP: Business Priority Areas • Labour inspection systems in the public and private sector strengthened • Capacity of Government and social partners to promote employment equity (including gender equality ) at the workplace is strengthened • Macro – economic policy strengthened to support employment and decent work outcomes • Strengthened national capacity to analyze and access data on decent work following locally relevant indicators • Support for a coherent and enabling policy environment for the promotion of sustainable enterprises • Improved enterprise level productivity and competitiveness through relevant skills training

20. DWCP: Business Priority Areas • Support for a new and more inclusive mandatory social security system • Policy and research support for the establishment of a National Health insurance • Capacity of trade union and employer organisations to develop, secure financing and to implement HIV / AIDS workplace policies and programmes is strengthened • Capacity of social partners to engage more effectively in social dialogue strengthened.

21. DWCP: Business Priority Areas • Support for a new and more inclusive mandatory social security system • Policy and research support for the establishment of a National Health insurance • Capacity of trade union and employer organisations to develop, secure financing and to implement HIV / AIDS workplace policies and programmes is strengthened • Capacity of social partners to engage more effectively in social dialogue strengthened.

22. 1 Introduction to BUSA 2 BUSA Ant-Poverty Response Towards job rich growth 3 4 BUSA and Decent Work 5 Conclusion

23. CONLUSION • Deepening dialogue in building national consensus on job creation and poverty alleviation will remain key • The higher the job rich growth target, the more important improved policy coherence and integrated working between government departments become • Importance of lowering indirect contributors to employee costs, such as lack of universal access to basic services and affordable transport and housing remains key to employment growth • So does education and skills development • BUSA will continue in its research and advocacy efforts to support government in its quest to deal with the above.

24. THANK YOU!