NEDLAC

EXECUTIVE DIRECTOR’S REPORT

(FOR THE PERIOD APRIL 2003 TO MARCH 2004)

ANNUAL SUMMIT

02 OCTOBER 2004

SOCIAL DIALOGUE

A system is a 'whole' that cannot be divided into independent parts, because the behaviour of the parts and their effect on the whole, depends on the behaviour of all the parts interacting with each other (Gharajedaghi & Ackoff, 1985).

The essential properties of a system are therefore lost when it is taken apart.

I am what I am through the qualities and contributions of people around me. “Umuntu ngumuntu ngabantu

CONTEXT

THE FIRST DEMOCRATIC GOVERNMENT - 1994

- POVERTY - UNEMPLOYMENT- ECONOMIC STAGNATION- RACISM AND - INEQUALITY

DEALING WITH JUST ONE OF THESE ISSUES WOULD HAVE BEEN A FORMIDABLE CHALLENGE FOR ANY GOVERNMENT; HAVING TO TACKLE ALL FIVE AT THE SAME TIME IS A DAUNTING TASK INDEED.

IN ADDITION TO THE FIVE ALREADY DIFFICULT CHALLENGES, ANOTHER WAS EMERGING.

GLOBALISATION

KEY FOCUS AREAS FOR THE 2003 -2004 PERIOD

STRENGTHENING SOCIAL DIALOGUE

GIVING EFFECT TO THE NEDLAC FOUNDING DECLARATION GOALS.

- GROWTH

- EQUITY

- PARTICIPATION

- LIFTING SOCIAL DIALOGUE TO HIGHER PLANE

KEY HIGHLIGHTS

THE CONVENING OF THE ICT AND FINANCE SECTOR SUMMITS

THE SIGNING OF THE GROWTH AND DEVELOPMENT SUMMIT AGREEMENT IN JUNE 2003.

- More Jobs, Better Jobs and decent work for All- Addressing the Investment Challenge- Advancing Equity, developing skills, creating economic opportunities and

extending services to all.- Local action and Implementation

THE QUADRI-PARTITE DELEGATION TO CANCUN TRADE TALKS.

THE FINANCE CHARTER

KEY OUTCOMES

THE ANNUAL SUMMIT WAS HELD ON 27 SEPTEMBER 2003

THREE EXEUTIVE COUNCIL MEETINGS WERE HELD IN THE PERIOD UNDER REVIEW. THREE FOCUS SESSION WERE;

- GROWTH AND DEVELOPMENT SUMMIT - MONETRAY POLICY- BUDGET

- SEVEN MANAGEMENT COMMITTEE MEETINGS

KEY OUTCOMES

MANCO

WORK PROGRAMME FOR 2004/5 PERIOD

GDS IMPLEMENTATION PLAN

SKILLS DEVELOPMENT AMENDMENT BILL

UIF AMENDMENT BILL

INDUSTRIAL STRATEGY REPORT

SECTOR SUMMIT GUIDELINES

HIGHER EDUCATION REPORT

INDICATORS SHOW A DRAMATIC IMPROVEMENT FROM THE PAST DECADE

PROBLEMS OF THE 1980’s

Stagnation in output growth Inflation entrenched at over

13% A weak and weakening rand A permanent decline in foreign

exchange reserves Historically low personal

savings ratios Massive and growing

unemployment

REASONS TO CELEBRATE1994 -2004 HIGHLIGHTS

Lowest interest rates in 20 years Lowest inflation rate since

December 1959 Social expenditure from 44,42 of

general government expenditure to 56,72 in 2002/03

Public sector debt below 50% of GDP

Longest period of positive GDP growth since 1940’s and improved wealth per capita

Unbelievably Strong currency

THE LABOUR MARKET:The official unemployment rate

0

5

10

15

20

25

30

35

1995 1996 1997 1998 1999 2000 2001 2002 2003

THE LABOUR MARKET

Unemployment (official definition) has declined

However, there is no significant increase in employment during this period

LABOUR COSTS AND PRODUCTIVITY: Productivity and Employment

-10

-8

-6

-4

-2

0

2

4

6

8

10

Mar-9

8

Jul-9

8

Nov-9

8

Mar-9

9

Jul-9

9

Nov-9

9

Mar-0

0

Jul-0

0

Nov-0

0

Mar-0

1

Jul-0

1

Nov-0

1

Mar-0

2

Jul-0

2

Nov-0

2

Mar-0

3

Jul-0

3

Nov-0

3

Employment

Remunerationper w orker

Productivity

Source: Stats SA

LABOUR COSTS AND PRODUCTIVITY

While productivity growth has slowed, it has remained above real wage growth

Real unit labour costs are still declining

HOUSES COMPLETED OR UNDER CONSTRUCTION: 1994 – MARCH 2004

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

1994-97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

EC FS GAU KZN LIMP MPUM NC NW WC

Source: Department of Housing

SOCIAL WELFARE:Social Grants

0%

20%

40%

60%

80%

100%

Old a

ge

Disa

bility

Care

dependency

Fos

ter ca

re

Child

supp

ort

Pare

nt

Allow

ance

Child

Allow

ance

War

vete

rans

Gra

nt in

aid

2000 2001 2002 2003

NATIONAL HIV PREVALENCE TRENDS 1990 -2002

0.71.7 2.2

4

7.6

10.4

14.2

17

22.8 22.424.5 24.8

26.5

0

5

10

15

20

25

30

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

perc

en

tag

e

Source: Department of Health

SECTOR SUMMITS

FOUR SECTOR SUMMITS TASKS TEAMS EST.

