The social compact initiatives mentioned by President Cyril Ramaphosa during his state of the nation (Sona) address last week will be critical for job creation, employment & labour minister Thulas Nxesi said in parliament on Tuesday.
He was speaking during the Sona debate, which is to continue on Wednesday, with Ramaphosa replying on Thursday.
In his address Ramaphosa said while no success has been achieved with forging a comprehensive social compact, a number have been concluded in specific areas. Social partners have also agreed to work on a framework to enable joint action in key areas such as energy, transport and logistics, employment creation and skills development, investment and localisation, social protection, as well as crime and corruption.
Nxesi said “there is a broad agreement from all the social partners on the eight priority interventions that the president mentioned. Those areas are critical for job creation. We anticipate that five or more economic sector compacts will also come out of this process over and above the other areas where there is an agreement, as happened with the Eskom social compact,” Nxesi said.
He noted that consultations are under way with other government departments on a national employment policy that will be finalised this year, after which it will be submitted to the cabinet for approval.
An employment creation co-ordinating committee will be established, chaired by the deputy president, which will include economic, infrastructure and employment ministers, organised business, labour and community organisations.
The committee will be tasked with ensuring intergovernmental alignment guided by the employment policy, a relevant skills development framework, the extension of social protection to workers and support for work seekers. It will also focus on an ecosystem that promotes sustainable enterprise development, self-employment and positive regulation for the informal sector.
The committee will also look at a labour migration policy and a legislative framework that manages migration to and from SA to benefit its economic needs.
To deal with regulatory burden on small, medium-sized and micro enterprises (SMMEs) the department has tabled a proposed amendment to labour laws with the National Economic Development and Labour Council (Nedlac). A proposed amendment to the Employment Equity Act will be introduced to enhance the prohibition of unfair discrimination while improving the competitiveness of small businesses employing fewer than 49 employees.
Nxesi said the department’s inspectorate has referred 5,100 cases for prosecution by the end of the third quarter. The inspectorate has recovered R150m owed to vulnerable and migrant workers who were being exploited, especially on farms and in the retail sector.
The Occupational Health and Safety Act will be amended to increase fines and penalties to deter “unscrupulous” employers.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.