Address by COSATU General Secretary, Zwelinzima Vavi, at the

Input to Launch of Labour Law Amendments

29 July, 2002



Zwelinzima Vavi, General Secretary, COSATU

We are gathered here to celebrate the coming into force of the labour law amendments passed last year. These amendments represent an important extension in the rights and protections for ordinary workers in our country. They include:

·        A limited, but still important, right to strike against retrenchments. This right is really only available in companies with over 50 workers that face substantial job losses. Still, as our members know, it is an important step in ensuring that employers take seriously the need to look at alternatives to destroying jobs. With unemployment currently at around 30 per cent, this amendments is critical for our people.

·        Substantial improvements in the rights of workers who face a transfer. Above all, their wages, bonuses and leave must be guaranteed by the former employer, and transfers may not be used to avoid existing collective agreements.

·        Strengthening of dispute settlement procedures, by upgrading conditions for labour-court judges and by introducing a combined con-arb procedure at the CCMA.

·        Ensuring that the core rights in the BCEA can be varied only with agreement from the union, for instance on ships at sea where the working time requirements are not really appropriate.

But we must also celebrate the process which led to these amendments.

For the first time, labour and business went and looked objectively at the labour laws in other countries. We found that most other countries have similar requirements on retrenchments, transfers and basic conditions. Indeed, our laws resemble those found worldwide.

In short, the process of developing these amendments demonstrated that the myth about inflexible labour laws has been spread by those who want to turn the clock back to apartheid. In those days, employers could hire, fire and punish African workers at will. That situation undermined economic growth, productivity and equity in our country for decades, and certainly cannot be re-instated here. The agreement of labour, business and government on these labour law amendments proves that fact.

These amendments also prove that negotiations can produce important results. Yes, they require time, effort, resources from all the parties, as well as patience and goodwill. No one ever said they were easy. But they can ensure practical solutions around which all the stakeholders can mobilise for economic and social progress.

In that context, the amendments reflect the fact that mass action can have a constructive impact. Indeed, it is often necessary for successful negotiations, ensuring that all the parties take into account the realities and urgency of finding a solution.

In addition, to celebrating our achievements, we must reflect on the way forward.

To start with, we expect government to implement our agreement on the Insolvency Act. We agreed that courts must guarantee there is really no alternative when a company wants to close its doors. Again, given the very high rate of unemployment, it is critical that employers explore all alternatives before taking this step. We also agreed that workers’ pay and benefits would be protected as far as possible. Unfortunately, the current amendments to the Insolvency Act do not conform with all our agreements. We view this in a very serious light, as undermining our progress in reaching agreement so far.

We also hope to take our lessons from negotiating these amendments forward into other engagements to transform our society and our economy to benefit our people. In particular, we look forward to strong agreements that can improve investment, job creation and equity at the upcoming Growth and Development Summit. We are sure all the parties will put even more time and effort – and patience – into the engagements leading up to the Summit, in order to ensure strong, effective and practical agreements.

In sum, the labour law amendments are both a concrete achievement for workers and employers in our country, and a guide to how to manage social engagement in the future. We need to learn from this example

 

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