COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION

1. Current Labour Market Realities COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION Presentation to the ANNUAL LABOUR LAW SEMINAR 30 JUNE 2011

2. LABOUR MARKET REALITIES Imagine a workplace… • You performing the same job as someone else …but • For a Different wage • Different working conditions • Different training benefits • No or Absent management • No or low unionization IS THIS OUR NEW NORM?

3. LABOUR MARKET REALITIES • New reality started creeping in when re entered the global economy. • Not envisaged in the honeymoon period of social dialogue and a belief of shared values (Moral and in the system). • Spirit of LRA was self regulation and strong tripartism, everything could be resolved through dialogue. • We created institutions to embody this - NEDLAC and CCMA

4. LABOUR MARKET REALITIES • Early years social partners sought to comply with the social partnership dream • We saw the benefits, decline in unprocedural strikes, good relations in some workplaces, an outlet for disputes • Excitement in many workplaces as innovation began to occur • Dialogue, partnerships and joint decision making developed in many workplaces

5. LABOUR MARKET REALITIES • As years passed, global economic realities began to hit home • Idealism faded, compliance dwindled, and a culture of circumvention rather than compliance crept in • Economy changed…rise and rise of unemployment, poverty remained but also services sector developed in line with global trends……..Labour market focus changed. • Need for unskilled to need for semi skilled and skilled labour. • Finally move towards different forms of employment relationships..outsourcing or triangles crept in, home work Workplace is now different

6. LABOUR MARKET REALITIES • These changes are significant to the labour market…and the dialogue relationships envisaged • Trend has emerged that managers no longer manage or deal with employees, all outsourced to HR, Labour brokers or consultants • Come running to the CCMA to sort out workplace issues and relationships • The CCMA was there for social justice for vulnerable workers

7. LABOUR MARKET REALITIES • Not the reality..rub shoulders with executives…& workers • CCMA possibly contributed to this in it’s over proceduralism phase • CCMA is now operating as envisioned, and is efficient. • This has lead to its own problem…victim of its success. • Workers, employees bypassing the establishment channels and coming straight to the CCMA • Mandate expanded, job security project

8. LABOUR MARKET REALITIES • Management has out sourced its main function to manage people • Downgraded the HR function, not always key decision making forums • Eroded the idealistic gains of the initial phase • Move to technology, yes, but we still need people • Over emphasis on performance outcomes and management, and less and less on people management. • So we are all busy alienating our employees

9. LABOUR MARKET REALITIES From a Trade Union perspective • New economy hampers capacity to organize • Hard to get new members, new kind of workplaces • Insufficient resources to adequately service members • Inadequate skills, training • Trade Union’s tend to focus on policy to solve workplace issues • Distance between officials and membership • No leadership or direction given as a result Trade unionism as a profession not as noble or as sexy as it was

10. LABOUR MARKET REALITIES Impact on Collective Bargaining vision? • Not strategic • Neglected area by both sides • Employers have outsourced / downgraded HR & IR • Trade Unions revert to using policy and politics to change workers’ lives • Overall in the CCMA we see a loss of skill and capacity to bargain (loss of influence, continuity, resources)

11. LABOUR MARKET REALITIES • Trade Unions just pushing for higher wages? • Both sides need strategic engagement, preparation and understanding of where they are going to • Need to have general education about the political and social economy • Not just in times of crisis

12. LABOUR MARKET REALITIES Where does this leave us? • Workers don’t believe that employers can solve their problems • Plays out where Collective Bargaining disputes are no longer resolved in the Bargaining room • Disempowers everyone in the process – Employer, Worker and Commissioner

13. LABOUR MARKET REALITIES Why do I say this? • Increase / blurring of lines between who is business and who is in politics • Lines are unclear in workers mind between ownership and control of business Who are the leaders of the country and . . . who are the leaders of the company

14. LABOUR MARKET REALITIES Greatest impact is on Collective Bargaining • Change in nature of demands, emphasis on comparison with executive pay, class related demands • More adversarial • Post apartheid labour market has been widened, growing income inequality, some economic growth, increase in real wages ? • Related to conspicuous consumption, emerging tenderprenuers, a growing elite

15. How do we revive the ideal? • Go back to negotiating on the shop floor and take back responsibility for management staff • Recommit to the spirit of the LRA • Build capacity, elevate the importance of HR & IR • Relook at collective agreements and how we are bargaining • Refocus attention on education and training and a real commitment to skills development

16. Revolutionising Workplace Relations