PRESENTATION ON LABOUR LEGISLATION 11-12 AUGUST 2009

1. PRESENTATION ONLABOUR LEGISLATION 11-12 AUGUST 2009

2. Labour Legislation 1. Legislation • To give effect to and regulate the right to fair labour practices conferred by section 23(1) of the Constitution by • i)    i) establishing and enforcing basic conditions of employment and • ii)  regulating the variation of basic conditions of employment; • b. To give effect to obligations incurred as a member state of the International Labour Organisation. Basic Conditions of Employment Act, 75 of 1997 Purpose: To advance economic development and social justice by fulfilling the primary objects of this Act, which are:

3. Labour Legislation 2. Legislation (continued) Employment Equity Act, 55 of 1998 Purpose: To achieve equity in the workplace, by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce.

4. Labour Legislation 3. Legislation (continued) Labour Relations Act, 1995 Purpose: To advance economic development, social justice, labour peace and the democratisation of the workplace by fulfilling the primary objects of this Act, which are: To give effect and regulate the fundamental rights conferred by section 27 of the Constitution, To give effect to obligations incurred by the Republic as a member state of the International Labour Organisation

5. Labour Legislation 4. Legislation (continued) Labour Relations Act, 1995 (continued) To provide a framework within which employees and their trade unions, employers and employers’ organisations can collectively bargain to determine matters of mutual interest and formulate industrial policy, To promote: Orderly collective bargaining (also at sectoral level), Employee participation in decision-making in the workplace and Effective resolution of labour disputes

6. Labour Legislation Labour Market Review The Department will review several pieces of legislation to align and ensure that they respond to the challenges posed by the labour market.The Labour Market Review will look at the following legislations: • Basic Conditions Employment Act, and Labour Relations Act, • Employment Equity Act, • Compensation for Occupational Injuries and Diseases Act, • Unemployment Insurance Act, • Skills Development Act. • This labour market review forms part of the Minister’s five year plan.

7. Labour Legislation LRA & BCEA South Africa has seen a considerable growth of temporary employment services or labour brokers. Labour brokers undermine provisions of the law dealing with: • Minimum wages and collective agreements, • Health and Safety provisions, • Right of workers to freedom of association; and • Job security.

8. Labour Legislation To address these challenges the legislative amendments will consider: • Addressing the problem of labour broking and to prohibit abusive practices(S23 of the Constitution provides that “Every person shall have the right to fair labour practices”; • Shifting the responsibility back to the main employer. • Possible amendments will include definitions of ‘Employer” and ‘workplace”;discrimination and organisational rights.

9. Labour Legislation Employment Equity Act The amendments to this Act is aimed at strengthening the enforcement and compliance provisions. The challenges are: • Non-compliance by employers is too high; and • Even if an employer has not complied with the requirements of the Act for many years, Labour inspectors are forced to secure a written undertaking, followed by a Compliance Order before referring it to the Labour Court. The same applies to the DG Review when reviewing substantive compliance.

10. Labour Legislation Compensation for Occupational Injuries and Diseases Act Legislative amendments will deal with: • Revenue collection model: Amendments will address corruption; audit challenges; and discourage under-reporting by employers, • Early return to work: To focus the approach to the employee and not the medical practitioner, • Integrated approach to rehabilitation to work: This will ensure that all stakeholders responsible for the treatment of the patient work together including skills development.

11. Labour Legislation Unemployment Insurance Act Legislative amendments will address the following: • Inclusion of Public Service Workers and their Employer, • Increase credit days from 238 to 360, • Delete section 14a to include recipients of benefits from COIDA and other Unemployment schemes, • Inclusion of Appeals Bodies in determining just/good cause for late applications, • Increase Income Replacement Rate from 38-60% to 45-65%, • Benefit Schedule should be taken out of the Act into regulations, • Monthly Declarations by employers.

12. Labour Legislation Skills Development Act Legislative amendments will deal with: • Employment Services legislation, • Establishment of the QCTO, • Manpower Training Act Section 28 and 13 Provisions, • Productivity SA establishment.

13. Labour Legislation Thank you.