AMERICAN CHAMBER OF COMMERCE IN SOUTH AFRICA PRESENTATION TO MEMBERS OF THE AMCHAMBER LABOUR FORUM JULY 2014 1 CCMA Revolutionizing Workplace Relations
NAVIGATING THE PRESENTATION 2 CCMA Vision, Mission, Values and Functional Purpose Corporate Governance Delivery Excellence and Challenges The Changing Labour Market 2 CCMA Revolutionizing Workplace Relations
CCMA VISION, MISSION, VALUES AND FUNCTIONAL PURPOSE Members of the Farm Workers’ Committees from the Grahams town and Alexandria area who attended a Best Practice Workshop initiated by the Eastern Cape – Port Elizabeth DM&P Team 3 CCMA Revolutionizing Workplace Relations
VISION MISSION VALUES • The purpose of the CCMA is to • Respect promote social justice and • To be the • Excellence economic premier dispute development in prevention, • Accountability the world of work management and to be the best and dispute • Diversity dispute resolution management and organisation • Integrity, dispute resolution organisation • Transparency, trusted by our social partners 4 4 CCMA Revolutionizing Workplace Relations
MANDATORY STATUTORY FUNCTIONS 5 Conciliate Workplace Arbitrate disputes that remain Disputes; unresolved after conciliation; Consider applications for Facilitate the establishment Compile and publish accreditation and subsidy of workplace forums and information and statistics about from Bargaining Councils and statutory councils; its activities; private agencies; Provide training and advice on the establishment of collective bargaining structures, workplace restructuring, consultation Establish picketing rules processes, termination of employment, employment equity programmes and dispute prevention. CCMA Revolutionizing Workplace Relations
DISCRETIONARY STATUTORY FUNCTIONS 6 Provide training and Advise a party to a dispute Supervise ballots for unions information relating to the about the procedures to and employer organisations; primary objective of the LRA; follow; Offer to resolve a dispute Publish guidelines on any that has not been referred to aspect of the LRA and to the CCMA; make rules CCMA Revolutionizing Workplace Relations
DR PROCESSES - RIGHTS DISPUTES 7 CCMA LABOUR COURT Rights Disputes If unresolved Con-arb Conciliation If unresolved Arbitration Adjudication Award Judgement CCMA Revolutionizing Workplace Relations
DR PROCESSES - INTEREST DISPUTES 8 CCMA Interest Disputes Conciliation If unresolved Strike / Lockout CCMA Revolutionizing Workplace Relations
THE CCMA DOES NOT HAND OUT LICIENCES TO STRIKE 9 The CCMA’s role in the labour market is not to prevent strikes but to ensure that it provides an avenue for parties to continue negotiations to ensure labour market stability and promote industrial peace. The CCMA monitors labour market developments through a labour market monitoring tool that ensures that collective bargaining disputes are tracked to ensure that appropriate offers to assist are extended. The CCMA will also offer assistance in unprotected strikes to firstly assist in ensuring a return to work and ensure parties are kept in process to deal with the issues. CCMA Revolutionizing Workplace Relations
STRIKE STRIKE STRIKE 10 Any party to a dispute about a matter of mutual interest may refer such to the CCMA (S134 of the LRA) The CCMA has 30 days to resolve the dispute or parties may agree to an extension. If the dispute remains unresolved, either party may give 48 hours’ notice of strike or lockout. In terms of S150, the CCMA may offer to resolve a dispute through Conciliation, if resolution of the dispute would be in the public interest: Assistance may be requested by either party or by an offer extended to all parties by the CCMA. S150 offers of assistance may only proceed with both parties consent (in writing). CCMA Revolutionizing Workplace Relations
PICKETING RULES 11 Parties may approach the CCMA to attempt to agree picketing rules (S69 LRA). If no agreement reached the CCMA must establish or set picketing rules. The Code of Good Practice for Picketing established by NEDLAC, must be taken into account when establishing picketing rules. A picket may be held- In any place to which the public has access but outside the premises of an employer; or With the permission of the employer, inside the employer’s premises . The permission may not be unreasonably withheld. CCMA Revolutionizing Workplace Relations
