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News24 reports that President Cyril Ramaphosa's ambition to strike a grand social compact with business and labour might not work out after all, he suggested to delegates at the ANC conference on Friday evening.
Ramaphosa, who said in his February State of the Nation Address (SONA) that he wanted a social compact agreed upon within 100 days, is a strong believer and champion of compacting, which he has advocated as the best way to generate economic growth. But on Friday, Ramaphosa said: "We need to assess whether our ambition to build a 'grand' social compact is feasible or whether we need to focus on building social compacts around the various areas that require broader social collaboration." The attempt to build a social compact through the National Economic Development and Labour Council (Nedlac) has been difficult. Labour has indicated that it cannot commit to policy comprises or wage restraints on behalf of individual unions. Similarly, business has said it cannot commit to investment or employment targets on behalf of union members or individual businesses. Numerous commentators expressed doubt about whether compacting was the priority when the government needed to improve its capacity to deliver. Ramaphosa said the government had achieved more success in smaller sectoral compacts over the past five years and that perhaps this should be the priority.
- Read the full original of the report in the above regard by Carol Paton at News24 (subscriber access only)
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