Nedlac: talk shop or problem solver?
Refocused body must revive social dialogue
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
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