Share

Nedlac has reached its sell-buy date - analyst

Cape Town – The National Economic Development and Labour Council (Nedlac) has reached its sell-buy date and a new organisation, consisting of a loser formation of business, government and labour, should be formed in its place.
 
This was the view of Mzukisi Qobo, associate professor at the University of Johannesburg and one of the authors of the Institute for Justice and Reconciliation (IJR) 2016 Transformation Audit.

“There are tensions among the social partners and a trust deficit which means the mechanisms put in place, such as Nedlac, are no longer relevant. It was a transitional arrangement, but we now need a new social compact,” Qobo said.

A weak organisation

According to him, Nedlac is weak and sectoral-driven and is not driving social change or economic reform.

“The Black Business Council (BBC) for example does not have a seat on Nedlac, while the trade union federation Cosatu has also changed and it’s not what it used to be,” said Qobo.

In October 2014 Cosatu suffered the breakaway of the National Union of Metalworkers SA (Numsa) which has recently under the leadership of former Cosatu general secretary Zwelinzima Vavi formed a new trade union federation Saftu (South African Federation of Trade Unions).

Another Cosatu-affiliated union, the National Union of Mineworkers (NUM) also saw its support dwindling when large  members joined rival union Association of Mineworkers and Construction Union (Amcu) – most notably in the platinum mining sector.

According to Qobo, Cosatu has too much power in Nedlac and they use Nedlack to fight policy issues with government.
 
“A new cooperative arrangement should have different business and labour representation. On the workers’ side there is currently only representation for people whose jobs are already protected by labour and employment equity legislation which leaves out those who are prejudiced by legislation,” Qobo said.

Gigaba’s real test

Responding to a question, Qobo said he is concerned that the ANC’s leadership contestation ahead of its elective conference in December this year could divert attention from the real debate, which is about the state of South Africa’s economy.

“We hope whatever the outcomes are post December there will be a realisation that economic reforms need to be implemented urgently.”
 
Qobo said Finance Minister Malusi Gigaba is aware of these economic challenges, but the real test of his leadership skills will come to the fore when he starts differing publicly with his cabinet colleagues.

"He needs to have a productively tense relationship with his colleagues," Qobo said.

"Government ministers want to spend and test the boundaries. And they’re parochial. But the finance minister is there to exercise a buffer. When he starts to talk tough and he sets clear boundaries – that will be a good sign that institutions are intact. That will show macroeconomic stability is sound and there is a framework that promotes transformational economic policy thinking."

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.4%
Rand - Pound
23.94
-0.2%
Rand - Euro
20.50
-0.2%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.4%
Platinum
898.45
-0.8%
Palladium
1,000.75
-0.1%
Gold
2,193.42
-0.1%
Silver
24.50
-0.6%
Brent Crude
86.09
-0.2%
Top 40
67,995
+0.5%
All Share
74,200
+0.4%
Resource 10
56,292
+1.1%
Industrial 25
103,603
+0.3%
Financial 15
16,537
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders