Cyril Ramaphosa’s administration likes the “social compact” approach to governance. In his recent weekly letter to the nation, the president reiterated his call for constructing a “comprehensive” social compact that will reflect “genuine consensus … among all social partners”. Illustration: KAREN MOOLMAN
In addition, “organised business and labour” must demonstrate “a willingness … to discuss the trade-offs needed to implement growth-enhancing measures”. Here the expectation will be that organised labour will agree to relax selected labour market regulations and moderate wage demands. Labour will then make demands of business for “complementary actions”. Investment commitments by organised business and price restraints will presumably top the list of labour’s demands.
Nedlac has been the site of important agreements. I participated on the government’s team forging two such agreements, namely those that produced the Labour Relations Act and the Competition Act, two technically complex and politically contentious statutes. The exchanges were tough but generally conducted in good faith and produced two pieces of legislation that have broadly withstood the test of time.
Those were heady and optimistic times, but the commission nevertheless felt constrained to underline the institutional and political challenges entailed in formulating and implementing a multipartite policy accord of this scale and complexity, as encapsulated in the following extract from the report:
Nor are the Nedlac participants sufficiently representative to agree, much less sustain, a comprehensive accord of the sort favoured by the government. Gone are the days when union federation Cosatu could credibly represent all of organised labour. Business is represented by the fragile coalition that is Business Unity SA. And community representation has always been more a product of wishful thinking than reality.
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