STRIKE BY NUMBERS 12 Average % Relative average The proportion of workers involved in strikes (over total Country workdays lost workdays employment) peaked in 2007 in Mining, at approx 38%. per year lost to SA Total percentage of formal sector workers involved in strikes was only 1.1% in 2003, 6.7% in 2007 and 2.2% in 2011. Brazil 46.40 12.30 In 2007, percentage of working days lost was greatest for Community sector, but only at 1.55%. The Mining sector Russia 2.51 0.67 averaged at about 0.42%. The total percentage number of days lost to strike action, India 8.02 2.13 over total working days per year in 2011, was 0.2%. South Africa ranks 7 th lowest out of 8 similar economies South Africa 3.77 1.00 internationally, in average percentage workdays lost per year. Nigeria 10.94 2.90 Average percentage workdays lost per year in these countries from 1999-2008 is 12.26%, but South Africa is only at 3.77%. United States 9.51 2.52 South Africa’s average strikers’ intensity from 1999 -2008 was 28/1000 workers, lower than Austria, Spain, Israel Turkey 19.77 5.24 and many others. Bhorat: Measuring The Financial Impact Of The CCMA’s Job -Saving Initiatives On The South African Economy 30 May, 2014 CCMA Revolutionizing Workplace Relations
CORPORATE GOVERNANCE Governing Body Chair Daniel Dube Director Nerine Kahn 6 CCMA Revolutionizing Workplace Relations
Parliament Executive Authority Minister of Labour Organized Labour Governing Director Government Audit Committee Body Organized Business Governance, Social and Ethics Committee Essential Services Accreditation & Subsidy Committee Commissioners & Staff Committee Human Resource and Remuneration Committee Finance and Risk Committee 14 CCMA Revolutionizing Workplace Relations
DELIVERY EXCELLENCE AND CHALLENGES Delegates to the CCMA/ILO Decent Work – Contract Cleaning Sector Summit held in Johannesburg CCMA Revolutionizing Workplace Relations
INCREASING ACCESSIBILITY - CCMA SERVICE DELIVERY CENTRES 16 National Stakeholder Leadership Opened two new offices : Vaal and Welkom CCMA Revolutionizing Workplace Relations
17 Collective Bargaining NUM and Northam Platinum Mine NUM and Exarro Coal Platinum Sector – AMCU and Lonmin, Amplats, Implats Verification Exercise Bokoni Platinum Mine Facilitated Task Teams Glass Sector National Bargaining Council for the Road Freight and Logistics Industry Promoting labour market peace and stability Hospitality CCMA Revolutionizing Workplace Relations
CASE DISTRIBUTION BY ISSUE 2013-2014 18 CCMA Revolutionizing Workplace Relations
CASE DISTRIBUTION BY SECTOR 2013-2014 19 CCMA Revolutionizing Workplace Relations
SECTOR WAGE WAGE SIGNIFICANT CONDITIONS OF EMPLOYMENT INCREASE INCREASE AVERAGE MIN MAX CPI + Mining Coal 9% 9 3 year agreement – Year 1- 9% ; Year 2 and Year 3 – CPI + 1 1 Motor Industry – Fuel 9.87% 9% 11.6% Year 1 – 11.6% ; Year 2 & 3 – 9% Retailers / NUMSA 3 year agreement : Year 1 – 10% ; Year 2 & 3 – 8.5% - Once off Motor – Automotive 9% 10% 8.5% additional incentive according to pay scale Mining - Gold 8% 8% 8% Clothing Industry 8.55% 7% 10.1% Urban workers – 7% ; Metro workers – 10.1% 2 year agreement – Grades 1 – 4 at 10% ; Grades 5 – 9 at 8% ; Civil Engineering - BCAWU 9% 8% 10% Night shift allowance – 7.5% Civil Engineering - NUM 12% % 12% 12% 2 year agreement Private Health 6.9% 6.9% 6.9% Medical scheme – R1544 Private Health 7.25% 7.25% 7.25% Local Subsistence and Travel Allowance – R415 per night, Transport (Road Passenger) 9.75% 9.5% 10% Cross Border Subsistence and Travel Allowance – R460.00 per night Transport (Intertoll) 10% 10% 10% Min Wage – R2400 Effective 01 st November 2013 – Group A R200.00, Group B – Sugar Industry 8.5% 8.5% 8.5% R150, Min Wage – R5786.30 Services 7.75% 7.75% 7.75% Travel allowance – R6000 per month Chemical (Glass) 7% 7% 7% Chemical (FMCG) 7.5% 7.5% 7.5% Chemical (Industrial 7.75% 7.75% 7.75% Chemical) Chemical (Pharmaceutical) 7.5% 7.5% 7.5% Mining (Diamonds) 9% 9% 9% Mining (Platinum) 9 8.5% 9.5% 2 year agreement – plus R3000 ex gratia payment Telecommunications 6% 6% 6.8% 3 year agreement, Standby allowance – 6 percent 20 CCMA Revolutionizing Workplace Relations
Collective Bargaining Trends 21 Processes across all Period Total Settlement rate CCMA offices S150 - heard 01 st January 2013 to 31 st Dec 236 2013 S150 - settled 151 01 st January 2013 to 31 st Dec 2013 S150 Settlement Rate Financial year 2013 /2014 82.1% S150 Acceptance Rate Financial year 2013 /2014 Offers made - 237 Accepted 236 (97.5%) Mutual Interest matters Financial year 2013 /2014 3793 (Average of 316 68.6% heard per month EFFICIENCY 2013/14 Conciliation Settlement Rate 75% 53% Arbitration Settlement Rate Mutual Interest Settlement Rate 68.6% Section 150 Settlement Rate 82.1% CCMA Revolutionizing Workplace Relations
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