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Fin24 reports that contrary to assertions by President Cyril Ramaphosa in his newsletter on Monday that talks for a social compact are on track, business is gearing up to reject the framework his ministers have proposed, claiming that its position has been repeatedly ignored.
The social partners are due to provide feedback on the social compact framework document to Nedlac on Tuesday. The framework document, drafted by the government, sets out the commitments each social partner will make in broad terms. But Business Unity SA (BUSA), which represents business in Nedlac, has sought a mandate from its members over the past week to oppose both the proposed framework and the social compact methodology entirely, in which partners make "trade-offs" ostensibly for the greater good. Business has tried to persuade Ramaphosa since January that a better approach would be to configure a joint programme of work on a limited number of priority issues facing the economy, such as the energy crisis, bulk water, transport and law and order. This should be done through bilateral arrangements with government and not in a multilateral forum. Among other things, business cannot commit to investment targets, employment targets or restrictions on retrenchments. Business has also said it cannot commit member firms to localisation targets across sectors or the appointment of workers to boards. The mandate from BUSA members to reject the framework document marks a hardening of its attitude. Labour also has difficulties with some of the commitments directed towards it. Collective bargaining in the public sector, for instance, takes place in legally designated forums and cannot be agreed at a national level. Labour and government have agreed to move the engagements on labour law reform into a separate Nedlac process.
- Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only)
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