Strike action has become a blunt weapon
Bold leadership needed to foster a common vision for SA
WHAT has gone wrong with our labour relations and collective bargaining system in recent times? Why is it now being perceived as a threat to South Africa’s economic performance instead of underpinning it?
Only a few years ago, South Africa was complimenting itself on the sophisticated collective bargaining framework that had been crafted in the National Economic Development and Labour Council nearly two decades ago and that drew on the best experience both locally and internationally.
Yet strikes are becoming a way of life in South Africa now. Strike action as the last resort is becoming the only option and the way to go.
It is not that the right of workers to strike is rejected. Rather, it has become a blunt weapon frequently wielded in an atmosphere of hostility and intimidation with negative socioeconomic consequences for all.
Is this helpful to an economy bat-
We need a grasp of what excessive wage claims will do to the cost of doing business
tling to avoid a low-growth trap or even ‘‘stagflation’’?
Industrial action in South Africa, though permitted by law, is negatively affecting the economy through its impact on jobs, stability, investor confidence and growth.
Credit-rating agencies expressed concerns earlier this year regarding costly strikes in South Africa. More worrying is that structures that are in place to promote collective bargaining in order to avert industrial action are slowly becoming redundant and irrelevant.
Our collective bargaining system as a tool that employers and unions should use to reach an agreement is becoming weak and ineffective. Against a vulnerable economic back- ground, widespread strikes are becoming annual events.
In the absence of long-lasting solutions, labour instability also encourages mechanisation, which is not a positive trend for job creation.
The continuous strikes in various sectors and industries undermine the gains achieved in the past. The damage is far-reaching and amounts to billions of rands in lost revenue and productivity.
The good news is that the latest GDP figures for the second quarter of 2013 suggest that a platform might be developing for higher growth in 2014.
These better growth prospects could well be jeopardised if strikes are too costly and disruptive in the months ahead.
Business is deeply concerned that the escalating unrest will inhibit domestic and foreign investment and hamper growth.
The violence, intimidation and militancy often associated with strikes confirm that there are significant weaknesses in our collective bargaining system that require social dialogue and bold leadership to address through collaborative action.
Business and union leaders should work together to foster social dialogue and dispute prevention and resolution mechanisms. This can only be underpinned and supported by a common vision of a better South Africa for all. It requires thorough research based on empirical evidence of how much employers can afford in relation to productivity.
We need a realistic grasp of what excessive wage claims will do to the cost of doing business and to employment opportunities.
Unlocking South Africa’s true potential and rebuilding confidence and integrity in our labour market system will require bold leadership and commitment to the National Development Plan’s vision for South Africa by 2030.
Advance planning is also important to manage strikes, especially because collective bargaining is an entrenched process. Contingency planning by both employers and unions should become standard in the expected wage-bargaining cycle.
At the heart of this remains the desire to promote decent work and protect vulnerable workers at the same time as allowing businesses to grow and create jobs.
Effective social dialogue is necessary to promote fair and peaceful workplace solutions.
The most urgent issues facing the economy today are the triple challenges of unemployment, poverty and inequality.
We will fall short of adequately meeting these challenges unless the instability in labour relations leads to a critical review of leadership and the behaviour of key stakeholders.
Higher job-rich growth in South Africa depends on maintaining a framework for collective bargaining and labour relations, which is ultimately based on the pillars of dialogue, leadership and commitment.
It is leadership that wins the confidence of the nation by demonstrating its capacity to tackle challenges such as labour conflict that will make for a better future by 2030.
Majokweni is CEO of Business Unity South Africa