Business Day

Labour runs into flak from Nedlac

• Department of Labour blamed for its mistakes on minimum wages

- Theto Mahlakoana Political Writer mahlakoana­t@businessli­ve.co.za

The Department of Labour’s bungling of draft policy agreements reached at the National Economic Developmen­t and Labour Council undermines the work of the organisati­on.

The Department of Labour’s bungling of draft policy agreements reached at the National Economic Developmen­t and Labour Council (Nedlac) undermines the work of the organisati­on, says Nedlac executive director Madoda Vilakazi.

The department had no legal right to alter agreements such as those reached on the national minimum wage when drafting bills, Vilakazi said.

This comes after labour federation­s and community constituen­cies slated the manner in which the department has handled the minimum wage bills after some sections of the legislatio­n were changed.

The department bungled a key definition of “worker” in the Basic Conditions of Employment Act, thereby excluding independen­t contractor­s and task-based work from the category of covered employees.

The bills also introduced new provisions that were not discussed at Nedlac during negotiatio­ns between the government, business, labour and the community, such as the scrapping of sectoral determinat­ions, which currently determine the wage levels of domestic workers and farm workers, among others.

The national minimum wage was formulated to increase the wages of 6-million workers who currently earn less than the R20-an-hour level agreed to at Nedlac following three years of negotiatio­ns.

Vilakazi said that Nedlac was an important institutio­n that added value to the country. When such mistakes were made, “it does undermine the work of Nedlac”.

In January the department conceded that the definition of “worker” in the bill was not an intentiona­l deviation from the agreement and vowed to correct it.

However, the bill that is now before Parliament still contains the same definition, with union federation­s vowing to ensure it is changed by the time the final piece of legislatio­n is concluded.

According to the department, the “oversight” in the national minimum wage came about during the “certificat­ion process” between the office of the chief state law adviser and the department’s drafters.

It has not indicated whether it would be correcting other sections in the bill that are equally problemati­c according to Cosatu, Fedusa and Nactu.

One of the many functions of Nedlac is to consider all proposed labour legislatio­n before it is implemente­d or introduced in Parliament.

Vilakazi said that Nedlac was still an effective institutio­n despite the challenges with the labour department.

“The reality of the situation is that Nedlac is playing its role as it was anticipate­d in 1995 when it was formed.

“If there are mistakes like what has happened [with the minimum wage bill], it does undermine the work of Nedlac. But by and large, what is agreed to at Nedlac is ultimately implemente­d,” he said.

Vilakazi also emphasised the fact that labour federation­s or business organisati­ons that were represente­d at Nedlac would still be able to make objections in Parliament.

While Vilakazi admitted the department’s blunders were harming Nedlac, he maintained that the institutio­n’s detractors were wrong to suggest it had lost its effectiven­ess.

Vilakazi said Nedlac had brought about positive changes in the country.

“The statement that Nedlac is ineffectiv­e is not borne [out] by fact. Major legislatio­n is considered here. The situation is dynamic,” he said.

 ?? /The Herald ?? Excluded: Independen­t contractor­s and other task-based workers have been excluded from the definition of ‘worker’ in the minimum wage bill by the Department of Labour, drawing the ire of unions and Nedlac.
/The Herald Excluded: Independen­t contractor­s and other task-based workers have been excluded from the definition of ‘worker’ in the minimum wage bill by the Department of Labour, drawing the ire of unions and Nedlac.

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