- ICT - CHEMICALS

- METALS AND ENGINEERING- CONSTRUCTION

DEDICATED RESOURCES

TRADE AND INDUSTRY CHAMBER(INDUSTRIAL STRATEGY)

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;

- COMMERCIALIZATION OF THE NATIONAL COMMERCIAL PORTS

- INTEGRATED MANUFACTURING STRATEGY

- RESEARCH & DEVELOPMENT STRATEGY

- ADVANCED MANUFACTURING AND TECHNOLOGY STRATEGY

- POTENTIAL SOCIO-ECONOMIC IMPACT ON THE SA ECONOMY

- BIODIVERSITY

- ASBESTOS REGULATIONS

TRADE AND INDUSTRY CHAMBER(ENTERPRISE DEVELOPMENT & LEGISLATION)

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;

- BEE STRATEGY- SUPPLY SIDE MEASURES- DEVELOPMENT OF COOPERATIVES- SMME STRATEGY

LEGISLATION

- CORPORATE LAW REFORMS- CREDIT LAW REFORMS- CONSUMER PROTECTION POLICY

PUBLIC FINANCE AND MONETARY POLICY (PFMP)

FOUR BUDGET POLICY SESSIONS

8 CHAMBER MEETINGS

9 FINANCIAL SECTOR TRANSFORMATION AND DIVERSITY

TASK TEAM MEETINGS

2 GDS TASK TEAM MEETINGS

PUBLIC FINANCE AND MONETARY POLICY (PFMP)

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;- Regulation of Credit bureaus- Creation of an enabling Legislative framework -

Cooperative banks, not-for-profit micro credit schemes

- measures to end unfair discrimination in the finance sector

- proposals to guide investment into developmental initiatives

- increase savings

DEVELOPMENT CHAMBER

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;

- Education- Social Security- Review Of The Water Services White Paper- Property Rates Bill- Amendments To The Municipal Systems Act- Community Reinvestment Bill- Free Basic Electricity Policy- Cooperatives – Bill & Policy

LABOUR MARKET CHAMBER

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;

- Demarcations Bargaining Councils- Employment Equity – People With Disabilities- Skills Development- Insolvency Technical Team- ILO Maternity Protection Convention- Jobs Impact- Productivity- Statutory Bodies

LABOUR MARKET CHAMBER

KEY FOCUS AREAS IN THE CHAMBER WERE INTER ALIA;

- Demarcations Bargaining Councils- Employment Equity – People With Disabilities- Skills Development- Insolvency Technical Team- ILO Maternity Protection Convention- Jobs Impact- Productivity- Statutory Bodies

(34 Meetings in total)

GROWTH AND DEVELOPMENT SUMMITGDS

GDS - STANDING AGENDA ITEM ON ALL NEDLAC STRUCTURES.

TASK TEAM TO FOCUS ON THE GDS IMPLEMENTATION

23 TASK TEAMS SET UP TO FOCUS ON GDS IMPLEMENTATION

IMPLEMENTATION PROJECT PLAN WAS TABLED AT THE NOVEMBER 2003.

THE GDS INCORPORATED INTO THE CHAMBER WORK PROGRAMMES

THE CONSTITUENCIES ARE TAKING STEPS TO IMPLEMENT THEIR COMMITMENTS

SECTION 77 NOTICES

THE STANDING COMMITTEE DEALT WITH 7 SECTION 77 NOTICES

- 1 WITHDRAWN

- 1 DISQUALIFIED AS NON-COMPLIANT

- 3 STILL PENDING

- 2 SETTLED

VISITS TO NEDLAC

NEDLAC RECEIVED THE FF DELEGATIONS;

- 20 COSATU ORGANISERS

- FRENCH SENATE BUDGET COMMITTEE

- THE PEOPLE’S REPUBLIC OF CHINA

- CUBAN MINISTER OF LABOUR

- CUBAN INTERNATIONAL RELATIONS TEAM

COMMUNICATION

- 4500 COPIES OF DIALOGUE WERE PRODUCED

- PUBLICATION OF SOCIO ECONOMIC DEVELOPMENT

- WEBSITE AVERAGED 3000-3500 PER MONTH.

- NEDLAC EXHIBITION

- NEDLAC IN THE MEDIA -1200 ARTICLES

FINANCES

INCOME

GRANTS RECEIVED 7 673 001OTHER INCOME 488 748

________TOTAL

8 161 749________

EXPENDITURE 6 268 415

SURPLUS (DEFICIT) 1 893 334