STABILITY AN INSIGHT TO ISSUES UNDER DISCUSSION AT NEDLAC ON - PowerPoint PPT Presentation

LABOUR RELATIONS STABILITY AN INSIGHT TO ISSUES UNDER DISCUSSION AT NEDLAC ON LABOUR RELATIONS STABILITY, WAGE INEQUALITY AND THE EMPLOYMENT TAX INCENTIVE Tanya Cohen

LABOUR RELATIONS INDABA  To promote employment and strengthen dialogue  November 2014 Declaration identified key challenges with the labour relations environment  Violent and protracted strikes and stability  Wage inequality and low wages  Weak collective bargaining  Inadequate social protection and  Unemployment and vulnerability in employment  NEDLAC process initiated with Committee of Principals and two task teams with business representation by BUSA and BBC members

WAGE INEQUALITY  National Minimum Wage in the context of poverty, inequality and unemployment  Various positions:  Constituency composition considerations  Objectives of a national minimum wage  Research and modelling  ILO guidance  Consideration on the definition, exclusions, the body and compliance  Without prejudice discussions led to establishment of a National Minimum Wage Review Panel  Business position in summary

LABOUR RELATIONS STABILITY 1. Code of Good Practice on Collective Bargaining and Industrial Action  Purpose  Collective Bargaining, Good Faith, Negotiator Capacity, Preparation for Negotiations, Disclosure of Information  Workplace Participation  Industrial Action, Constitutional Rights, Ballots, Peace Obligations and Role of Police and Private Security  Picketing 2. Legal changes expedited hearings, S188, conciliation process extensions,  picketing 3. Protocol with expedited criminal processes 4. Compulsory Advisory Arbitration 5. Strengthening collective bargaining 6. Balloting Provisions

EMPLOYMENT TAX INCENTIVE 1. Incentive applies between January 2014 – December 2016 for employees earning between R2000 – R6000, 18 – 29 year olds in first time employment. The incentive is paid through a reimbursement to employers of PAYE 2. In excess of 680 000 jobs supported in 2014/15, at a cost of R2.6 bn (R6.6 overall to date) 3. Currently under review, demonstrating: Creating of new jobs  Retaining and preventing jobs loss  Good retention rates after the incentive finishes  No displacement of older workers  Incentivises compliance  4. Effective, targeted intervention 5. Rigorous analysis of the scheme 6. Social partner commitment to employment