COUNCIL OF CONFLICT

Nedlac was meant to act as a forum for representatives of stakeholders to meet and discuss pending labour legislation and policies. But it has a history of friction, which still characterises

In theory it was a sound decision by government to create the National Economic Development & Labour Council (Nedlac) in 1995 to add legitimacy and transparency to the socioeconomic decisionmaking process.

The principal constituencies are business, labour and the state. Business is represented by Business Unity SA (Busa, a federation of employer and business organisations), while three trade union federations — Cosatu, Nactu and Fedusa— represent labour.

But the forum has been like a battlefield. In February former finance minister Pravin Gordhan had a showdown with the Black Business Council (BBC), which was admitted on

Busa’s ticket, when he accused it of trying to capture treasury and of being in the pockets of the Gupta family. Later came the split between the BBC and Busa. The BBC is confident that it will remain at Nedlac, but it will now have to apply for admission on its own behalf.

All of this raises the question of whether the forum needs an overhaul. It’s not the first time Nedlac has come under scrutiny. In 2005, former labour minister Membathisi Mdladlana called in a team from the International Labour Organisation to investigate why Nedlac wasn’t working properly. Twelve years later, little has been said or done to change the model and the organisation still does not function effectively.

The relationship between Busa and the BBC has always been strained, but it has remained amicable enough for the BBC to stay on at Nedlac.

A few weeks ago, the BBC stated how important Nedlac’s objectives were. BBC president Danisa Baloyi said: “The BBC will continue participating in Nedlac as an independent voice of black business, and we believe this will provide a great opportunity for the BBC to [act as an advocate for] the aspirations of our people.”

Among the issues that divide Busa and the BBC is whether the credit ratings downgrades matter. Busa is deeply concerned about “junk” status, the BBC not so much. Then there is the meaning and implementation of radical economic transformation — though neither seems to be clear on what it means or how to achieve it.

The BBC maintains it will continue to participate in Nedlac as an independent voice of black business — despite its seemingly irreparable split from Busa. “[Busa has] no mandate to kick us out,” says Baloyi.

Except that the Nedlac act specifically says Busa represents the business constituency.

“Nedlac is only representative when we are part of it. I want to make it clear that [Busa] doesn’t represent us. [It does not] represent our interests,” says Baloyi.

A precedent was set in 2011 when the Confederation of SA Workers’ Unions applied for admission to Nedlac and was blocked.

Busa itself has welcomed the BBC’S application to Nedlac, as long as it’s not on Busa’s ticket.

Busa CEO Tanya Cohen says Nedlac is an important platform and serves a crucial purpose. “What it does right is to ensure that there’s formal engagement between social partners. It has a pivotal role to play.”

Nevertheless, Cohen says, Nedlac doesn’t work as well as it should.

“Government representatives often don’t show up. It’s not always clear that everyone’s interests are being represented.”

Cosatu spokesman Sizwe Pamla says: “We’re campaigning for Nedlac not to be undermined. We’re seeing the beginning of an effort from business and government to undermine Nedlac.” He says Nedlac has its merits but without the BBC, it will be white business against everyone else.

“Though we can deadlock at Nedlac, the forum allows us to engage on our issues until we find common ground.

“But business is not well represented. The fallout between Busa and the BBC is a very big deal for us. We are pushing the interests of workers and radical economic transformation. We want to see black and small business represented.”

Besides stakeholders not showing up for meetings and the continual internal battles. Nedlac’s problem is one that mirrors SA’S — the model is fundamentally exclusionary and doesn’t adequately represent business, labour or civil society.

Labour analyst Dale Mckinley puts it simply: “I’m not a fan of Nedlac. It’s exclusive and leaves out a portion of society.”

That is because labour is represented only by unions, and much of the workforce is not unionised; and civil society representatives are chosen by the ANC and the alliance, and don’t adequately represent SA’S society.

“It doesn’t speak to most challenges, concerns or problems. Its elite-led and there are closed-shop benefits,” says Mckinley. “There’s a radical division. There are factions within the organisations. The old boys’ club still runs the show and black business and small business haven’t been able to get in.

“The BBC’S departure is an indication [that there is] a closed shop that wants to keep out voices that don’t buy into the dominant narrative.”

It’s the start of a debate about whether Nedlac should continue to exist at all.

“The question is not whether the BBC should be accepted or not — the question is whether Nedlac has become irrelevant,” Mckinley says.

What it means: The Nedlac model has not worked well in recent years