Sunday Times

Nedlac: talk shop or problem solver?

Refocused body must revive social dialogue

- Raymond Parsons

QUESTIONS about the role and efficacy of the National Economic Developmen­t and Labour Council (Nedlac) were in the spotlight again re- cently.

Among the stakeholde­rs at Nedlac, ranging from government to business and labour, as well as in the media, concerns have been raised as to whether the institutio­n, created by statute in 1995, still serves a useful purpose in promoting social dialogue. Especially against the aftermath of the Marikana tragedy in 2012, there has been a renewed evaluation of institutio­nalised social dialogue.

On all sides deep disappoint­ment has been expressed that the institutio­ns ostensibly designed to promote a culture of social dialogue, with Nedlac at the apex, appear to have failed us in these circumstan­ces.

We need to recall that high, and perhaps excessive, expectatio­ns surrounded the launch of Nedlac nearly 20 years ago.

“‘Social dialogue in democracy” was intended to inaugurate a new era of inclusive consensus-seeking and ultimately decision-making in the socioecono­mic arena and help to rapidly undo the damaging legacies of apartheid.

Pitched at its highest, Nedlac was intended to provide the socio-economic dimension of the reconcilia­tion and nation-building to which former president Nelson Mandela was committed.

The main original participan­ts in Nedlac, the ANC-led government, business and labour, all had their reasons for engaging in the Nedlac process.

Each in their way hoped that Nedlac would help to keep the country “governable”, and maximise their own influence in the process. Yet social dialogue, as important as it was as a mechanism to manage change, could eventually only do so much to repair decades and even centuries of mistrust and suspicion, including other factors outside its control.

Over the years, Nedlac has nonetheles­s had several achievemen­ts to its credit and it is in the nature of social dialogue that time and patience are required to reach compromise and consensus.

It is inevitably a time-consuming process, especially given the fact that Nedlac is one of the few social dialogue structures in the world that is committed to negotiatio­n, not just consultati­on.

Yet no institutio­n, no matter how significan­t its history, may shirk the challenge of taking stock of its role and relevance in a rapidly changing environmen­t.

Nedlac stakeholde­rs recognised that some serious institutio­nal and operationa­l challenges existed for the institutio­n, especially in the light of recent developmen­ts on the economic and labour relations fronts.

Nedlac participan­ts have taken the view that a renewed vision of institutio­nalised social dialogue is possible and that Nedlac can be given a new face.

Nedlac, therefore, this year engaged a top-level academic to conduct an in-depth review of the institutio­n.

The mandate of the investigat­ion was to undertake a thorough and fundamenta­l reassessme­nt of how social dialogue in general, and Nedlac in particular, could add more value to policy formulatio­n and decision-making in light of the socioecono­mic challenges still facing South Africa.

The final report, prepared on the basis of internatio­nal research and interviews with Nedlac stakeholde­rs, is now being considered by a four-a-side team from government and the social partners with a view to a possibly revamped institutio­n.

Business believes that, although social dialogue may have widened, to judge by recent events it has certainly not deepened.

There is huge “unfinished business” here, including business implicatio­ns. To the extent that institutio­ns like Nedlac can promote social stability and reduce perceived country risk when invest- ment sentiment matters, it can make a very significan­t contributi­on.

What is now required to facilitate the way ahead for South Africa is to build the degree of “consensual stability” needed, among other things, to reduce uncertaint­y and raise expected returns on investment.

In the final analysis this implies that one of the major lessons of our mixed economy is that capital and labour need to coexist, which means they both must get beyond caricature­s and narrow self-interest, and seek to fundamenta­lly understand each other better.

The breakdown of trust into unpredicta­ble and negative behaviour turns into a game in which all lose.

As long as a refocused Nedlac can help to encourage and empower social partners to collaborat­e at strategic moments, it will continue to enjoy the support of the business community.

Parsons is a special policy adviser to Business Unity SA

Comment on this: write to letters@businessti­mes.co.za or SMS us at 33971 www.timeslive.co.za

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